The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-11
Close Of Eventful Week Shows
Great Improvement, With Some
Clouds Still Over Horizon.
GOLD FOR OUR PRODUCTS
Europe Must Pay Substantially
in. the yellow Metal for the
Balance of Exports.

4. NEW YORK. November 1o-The
most eventful week in the financial
history of the present generation came
to. a close on Saturday, with condi-
ffons much clearer than week before,
i5rit with some clouds stu hanging
ever the financial horizon. The pre-
'.vious week had closed with the dis
!, e,,ieting announcement that the New
York bank reserves had lost S300oo,O 600
eir..cash. in spite of deposits by the
government during the week of n
nearly equal sum. representing net
cash loss of s60.o00,0o0.
The bank statement of yesterday
changes this situation. While it shows
nominal decrease in required re-
serves of si3,os5,soo. more than two
thirds of this decrease is due to the
reserve requirements caused by in
crease in deposits because of the TAX
ing over of loans from the trust COM
Renies BY tile banks. Moreover. the
actual cash loss OF s4,313.o00 Is due
: 10 the system of avera ging accounts
: forth entire week, including several
days before the arrival f the new
gold.
are very heavy next week the arrival
of additional gold will more than offset
>ffle. loss of cash last week and make
"A creditable showing for reserves on
Saturday next
Opened with Grave Doubts.
The week began on Monday with a
feeling of grave doubt as to the fu
ture of the two trust companies which
had been subjected to severe runs.
The possibility that they might go
down and drag with them much of the
financial structure which still stood
erect, kept Mr.. Morgan. the trust COM
leaders, in almost continuous session
until late Sunday morning and again
on Wednesday until 3 O'Clock In the
morning. When 1T was finally an
inounced early on Wednesday forenoon
by President King, of the Union Trust
Company, acting as chairman of the
committee of trust company presidents.
that the management of the Trust
Company of America and the Lincoln
Trust Company We're to receive all the
assistance they required in return for
.depositins the majority OF their stock
in the hands of the committee, tho
Situation cleared, q large degree of
confidence returned, ard the stock mar
ket advanced generally from two 20
tree points 1t was felt that tho
) danger of general crash in New York
.was over. Esd that the Sui sing waves
of the storm would gradually subside.
Precautions Taken Abroad.
.ateThe restoration of comparative Sc
ncurtty in New York was obtained only
by demands upon the nancy markets
of Europe, which created a tension
not before experienced since the Boci
WAR. Indeed. tie Bank OF England, in
order to protect its gold resources
raised Its discount rate on Thursday
To per cent. n rate which had not
before been fixed since 1873
Ia nf
for discounts to per cent, the Bank
rrof' Belgium to per cent, and the
Bank of Germany. at special meet
ing called on Friday. fixed the un-
usual rate of 71-2 per cent.
Ill is not surprising that these pre-
cautions were taken to protect Euro.
spean bank reserves in view of the
fact that nearly so0,000,0O0 in gold
was engaged by American banking ia
sututions within less than two weeks
The first arrival OF the yellow meta
came at TIVE critical moment, when tn
trust company situation was uncertain
on Tuesday. Then came smaller con.
signments OH Wednesday. and on Fri
day the delivery of $10,36l,0 900 by til.
Lusitania. g I.
Cotton and Wheat Movement.
The demand for gold from Europe
came at a favorab BILE time in some re.
spects, because of the outward move.
ment of American products. of which
the leading ones are cotton and wheat
The fact that European bankers de.
clined during the summer to accept
American finance bills because the,
already scented the storm, made the
demand upon them more sudden thar
would have been the case IL American
bankers had feynd 1T necessary al
the present tint to buy cotton ant
grain bills TO cover previous borrow
lnss. Under the actual conditions Flu.
rope must pay substantially in gold
Tor the balance of exported product.
which is being created in favor OF
This country by every bale of cotto,
and carload of wheat placed on shin.
board for export. The cotton move
ment has been good deal congestet
by the absence of small bills in TIL,
Southern banks, but everything pos
s!ble Is being done by the Secretary
Of the Treasury and New York bank
ers to aid the Southern banks in meet
Ing the situation. The same is true II
regard TO the movement of grain
which has thus far been more easi!S
handled at Duluth and other North
western points with the aid of til,