The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-01-06
FINANCIAL SITUATION
Rapid " CLEARING
Premium on Gold Disappearing,
Caused Hopeful
Feeling.
MERCANTILE PAPER DEMAND
Stock Market Remains Firm De
spite the Bad News from
Several Railroads.

= II 4
Several Railroads.
NEW YORK. January s.-The open
ing OF the new year sees disposition
REFLECTED In the financial markets to
turn from the contemplation OF mourn
full yesterdays and to look forward
with hope and confidence to The future.
The conviction is firmly based that
decided Improvement is ahead, but this
leonvistion has been tempered BY some
anxiety over possibly remnant of
unpleasant consequences Of the hnan-
c.al crisis yet to be gone through. Al
special field OF uneasiness was the
provision for the annual settlement in
1.-THE money markets. which was un-
usually heavy. while the resources of
the money market, although rapidly
improving, were still much impaired
The smoothness with which the turn
OF the year was effected went far to
the confidence that steady Improvement
| IN the financial position was to be ex-
ipected henceforward. The call money
rate did not get higher than 20 per
cent. which compares with maximum
OF As per cent in the corresponding
week OF last year and 1 25 per cent. in
the year preceding.
Premium DyvindlinE.
Still more significant Of the growing
| Improvement OF the position was the
rapid dwindling and disappearance OF
the premium on gold. which slgnalized
the first business day OF the new year.
finsurmountable obstacle remained to
! the re esta blishment OF a normal bank
ling position.
\ The London market was so far reas-
sured by this development that rapid
decline ensued in the London discount
irate. and the Bank OF England was
Iconstratned on Thursday to mark down
Its official discount ratio from Z to 6
lrer cent, In order to avoid losing touch
with the money market. The Z per
Icent. bank rate was the signal Of con-
itinucd dstrust IN the outside world
of the American position. and Its aban-
ldonment marks the return OF faith in
the passing OF our crisis. In New York
additional funds have appeared In the
time loan market, and business in that
department has taken on some degree
Or activity. although interest rates con-
tinue high.
4 Demand for Paper.
i Growing demand for high-grade
mercantile paper also offers promise Of
relief from one Of the most threaten
Ing sources of embarrassment to come.
growing out Of the heavy maturities
failing due in that department. from
thine to time. The shrinkage in buying
power, which has gone with the fnan-
Icial upheaval, the slowness OF collec-
t1ons. and the stringency Of the money
4 market, which offered small prospect
of adequate accommodation for the
extension of needed credits, threatened
a combination of circumstances from
which disastrous consequences were
Threaded.
Credit experts in the New York
banks are more hopeful of needed ac-
lcommodation being Forthcoming to IA :
n ci!itate the process of liquidation. which
is recognized necessity, to some ex-
Itent, In commercial affairs. and which
1t Is now hoped may be conducted with
Ideltberat!on and good order The pub
lication OF the bank statement at the
close OF the week disclosed tho free
inflow of currency to New York for the
week. This development is Of the ut
most Importance. as marking the pass
Ing Of the feeling OF distrust OF the
h New . rE banking position and prom
1slng q rapid establishment OF the
normal position. 1t, thus happens that
4 the financial markets have been dis
posed to ignore some immediate UNI
favorable factors in affairs, cheered
by the Frightening financial prospect.
4 Market Is Firm.
i a striking example OF this was AZ.
iorded IN the stock market Of the first
day OF the new, year. There conversed
on this market the news of the ap-
polntme mt OF receivers for the Seaboard
. Air Line Railway and the reports from
washington OF an intended suit by tl,e
i government to compel the dissolution
a OF the Hartman railroad merger. The
market wayered under this shock hi
the effect was temporary. and strona
recovery ensued before e6end Of ths
, Day. The course of railroad earnings
a reported was another restraining ia to,
on immoderate enthusiasm over syalues
!, several OF the great railroad systems
including notably the Atchison and the
|. pennsylvania. showing a heavy inroaf
OF last years level OF net earnings q
the return for November. owing to The
7 neaVy expansion of operating expenses
: business Falling Off. q
Railroad traffic officials IN renor+}n.
the more recent course of traffic make
! candid acknowledgment OF the rani.
4 Isnrlnkage In the movement OF n,erchan
disc or all descriptions, except grain
and of their inability to discern a prob
able source Of early Improvement.
: The bond market is scanned wit,
{ some attention and interest from ia
!, 70 day to detect evidence OF renewe.
!, flow OF floating capital into invest
: ments. Some increase OF activity wa
: d1scoverable last week. but the ;den1a n,
twas moderate in spite Of the Iare,
! disbursements of the dividends an,
y interest to supply.a fund for reInycst
a lment.