The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-05
EXPLANATION OF
CASH SHORTAGE
CASADIAy EXPORTS pHIfADEL.
PHIA AND BOSTON hanks
THE REASON
LONDON SENDING GOLD
ARGENTINE GETS fTS SUPPLY
FROM EUROPE INSTEAD
OF NEW roRK---REs-
NEWALA
LONDON SENDING GOLD
~ THOMAS O, snoTwsLL


sues were dun and heavy in Wall
Erect today, but speetaiues were
strong. WabasE common and the
bends were active, Net changes were
not important Dealings were purely
professional
In the early part Of the day Same
selling was caneed by the remarkably
bad bank statement Of Saturday,
which showed q loss In cash Of nearly
s20.e90.oeo that could not be account-
ID for oy the known movements Of
money. A further loss Ia cash was
reported by the banks ON todays
movements Of money. The hrst
thought was that somebody was
hoardnr money. bat investigation dis
closed possible reasons for the &tna-
ton. The exports 10 Canada. which
have amounted to about $4,000, 900.
have net been reflected In previous
etateiosnta
Furthermore the banks report that
nearby cities such as Boaton and
Philadelphia. where heavy interest
payments are made On tho first OF
December, have permitted their cash
balances 10 remain ia New York until
ths last moment, dealing them out on
the last day Of November for uae tbs
first II December. This might ao-
count for several millions more. In
addition there have been shipments to
the West, whore iAgs Sums ara stu
In demand for crop moving.
Brokers' Renewable.
One effect of tbs loas Of cash was .
rate OF Ave per cant for broksra' re-
newals. THIS rate did not get balow
Four ger cant. all day. The advance
In Interest rates In New York has had
the result Of stopping exports to Ar
gentine. the gold now being eept from
London instead Of New York. AZ this
eeascn the New York public In par
ucu!aT carries more actual cash In
pocket, and this would account for
several millioi. dollars. Thorn in
nothing in tho situation to prove that
anybody In boarding and as Al Argu-
nlent against The market, tbs bod bank
statenes it failed. although the tact ro-
mains that tbs banks ars under the
legal reserve tor the nrst TINA aimee
1907. BANKS in the South snd Md
Ole Nest are finding 1t difficult to
make some collections OWING to the
log price Of cotton and the shortage
Of the grain crops.
Wabash WAS the fayortts mystery
In today's market The bonds 9erv
active and strong. Several rumors
were aaoat- One said that Pennsyl-
vauia railroad Company had pur.
"a
Another nsnisd Eew York Central a.
the purchaser. Erie was also men
TONED. at4o II any road has bought
Wabash or any part Of it Eric would
seem to he the logical purchaser.
interest In Tobacco.
Both New York Central and Penn
syivanla have their connections into
ri isbarg. while Erie hAS 70 reach that
city over the tracks az othsr COM
paaies The Wabash system could 60
nse3 by the Ere a. IN extension. and
line into pittsburs u necessary.
TOBACCO securities attracted mu.h
attention. Counting the civtdand
American Tobacco preferred sold At
= new high price for the year. Ga
the curb the United Cigar Stores sold
up TO eco, and L4gSet. end Myers
advance from lss to goo. Eurrors
s,-Tafss Of u ''n4lou~ In coun Action with
the REORGANIZATION Ut the United Cigar
Storas Company. There y also talk
q an extra cash dividend on Amsrt-
can Tobacco common.
Assembly Of Congress caused Fro.
festona's 10 restrict their operations
Tor they ars expecting ssvsraJ VIC
lent speeches ~ radicals almost ina-
mediatsly.
Kssrct L. exprsased that +he 6tan.
ley committee did not insist on an in
vestisatson Of ita acts. The street
may BE- mistaken. bat thsre L. an TIM
precision that such an invest cation
would bring out some remarkn bic
1aS u In regard to the Anti Trust
League. There 10 = belief that such
sn Investigation would explain much
that - mysterious about ths settling OF
gteel last summer.
In the Street: Numbse Of shares
sold to-day. 3s1.sGs: year AFRO,
3se.l56. Par value Of bonds sold TO-
DAY. Ss.oss,6c0, . year ago s1.1ss,-
600.