The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-12-07
INTEREST CENTERs
. On BANK STATEMENT
REMARKABLE STRENGTH OF
SHORT TERM NOTES EXCITE
CURIOSITY.
JUSTIFY CONFIDENCE
FIGURES SHOW FINANCIAL POSI-
TToN CAPABLE OF EASY ADJ
AUTOMATICALLY IN
STOCK FAIRLY ACTIVE.
JUSTIFY CONFIDENCE

NEW YORK, Dec. "A good deal
OF Wall strees interest centered today
on the bank statement which was pub
iishcd 81 the close Of the seek mar
ket-
The manifestations In call money
during the week had deferred good
many traders from following The rts~
ms movement OF the share list, be-
caase II was thought that the hInsta
fioas Of the bank position would inter
fers with Constructive operations IN
stocks This rarely happens when
general business Is declining as & Is
now. and causing lesser iemard for
cre@st with a propect Of large aCcunu~
sat1oHs ssf cash after ta4= tsFR 81 the
year Il is true that cheap n oney re-
saNtag from poor business - not
enough of itself 10 promote rise In
stocks, bat relatively firm money con-
6iuons after a iong period Of financial
and business liquidation are rot apt to
he a barrier 10 efforts on the construc-
tive ssds OF quoted values
kscn Curiosity.
Nevertheless. the f5narcial com
ma5sty had felt a keen curiosity about
the weekly bank exhibit because Of the
remarkable strength Of short term
notes Ia the past fortnight, when
money rates frightened, The short
note market n not strong when banks
are pressed with demands for credit
which they are unable 10 meet with
cut li9nidatinG investments in note is
sues There has been no such liQuida-
ton. but on the contrary further pur-
chasing has been gong on for the &C
count OF banking Institutions.
The bank figures justified the con-
80 to-. y. 81 IN
financial position was capable OF easy
adjustment through the simple pro-
cess OF raising the price OF money to
terms which would attract outside
lenders and cause n reduction of de-
posts for the account Of these tenders
According - the actual return loans
decreased more than S51. 600, 600. de-
ports declining In almost equal
amount, vita a resultant reduction ri
more than s12.00o.000 In reserve re-
quirements.
Jolted Out of Inertia.
Dealings IN stocks were on n fairly
active scale ror Saturday, especially
in view OF the stagnation which has
been prevalent. The relative briskness
OF business was rather encouraging as
q continuation OF the more animated
movement which began n few days
ago II suggs sted that the market
might have been ;olted out of It's in
ertia with enough effectiveness to lend
new significance TO Its course In the
next week or so. The half session was
two-xided, but the list offered resist
nnce to selling pressure, although
there was not much net charpe for the
day, and little Of the first hour gain
was retained In most directions.
American tobacco displayei persistent
strength and again there was a dis
play of aggressive vigor in INTERIOR
u
New Haven shares showed weakness
but did not exercise an unsattling In
auence.
Professional esales of a beSrish ma
ture were stimulated by the iudica-
tions that towards the weekend stocks
which shovel few points profit were
being realized upon. AT he same
ly after a long fall Of prices, and a
period of staFnation, has such profit
taking to contend with In the early
stage. If the advance is not based on
any meritorious features of the out
look. It has difficulty In overcoming
these sales, but IL the rise establishes
itself the early sellers are always
quick to recover their position.
Feature of Week.
The renewal of operations for the
advance was the feature OF the stock
market week. II was inspired by the
evidence fur aished of a complete state
Of liquidation, and undoubtedly has
sought to inaugurate q process OF dis
counting the favorable turn of senti-
ment and opinion which may result
from the early enactment Of currency
legislation. 1t appears that a new
banking and currency law is likely to
be placed on the statute books early in
January. and irrespective of rs merits
and defects it will provide something
OF momentoas novelty for banking and
business interests to consider.
Wall street liz more inclined at the
moment to consider this than to take
note OF anything else in the political
program All the notorious trust
busters are swarrning at Washington
with prospectusces of radical iegisa-
ton for the elaboration OF the Sher-
man law but there is a feeling in some
OF the thoughtful circles Of business
and finance that President Wilson is
not disposed to promote drastic ex-
cesxes of statutory enactment in this
respect The presidents annual ad-
dress at the practical aopening of the
regular sit n OF congress did not
contain much that was specific on any
subject but what was said about gov
eminent control of business permitted
The hope that the administration might
impose restraints on the law-maling
extremists.
Foreign adHices during the week
were unfavorable, because OF the
cabinet crisis in France. The foreign
stock markets displayed a reassur!ng
degree Of ftrmness and sooner or later
II is probable that foreign financial
affairs will begin to evince distinct
signs OF betterment.