The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-12-16
Influx Of Currency Has Not
Come, al Was Anti
cipated.
EVIL NOT ENTIRELY CURED
Normal Conditions Have Not
Yet Been Reached and
Purchases Are Wary. ~.

NEW YORK, December t5.-Lnst
weeks financial markets reflected one
OF those reversals of movements by
which tho limitations OF tho existing
situation became defined. The reac
ton was accepted NJ, q demonstration
that the recovery had adequately eX-
pressed the Improvement In condi-
tons and in fact might BIO regarded
as running beyond that point.
The later stage of tho rebound in
prices was due obviously to the needs
OF an uncovered short interest and
with the satisfaction of the need OF
the market for securities lacked the
stay of this dnmand.
Besides this natural force Of reaction
from the first reboun !, there was owl
dence that aorpe OF the factors which
had been counted on to sustain the
recovery had turned out dsappointing
The most conspicuous Of these ele-
lnents was the decided stiffening of
the call money and the hardness OF
the expected relaxation in the general
money stringcncy.
This ultimate outcome is SO GER.
tainly indicated by all prior experience
of money crises that much of the recent
discussion had run to possible meas
ures of relief of future currency In
ilation and redundancy OF money mar
kets, even while New York clearing
nous banks were at the lowest ratio
of reserves to deposits In their his
tory and the clearing house certificates
continued to effect settlement of bal.
snces between banks all over TIN.
country.
Too Much Haste.
Last week saw the growth OF con-
viction that too much haste was be-
do In ftn az int tA,, 49,.
passing of these abnormal conditions.
Less confidence was felt that the re-
sumption of cash payments by the
banks and the establishment of the
credit situation could be effected be-
foro the end CT the year
The demand from the interior for
currency was not much abated, In
spite of the apparent great strength
In reserves of interior banks disclosed
by the responses to the controllers
call. Their realization was brought
home to the financial community that
very heavy credit requirement mus
be met for end of the year, including
large mercantile borrowings to insure
the continued flotation of business
activities, wnle n premature assump-
ton was being made in the stock
market that the expected refluX OF
funds to normal banking chan
Wouiu De IN TIME TO meet these re.
quirements.
The New York banks acknowledged
that steps were incumbent upon them
to repair their position as necessary
preliminary to the establishment OF
normal conditions in the country.
Contraction of Loans.
The contraction of loans in pursu-
ancc OF this end ran up the weeks
money rate and turned prices of Sc
curities downwards. 1t is fact, how
ever. that the attraction of the high
money rate has induced some lending
of interior funds in New York for the
first time since the crisis developed.
Another active factor towards check
ing the rebound in the markets was
the question of divided reductions
which was brought forward by the
weeks events.
The shutting down of number Of
the Amalgamated Copper Company's
mines called attention to the shrink
age in productive output of that in
dustry. and emphasized the effect Of
reports OF progressive decline In the
iron output. Railroad traffic officials
also gave utterance to their discovery
that beyond the traffic now moving
on old orders little new Is In sight.
The declaration of scrip instead 81
cash divided by the Western Union
and the Atlantic Coast Line opened the
field of conjecture of similar results
to Glow from the trade reaction.