The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-01-27
Call Loans 4,'1 Are Now at Al Al
Almost Normal
Figure.
IRON IN. TRADE DEPRESSED De: s s I;
] ',1tl Awaiting Anxiously tile lie
Reporton tile Steel Corpora
ton on tuesday.

ton on Tuesday.
NEW YORK. January c6.-.Tlie fea-
lure offtbe, financial situation last week
Was the Continued rush Of funds back
Into thefresei.ve deposits or the banks.
witt, exhausted effect, however. In
lstfnlulnting my strength I'm the mar;
ket for securities. Therretiirning flood
Of money to reserves was perceptlble
III, the fore gn money centres. as we'll
down thefotllclaI discount rates OF the.
Ia nix of England. the Bank of France
and the Imperial Bank of Germany
and the open market rates in all mar
kets. Notwithstanding this decline In
the attraction for money abroad, the;
price has risen strongly towards the
TN te ut which exports would be protit-
a bic be The growing redundancy Of our
money market has been responsible
for this action. Supplies have pressed
upon the New York loan market with
increasing urgency, carrying tile call
loan rate down to almost nominal fig
ures, and reducing the interest on
time loans to figures lower than were
enjoyed ats.any time last year.
Certificate. Retired.
EISSuc MN Oih
clearing house loan certificates has in
consequences been going into rapid re-,
tirement. The rapid easing OF the
money market has not been affected
by the notice of withdrawal Of Slh.-S
200 OF government deposits from the
New York banks. partly because OF the
large current deficit In the govern
ment revenues. but also by reason Of
the accumulation of funds being nlors
rapid than the demand to take them
up.
This is made, manifest by the heavy
tide of bank notes out OF the clrcu-.
lation OF the country, reflected In the
current redemption OF these issues at
the United States Treasury and by the
growing movement on the part of the
banks to retire them by means OF de-
post OF lawful money witt, the United
States Treasury. The differences are
plain that the heavy Imports of $780,
600, 600 of foreign gold and the rapid
Issue Of over s5u.0oo,oOo national bank
rotes, which followed the runs on the
banks last fall. to say nothing OF the
various emergency issues OF clearing
house certificates, are now proving
redundant In the country's circulation.
Such result is the invariable se-
quence of financial panic as soon as
normal conditions of confidencesin the
banks begin to re-establish themselves.
Tho development was foreseen with
such confidence that speculative opera
tons in the securities market had been
largely concluded in anticipation aof
the event. The disposition to realize
profits manifest last week, was there
fore normal and to be expected.
After-EfcctsS OF Panic.
odJiyinu xttS deYr,.
towards reaction there has been sonic
renewed influence Of depression in the
contemplation of some OF the after
effects OF the financial crisis now
passed. The weight and volume OF the
return flow OF funds to banking re-
serves are. In themselves, eloquent OF
the contraction OF the needs Of the
circulation and the shrtnknge IN cont
inercial. and industrial activity. Other
signs are abundantly corroborative. Ds-
crease OF bank clearings are the rul-
the country over. Railroad earnings
have fallen off to a degree that brings
into question the rate of future dis
tribution on securities with contingent
| liabilities, while even fixed liabilities are.
brought into doubtful security In the
case OF some OF the weaker properties.
Iron Trade sPnrnlyzed.
Advccs from the iron and steel trade
shows condition Of practical paralS-
| sis to have ensued upon the financial
crisis. although some moderate resump-
ton is reported to have occurred since
The report 10 be published on Tues
I day of this week. of the earnings of
/ the United states Steel Cooperation
flor the quarter ending December 3lst.
is awaited nevertheless, With some
! solicitudc, and the showing to be made
for the current quarter is also subject
tOf anxious surmtSe
notwithstanding the actual existence
! of conditions indicating this heavy
\ contraction OF prosperous activity there
lis not lacking evidence Of hope In
tcarly improvement. The increasing
abundance Of money resources is looked
i to as an effective help to this revival.
i The doubtful element on the side OF
1.-THE money situation Is suggested by the
continued disposition OF large corpora.
i lions to finance their requirements
Il with short time obligations. on which
1 also the interest rate Is Kept high.
A Notwithstanding the material reduc'
4 ton of rates on ordinary loans. The
a simplication of impairment Of credit 70:
a purposes OF corporation borrowing u
1 OF unrclieved scarcity OF capital sup
4 plies for use In fixed investment:
Y makes one of the conservative lnfiu-
Y ences in the hating stendency Whlct
Il was the feature of the Week IN the
y markets 3ff 4 n. e
cLEARINGs FAIRLY HEAVY l!A
4 Decrease From a Year Ago a I'd PC
: .A.x NsfNs