The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-27

CASH IN THE BANKS
BY THOMAS c. snoTwsLL.

MEN AOfkh, Jan. @e.~-~Anno ounce
sGent ny the Laeh&wanna kaiirvad
Company that IL would Issue slz,Vev,-
oeo bar OF new stock tor construction
work in the State Of Pennsylvania,
ga.e the General market a slFn under-
tone TO-DAY. because IL led spectators
10 hope tor "neluns" In other dlrec-
lions. Lackawanna stock sod UP ten
points 10 saa, which, with the suhsi-
diaries, makes the original Lacha-
wanna stock the equivalent of ssio
share, he other surprising feature
OF the day Was q Wild upneaNel IN
tobacco shares. American looacco
advanced &. points. making rise OF
40 points in Two days q. W. iieime
stock moved up as, L3gsette &
Myers, 5, and Z. Loriiiard. al-2. The
topacco shares on the curb market
were also strong. British American
approaching its previous high rccoru.
and United cigar Stores showing
strength for TIC nrst time in weeks.
Now Yor~ Central Lsads-
or The standard issues New York
Central was i.aoeT, gaining two points
GA the day ond closing at the high
price. ST. Paul was a puzzle for the
traders. They started In to sell 1T,
natt found u good demand for the is
sue ana withdrew 50 That the price
show ed a decline Of only "a point for
the day. II is generally believed that
The stock has discounted the reduc-
ton OF it's dividend.
Union Paeinc barely held its own
under "a heavy volume of trading 1t
ts noted that the stock is In active de-
mand in the loan crowd and 1t Is
possible that 1t has been oversold BY
the wrong people, One of the most
sktiifui traders in the street was re-
ported today to be covering his short
commitments, preparing for A swing ON
the long side OF the market,
The feature OF the market that Is
Worrying the bears Ia It's stability
under the flood of bad Developments
that has struck 1t this week.
Reduction of the ST Paul dividend.
demand by locomotive engineers for
hipher wages, announcements that the
Eepaaiic iron and Steel Company did
not earn its dividend in the last half
of 1911. and a temporary let up In the
demand for steel, were among these
influences.
Cash in Banks.
On the other hand there is il sur
prising accumulation OF cash III the
banks. the gain for this week show
ing fully sl2.6ee.oon. Preparations are
under way for gold shipments should
the rate of exchange have a slight
further advance. Banks In ali see
tons OF the country are overlooking
with money. This accumulation OF
money in not due SO much to the fact
that business is duli as 1t Is to the
fact that ordinary citizens have quit
rarr,ing so much cash in their pockets
as they did during boom times They
have either spent their pocket money
or have put 1t IN the bank for fear
they Will spend IT.
Railroads in the Northwest have
suffered much from the snow this
winter. and poor reports are expect
ed for January. but announcement to-
day that the threshing OF wheat has
been resumed in Alberta. shows that
there In considerable business yet To
be done In connection with the last
harvest.
Steel authorities said today that the
advance in wire prices had excited "A
better demand. This is probably due
to the fact that dealers are prepaf-
ing for tho demand for fencing that
will make Its appearance in the
spring.
After the Octopus.
Although congressional commit
tee Was busy with the money octopus,
the Street displayed no alarm. 1t lis
generally believed that Samuel Tn
termyer will be counsel for the COM
ynitfee II real investigation In made.
and that he, being ambitious for po-
iifieal hanara. ssill-SteAH the-ff testt-
cation along such lines as to make
ii good thing for both the public
and the banks. Banks are doing many
things contrary TO the best judgment
OF the great financiers. who feel,
however that the necessities of bust
ness compel present practices.
An officer Of the United Cigar Stores
said today that selling OF the stock
OF that com pany was undoubtedly due
10 liquidation by the leading interests
In the American Tobacco Company.
Strength of New York Cestrai and
its officiai announcement that plans
are under way for merging the Lake
Shore and Michigan Central with the
parent company. have caused many
persons TO wonder whether the chi
cago and Northwestern will be IN
cluded In the merger.
intimations are dropped from time
70 time that the Northwestern IN
ANXIOUS to get through Ia the Pacific
coast over it's own lines. II that were
done New York Central would be an
ocean to ocean railroad. ST. Paul y
experiences has chilled enthusiasm for
inch an enterprise in the immediate
future.
In the Street: Number .of shares
+ sniVs -ssssas. f&1..Tao2 II year agn: a..
lis.
Par value Of bonds sold today. s3.-
10000. a year ago, s2.sss,o0e.
New York Money Market