The Richmond Virginian. (Richmond, Va.) 1910-1920, 1916-11-29
us like MONEY
Owl NOT DEAD YET
rDnnncaal Trust IN View York Sends
Prices Down by Radical Ad-
vance In Money Rates
SHEER CASE OF GRAB
LIT Ten Days Ago Banks We're I'm
" CDuraGing Brokers to Get Public TO
81 Takc Their MISREPRESENTATION Inter
cstine and Peculiar.
nv pRoAnAN WALL.

New YORK. Nov est WAS great
!. eay for the banks In Wall street TO-
day. They smashed prices with hVe
per cent money when the brokers
made renewals and as the decline was
not rapid enough, they hit the mar
ket again with per cent money IN
3 che afternoon. The result WAS al
that could be desired by the most
speculative banker Bargains were
made available in many departm ents
and the situation was no doubt taken
ADVANTAGE of 10 the full extent Ihe
close was near bottom.
By way of apology the statement
was made that action OK The Fedsra4
Reserve Board IN warning nanks not
to buy too freely OF the new shorS
term notes to be issued by tho brif'
tsh came Is q surprise Ihe new
stntsynent issued by the board was
nosh,nr more than official sInplinca-
ton OF the snnouncemarE last Wed
nenday The matter was contained
In the Official proceedings Of tie board
A laxt week England and the other
allies now Will have to Issue bonds
backed with the splendid gilt-edged
: collateral that has been held back
because Of It's grea. Intrinsic value
Ii was argued today that the wnr
would have to stop now that Eng
land could not borrow Freely with
out security. Nonsense; England has
I 4 billion dollars of good bonds ard
stocks available for collateraL--Arner-
scan s~cur4ttes and bonds OF neutral
countries that viii fetch all the money
needed n America
Banks on Top.
Tneer Is 10 use wasting space In =
dsacussion OF what individual sfocks
did today. for values were not oonsid-
cred. The banks were on top OF the
market and everything went down in
.ouamon-
There is a great deal of use. how
ever, In discussing the peculiar action
OF the banks. Only RboCt ten days
ago they were inviting brokers 20 Dor
row money on any kind OF collateral
at nominal rates They had planned
at that time. 60 II must be inferred,
from todays petuiant calling Of loans,
10 invest freely IN the British short
term notea
\ These short term notes were to be
repaid at maturity. but how BY the
issues OF other short term notes which
the bank would go through the rou-
tine of purchasing" but actually &C
cepfing in settlement OF the outstand-
ing issue.
Specializing With Public Money.
- BaGK1 SXisL IcE Inc purpcSo ot hHih~
ing money to people who have the
necessary collateral TO secure It's re-
payment They are not entitled to
invest or to speculate with the credits
u their depositor. so long as that
credit can be used In the way II Was
intended TO be used II the banks
had really wanted TO curb speculation
they would have checked the market
from time to time long before this,
As a matter Of fact tho market has
acted in a very conservative mann Ell
when one considers the phsnorn ena,
.sEafninEs. the imitation Of money END
credit and the fact thar this is tht
2@0nly stock market Ia the world. II
u is the dut.- Of the hanks 10 keep their
depositors money for tho use Of
American business men. They have
mo business bnt me- foreign bonds OF
.-ohort term notes
The attempt 70 frighten the board
by INJECTING severe loss upon tens OF
thousands of American investors haf
apparently failed when the mark e.
closed, for people who are carryins
4 stocks now are fully as compel emit "A:
the bankers to decide as TO marke
value And besides. II is scarcely ter
days since the bankers were urgint
brokers to get their customers intc
the market with the cheap money of
fered. Nothing had happened In The
last ten days 10 justify this suddeI
change OF front
What happened today is almos
enough to persuade the people tina,
there really was a money trust anC
that II was not quite dead