The Washington herald., 1907-11-02
MAINTAINS DIVIDEND
Pennsylvania Declares the
Usual Disbursement.
MORE GOLD IS ARRANGED FOR
Cash Gain OF sixteen Millions from
the >ubtreasUry Reduced to a Low
Figure by Demands from Interior
Selling of New York Central and
Pennsylvania Had Origin in West.

New York. Nov. dealing in stocks
We're considerably restricted to-day, not
by reason of any fresh adverse develop
mentS, but because of the utter perplexi-
~ ia the minds Of the speculative COM
muniy over the many extraordinary and
complicated features of the present finan-
cial situation
II was known before the opening of
business to-day that the Pennsylvania
Railroad directors at an unusually early
meeting had declared the regular semi
annual IL per cent dividend on their
company's stock This was a prompt
answer to the stories OF yesterday that
the dividend on the stock was likely to
be reduced
RUmoTs soon became very general that
the heavy selling Of the Pennsylvania and
New York Central shares. which has
characterized the market this week had
their origin IN a large Western city and
were united with the affairs Of the two
companies named. and these rumors af-
fected the security market % a greater
or less degree throughout the day.
Fail TO Understand Conditions.
The real influence working TO curtal
transactions in stocks to-day was, how
ever. the inability of the large trading
interests In the market % understand
fully the peculiar nature and possible
eventualit!es of the current situation in
foreign ana domestic exchange.
Although additional sold imports were
announced to-day. bringing the total gold
engagements for our comtry's account
on this movement TO not far from $50
6o0,000 the price Of sterling advanced here
with rap.dity that has been rarely if
ever. oQuaued- The price of demand eX-
change rose 8 ID cents in the pound. and
q greater advance was recorded in the
price OF cable sterling
on the face of things this rise was due
to the hasty efforts of gold importers 20
cover IN the exchange market their pur-
chases abroad Of the yellow metal, but
the price paid for exchange to-day was
nearer the gold export than the gold inn
port point. and il was obvious that some
other cause than that of the purchases
described was operating.
Offer Advances on Gold.
.'ik 90 ittttcf Nne Ift Ni4A fllt~titll tllt
premium on currency In our country that
has been called into being by the partial
suspension Of cash payments by the
banks and this premium was high
enough to-day to induce offerings of an
advanced price on their gold engage
ments 70 banking firms who are now
bringing metal over from Europe.
Further doubts as 70 the results of the
existing abnormal condition of affairs
were stimulated naturally by the publica-
tion of the usual preliminary estimates
of to-morrow's bank statement These /
forecasts indicated that the cash gain by
the banks of 100000 from the sUbtreas-
my during the week had been reduced to
low figures OF changed into an actual
loss through remittances of money TO the
interior of the country 1t seems obvious /
that the issuance of loan certificates by
our local banks cannot avert altogether
a movement of cash out of the city for
the absolutely necessary purposes Of /
business