The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-04-20
RAILROADS. BORROW
LARGE SUMS OF MONEY
Big Companies Make Private
Loans. Paying More Than
Regular Interest Rate.
FUNDS FLOW INTO NEW YORK
Report OF Cut i'll Price OF Steel
Products Has an Unset
ting Effect.

NEW YORK. April la.-Growing
case and plethora Of funds in the New
York money market was the marked
feature of the financial situation last
week. with the midmonthly diebnrse-
ments OF dividends at lii per cent.
Interest rate was found necessary to
effect the placing of funds on call. and
sixty-day loans fell below per cent.
The export OF gold was the nattra!
consequences of this condition, and a
call from the United states Treasury
for the return OF an instalment OF
government deposits is not expected
70 have any material effect in stiffen-
ing money rates.
THAT the plethoric condition of tho
money market is due in an important
extent to the violent measures for re-
lief taken in the panic last fall is true.
hut shrinkagc In trade activity is IN
dicated also. TO an extent which de-.
priyes the ease OF money of much OF
It's favorable effect
Great Volume of Bank Reserves.
INIT, last weeks engagements OF
gold for export there has been no re-
turn of any part of the sl0o.o0O.ooo OF
the metal which was imported during
the financial crisis last fall. The re-
.ention Of this great fund of reserve
money was facilitated by the enormous
merchandise exports which went for
ward month after month in the process
.. liquidation to meet cash require.
nlents. In March, for tho first time
since October. the value of exports fell
below those for the corresponding pc
Rod of ,ast year. Although the shrink
age in value OF imports has been much
more violent. 1t is expected that tho
outward movement of gold will attain
considerable dimensions. The flow OF
funds TO New York from the domestic
Interior. meanwhile, continues in I'M
aba ted volume. and the surplus of tho
New York bank reserve is assuming an
unwieldv volume.
Money market conditions. therefore
seem 10 be reaching the condition
promising success for new offerings
ot securities. The known necessities
OF the railroad corporations promise
large issues of new securities as soon
As conditions become propitious. The
Union Pacific. the Illinois Central the
Delaware and Hudson. the New York
Central. the marlborough Metropolitan
and some minor companies have an
ncunced their plans already.
Railroads borrow Money.
Tenders for these issues will be
awaited with great interest to indicate
the course of the investment situation
y fact having some bearing on this
situation is the borrowing by some of
the railroads. privately as reported
last week. on temporary notes on
which the interest rate is said to be
considerably above the prevailing
market rate. Aside from the needs OF
the corporations. the demand for loans
10 eli oil he Of tI,a
market is due TO this in equal part
with the abundance of supplies. The
rourse of earnings of the railroads has
not turned for the better yet in xuf'i-
cient degree to help their credit II
spite of the progress in cutting down
expenses TO meet the inroads on cross
earnings.
a fresh decline in orders for steel
products, instability In the iron mar
ket. and continuous decline in prices
of the copper market are burden for
hopeful sentiment to contend with. Re-
curing reports Of an intended cut in
prices OF steel products have an un-
settling effect in the trade. in spite
of the expressed determination of the
allied Interests controlling the largest
portion OF the output 10 maintain
prices. Crop prospects are of growing
influence on speculative sentiment
From the high promise of the condition
on April LIST, shown by the government
report, the need of moisture in some
portions of the winter wheat belt in
dictated possible deterioration which
made this influence All unfavorahle one
for the securities market last week
pealnes'tin securities. however, were
,,nimpt,ftaitt' owing 10 the short week
caused by the closing of the Stock Ex
change on Friday and Saturday
!