Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1907-11-02
NO SERIOUS UNREST
Bankers Take Favorable View
OF the Situation.
30 FAILURES ARE RECORDED.
Reports From New England and All
Points show "a Favorn bile Tendency
and Runs Upon Banks Are
Practically over.

NEW YORK. oct 3O.-The enormous
influence which American products are
exerting IN building up a credit bal
ance abroad has been the most signal
development OF the financial situation.
Reports from an quarters show that
the great American staples-wheat.
cotton. copper. tobacco. OH and meats
are on their way To- Europe. this be-
ing the season OF the year when Amer
ican products are marketed abroad.
The immediate effect of these ship
ments Is TO give the United States a
credit abroad which can be speedily
converted into cash.
These natural resources OF the cOun-
try promise to exert even greater in-
fiuence than the sale OF American SCI
curities abroad The latter have to
some extent suffered discTedit under
recent pressure. but the intrinsic value
OF American staples used abroad and
their colossal aggregate at this period
OF the year are beyond The reach or
financial diStrust.
The foreign salcs OF millions OF Amer
ican copper were supplemented by re-
ports OF similar heavy exports in
wheat, the last shipments alone giving
a foreign credit OF Sl.Q00CO0. The
shipments of tobacco TO Europe this
year promise to break au records. or
fcials of the American Tobacco com
pany estimate from the orders ou hand
that TIE years exports win exceed co.
100000 pounds of manufactured tobac-
co. which is GAR m excess OF the
amount exported iast year Europe
VIII pay over S10oo000O0 for this Coz
bacco. and much OF this money win
soon be available ln This market as the
contracts with thc European importers
call for immediate payment ou de-
livery.
Runs upon the banks are practically
ever. Persons who present large
checks and ask for their payment On
bank officials ln cases where their
need FOR currency is evidently legiti-
mate they usually receive 30. In cases
where 80 is sought for boarding uey
are usually convinced that money us
better OF in The bank or that they
should accept certified checks FOR de-
posit elsewhere.
The arrival OF nearly S2000OO00 iu
gold. it is believed. win considerably
relieve the situation and perhaps make
call money q litle lower Oh the stock
exchange The decline ln stocks was
generally attributed To the continued
scarcity of money Tor speculative pur-
poses. the refusal of brokers 20 make
transactions except Tor cash and the
absence OF buying interest under pres
snt disturbed conditions. The fact that
the Bank OF Germany edvanccd it's
discount rate from 5ia to 6ia per cent
was not unexpected in view Of the
care with which the German bank
protects its gold stock.
The intlmation of Dr. Koch. gov
eTnor OF the bank. that the action TAX
en- would Wufavorably affect the Amer
lean situation is interpreted as mean
ing nothing more than that it would
impose q check on the shipment of
German gold % New York The fact
that the day PASSED without any spe-
cial meeting OF the directors OF the
Bank of England for the purpose Of
raising the discount rate was accepted
with qualification. and ir Isl hoped that
no action viii Dee taken until the regu-
lar meeting OF the board on Thursday.
Comparatively few conferences were
held because &c was felt that New
York bankers had the situation well in
hand and that the provision for clear
ing house certificates and for paying
large drafts in checks instead OF cur
rency would avert any further trouble.
Aside from the satisfactory local con
ditions. reports from all points showed
q favorable tendency. In New Eng
land there was no sign Of serious I'M
rest, and the recent disturbance IN
Rhode Island is practically over. No
failure was recorded az any point
throughout the country. IL should be
borne in mind ia this connection that
there are over 1880 banks in the
United States and that the number Of
institutions which have recently failed
is OF Insignificant proportions as com
pared with this total.
1t was pointed out that the failure OF
a minor bank is Immediately known
from end to end OF the country. where
as the public overlooks the fact that
some 1880 banks are open FOR bust
ness as usual and that not one Of the
really important banking institutions
anywhere has shown the slightest
signs Of unsoundness.
on the whole, the banking commu-
nifty takes a favorable view OF the out
look and is particularly encourag ed by
the large foreign credit secured through
the enormous shipments OF American
products abroad.
Several favorable events marked the
close Of the financial day in this city
The engagement OF 100000 in gold
by the First National bank Of Chicago
and Of $4,000 10y a Boston bank
brought the total gold engagements up
close TO $20.OOOOOO in spite OF the can.
collation. Of an order for 100000 by
the Russo-ChineSe bank upon the
ground that the amount engaged ex.
ceeds necessities here.