The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-02-11
FREIGHT CONGESTION
HURTfUl TO BUSINESS
Enough EXPORT Material At Seaboard
to Furnish CarSocs For Two Trips
to All Available ships.
WILL FURNISH REAL TEST.
Conveying of Fleet of Merchantmen
from Virginia Capcs To Europe VIII
show Whether Or Not German
Campaign Is Effective.
Nv BROADAN WALL

New York, Feb. lo.--The actual
bank statement today showed de-
crease in net demand deposits OF tlo4'-
1000, a decrease in loans OF s7s,-
100000. and a decrease In Surplus OF
sl.0l0,Ts0.
The average statement showed net
demand deposits decreased s63,o26,-
eco loans decreased $4o.ST9.0oo, and
surplus decreased sS.lil.I2o.
These large figures are not alto
ge;her explained ny the loan move
nlents OF money. but a bad statement
had been expected. One feature OF
recent weeks has been the rapid trans
fer OF bank resources from tire cities
NJ the country TO the small towns and
oUu:r% villages. There has also been
considerable withdrawal OF cash in
New York s~ty by persons who have
been ma Ie nervous by the war talk.
This withdrawal has even touched the
savings banks 20 4 small extent, but
mas not amounted to enough 70 be
considered serious.
a the stock market about the only
business consisted Of evening up OF a
few short contra It's over the holidays,
4 Real Test Coming
Sinking Of several additional ships
was received without any show OF ex-
able that the only reason any shorts
covered at all. was the announcement
that a merchant fleet is TO be con-
yoyed from the Virginia capes to
England. This will give the German
blockade real test for II il is eff
fectite this feet Will offer a shining
mark. Reports that the United States
government will convoy American
ships or al least will encourage them
TO arm was another sustaining in
fuence.
Public service stocks were heavy
unaer Influence OF further brr:;n II
People Gas.
The money market is icing watched
with great anxiety By important mar
fet interests because there is such
congestion Of export freight at sea
potts Probably enough freight IS al
ready 3 terminals TO supply TWO COM
ple'" round-trip voyages for sli ships
available, American manufacturers
&c; their money when the stuff is on
alI 9-b board. but while il lies on rail
road trains and piers II has 10 30
financed by the Americans This il
causing a congestion Of loans TO the
corporations not that the corporations
arc perfectly good for the money, but
hat il is liable 10 send rates up le-
ultimately. Such thing would be
a sad blow to tho fnanciers who are
In the habit Of having money rates up
only when The public has the stocks.
Cuts Down Earnings.
Not only does this congestion OF
freight affect the money market, but
il cuts down the reported earnings OF
manufacturing concerns. While the
goods may be actually sold and on the
cars for delivery the money cannot
lie counted until received. Further
more, II injuries the railroads by tie
ing ~ their cars and robbing them
of rolling stock. When one considers
that in the course OF business in the
United States the average freight car
is in motion earning money for its
owners only twenty-four minutes q
day any further inaction becomes SER
iouS,
Bankers call attention to another
important matter which Is that the
>50o, 900, 600 loan proposed by the
American government has nothing to
DO with the coming war preparations
The government Is running behind to
Chat extent or business already under
taken and whatever preparations for
q war with Germany may cost must
he financed in the future. Not less
than a billion dollars viii be neces-
ssTy for preparations only begun, even
though not shot should he fired
How great the cost Of war may be
IL illustrated by the fact that the
house o. commons is about to vote an
additional public credit of s2T5o, 600
600. The war is costing Great Brita tr
81 eco q minute.