The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-02-24
Selling Off Causes Great uncasi-
ness, Although the Resist
ance Was Strong.
RAILWAY EARNINGS FALL OFF
Government Calling in Money
from Banks in Order to Meet
Revenue Deficit.

NEW YORK. February 2s.-Last
weeks stock ana bond markets were
kept unsettled by some very drastic
liquidation In special securities. which
resulted in acute weakness at those
points and aroused considerable APP
prahension as to the causes which
might lie behind this urgent selling.
The general list OF securities. neverthe-
less showed good resistance to the
sympathetic effect Of these points OF
weakness. and reflected the needs Of
an uncovered bear account, which was
rebuying stocks previously sold. The
character VI this buying was pretty
clearly revealed In the action OF stocks
when news unfayorably affecting them,
but which had been definitely pre-
dicted, was published. These events
were followed by upward movements
in-the stocks affected. The general list
was inclined to act in the same way
with Developments in the general situ-
able. thus demonstrating an oyersoll
condition of the market
At the isame time the course OF
events will 90 regarded as offering
evidence OF check to the movement
Of contraction in general business and
industry. leaving room for estimates
Of the limits OF the depression and va
rious opinions OF the future course OF
affairs. The shifting movement OF Sc.
curities' prices ana the contest between
differing speculative forces In the mar
ket were an accurate index Of the con-
flicttng views over the future.
Small Pathway EarninEs.
fha oiI-{,p ~ ~ .,rnsttas
revival OF Investment demand for secu-
rlties, some disappointment was felt
over the effect Of tho New York city
bond sale, the success OF which was
REGARDED as demonstration of the
available supplies Of capital for safe
Investment. attractive rates, or return.
The general bond market, nevertheless.
was not stimulated by this showing
and gave Evidence Of the opposi1s in
fluence OF the large inroads OH earn
lngs OF corporations especially OF tie
railroads, whicts have resulted from
the contraction in business and In
dustry.
In money some hardening tendency
was perceptible, and raised the question
whether the limits OF the decline In in
terest rates had been reached.
Bearing on the outlook. the state OF
the government finances has come in
for discussion, as they may affect the
money market next fall, when the usual
demand for crop-moving purposes shall
set in. United States Treasury opera
lions for relief at that time have come
to be largely relied on as an estab-
lished custom.
Government Withdrawals.
AT present the condition Is compli-
Gated by the extraordinary measures
OF relief taken last fall. when all avail
able government funds were placed on
deposit with the national banks to
stay tho panic. The governments ne
cessities now are involved by the large
current monthly deficit In the revenues
and the maturity on August LIST Of the
3 per cent. Spanish War loan and later
OF the Temporary certificates put out
by the Treasury as an emergency
measure during the financial crisis.
Large Withdrawals Of government
deposits from the banks seem 10
indicate. therefore. as necessity and
depletion of the usual resources Of
rellef for the autumn money market,
The decline in railroad earnings has
Drought forward the subject of wage
reductions, and attention Is focused
On the question by the letter Of Pres
laent Roosevelt to the Commissioners
OF Labor with instructions to inyesti-
gate the conditions. The moderate
improve ment In the demand for steel
products has been accompanied by
great dizziness in all branches OF that
INDUSTRY. The copper market has been
q centre Of depression.
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