The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-01
Financial Situation Not Consid-
cred 10 Be as Weak as
1t Looks.
EUROPEAN NEWS PROMISING
Substantially All Developments
OF Financial Sort Confined
to Money Market.
Especial to The Times Dispatch

of resentment on the part OF commls
sion houses that they had not peen
treated fairly By lending Institutions
the tendency of prices % stocks To-
day was 10 advance. Doubtless 10
some extent the hurry in money or the
day before was due 10 100 great
Lostponement in the matter Of pro-
V!ding for their monetary needs oS
stock market firms. Still money -
undoubtedly tight, and the uniform eH-
pectatlon to-day WAS for a poor bank
statement. Logically this should nave
produced some selling of stocks. ana
that Il did not do 50 is probably an
Indication that the financial situation
is not after all considered 10 be az
weak As IL looks. Also European news
to-day was more encouraging
Anticipations a. To the tank state
ment were not disappointed. owing 10
loss in cash. which was even greater
.han was indicated on Friday. and be-
cause OF only a moderate reduction
an bank loans, an actual dencit o.
$1,000, 900 was shown IN the average
bank surplus and $5.05s.000 in the
actual surplus. It -. OF course, realized
that bank statements for the week
covering the end Of month, reject
Ihs financial disDurse ments OF the
monthly settlements much more than
they do the financial receipts Proper
correction viii be made in the sue
Ceedlng bank return.
Substantially al developments OF
financial sort last week were confined
10 the money market The period was
shortened by the Thanksgiving ho!I-
day. and transactions in the stock
market were each day OF small vol
ums. The Balkan war was contlnually
less Of factor not because OF any
striking news concerning IT, either
.svora lie o. unfavOraol.. but because
II growing consensus on general
grounds that the war was nearing IL
md. and that its consequences as af-
Iecting other European countries
would not involve a further struggle
Nothing occurred 70 change the pre-
valling views OF the financial com
nlunity regarding tariff revision. and
thu mass OF kindred political subjects.
But the prospect has become more den
mite that the Democratic party cannot
afford 70 have does not want TO have
and cannot have whether II wants to
or not any radical Legislation on the
tariff question
There was no change in the extreme
ly satisfactory business condition or
the brilliant outlook for the future
The commercial agencies. IN their sum-
activity in the business world Retail
trade was helped somewhat b. the
colder weather, and while bank clear
ings. or account OF the holiday. were
less than they were for the preceding
week they Increased s per cent over
the corresponding week OF 1911. In
New York City exchanges were %
per cent larger than they were In
1911. In the markets. commercially. the
most important was the rise in cot
ton. The nsrke; rose about Is cents.
The most notable thing about the
money market was that in spite OF It's
sustained strength. there was no ia-i
n stocks The advance to 20 per cent
for call money on Friday was due 10
combination OF several specific causes;
one the fact that loans made on that
day carried over the end OF the week
ana also over the END OF the month.
when large financial disbursements
mad 20 be made.
another was the upspringing OF
demand for money from Canada. which
mas heretofore RETAINED from asking
for funds from this centre. and third
WAS the calling OF loans by many IN
terror banks, and an indisposition on
the part Of other institutions 10 lend
money at ali. because OF the desire
on the part OF these institutions 1
keep themselves strong pending an
expected call by the comptroller OF the
currency for report OF conditions.
Even so. il must be admitted that
the situation was aggravated b. the
greed OF certain local banking insti-
buttons which displayed Itself in the
manner 10 which reference has already
been made. 1t is TO De hoped in the
general interest of the banking com
r1unity whose reputation is peculiarly
al stake just now. that no further
ground will be afforded for adverse
criticism in this regard: and IL is also
70 be hoped that the Secretary Of the
Treasury will bestir himself and de-
Icsit some public money in the banks.
4 20 per cent rate for money. with
the government in possession OF such
large amount Of idle funds as !; has
at present. is no more OF less than a
public outrage.
70 the extraordinary favorable re-
ports OF the big railroad systems Cor
the month Of October. there were
added others to-day OF quite as good
character. Readings statement was
the most surprising. showing an in
crease Of si.036.000 in surplus after all
charges. Lsckawanna reported an In
crease OF S559,0O0 in gross and SS72.
900 in net earnings
New Ravens gross increased S519.-
900. and its net sssg0c0. and Chicagt
and Northwestern reported increases
OF sI.eo5.05o. and s5Si.00c in gross and
net respectively. There has seldom. u
ever. been a time when the biz sys-
tens report such great gains.
From the middle OF July up TO to-day
every report OF the American Rail
way Association has shown an in
creased demand for cars In the middle
OF July there was a net surplus %
ee0c0 cars. and this was gradually
reduced until in the FIRST fortnight 81
september the surplus was converted
to a net shortage OF $500 cars. Stesdi-
IL the net shortage increased. until OF
November u stood s7.fs3. To-day
tho association reported for the fort
night ended November 20. n net short
axe of sI.1I2 cars. The reduction ~
slight. almost immstcrial. except that
- indicates that the pressure on tho
railroads has not become greater IN
the month just closed There H. stiii
. 49, Ito. a.~r.~H rn~ coal cara ana