Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-03-25
"A PER CENT MONEY RATE
IS CAUSE OF BAD BREAK
|i'umor That Reserve Bank Would
'akc Charge of Funds Also
Disturbing Influence.
HY uRutDtN >y.It
NEW YORK N,r,.,, ., ~,

NEW YORK. March 3i-.AInncy "a, IL
per cent. combined with the fac, tina;
W., ne marhGt had been rising rapidly.
- rna, about bad break in Wa.i
800 stronE ana active. with several
issmcS making new high records Re.
da% H. we're at per cent. About mid
uni!, INC rate was advanced 10 5 per
n,., ma considerable profit tax ing
,na Ill, us appearance. From then 10
tic m .oTs l"G rate adynne.d ana
the lowest OF tho day, aud trading
WAS active.
MAJ the Federal reserve bank was
planning to take charge If all money
ui ala" , tor speculative - "sc.S. tumor
ne"eh effort would be made In the
mouse TO impose "a tax on the dcciurn-
, Ion OF stock dividends. This rumur
mat IN tho senate decision had been
Itucntd TO attempt no taxation OF stock
d1ividehds. Report also came from
ports because OF the adverse cS,
chanEe rates between that country and
America.
Suspected German Riot.
TeitEraphie communication between
was reported TO Nc in a state OF In
,,,"rrupiion. Many traders. therefore,
WAS again In :, riot.
statements made u, tho hearing on
rates before tho Interstate Commerce
Commission may have had some effect
On the railroad stocks. but class
they acted better than Ia" industrials.
'f course. they, were due TO act better,
because they had had no sharp adj
vance The demand made In behalf OF
shippers that in fixing valuations III.
BOOK statements OF the companies be
ignored is not matter OF any i'm
IportanCc. II is well understood every
where that n" railroad could be re-
produced for its book value. The oniT
a D.. M ~ l,aT
over that book value is 10 bc recorded
as the rate-mak!nE basis
Strength Of sterling.
The strength Of sterling seemed 10
IN Germany. Montreal exchange reu to
premium OF "a per cent. which COM
pArcs with ii}3 per cent IA fcnTuary
Iinoncy do not explain this situation.
~ must be- the influence OF that moon
shine" gold.
he market were arguing tonight that
there could be nothing serious, because
10 break had been so lu'ck. I'M
|dato amy important lines they would
llayo dono !; cautiously. The market
acted as though some strong Interests
lower level SO quickly as possible with
on, losing stocks. The list acted, az
he professionals viewed IL, Ike "a on!.
market having Il healthy reaction
Motors Reach High Mark.
Both General Motors and Stutz sold
|at high record prices. the former ~
|!!o and tho latter ~ 2JV. t'cncrt!
Motors 'oroko forty points In the ant
|crnoon and showed bui little recovery:
traders still persist in going short 81
bOth old ana new General Motors.
Something like SJoo. G"c.Jbo was paid
60 the government. IN, taxes on MarIh
81. Most OF the checks were not Ger
In fi,i and for that reason tho payments
i,d no influence on the money markei
|unt.l actually Cashed By The govern
|,ncnt Tina. is why such a drain IS
being made on the banks Just nov
Cndcr leadership Of standard on. OF
Snw Jersey, which goes on IN. cX-
|changr tomorrow. and which startcn
today wnh rise OF ton points the on
shares were huoyant In the ;rst hoNr.
N.ricnn Petroleum rose more than
e!Ih, points, Pan American three ana nc,
Texas oil five and one-h aIt. n IN"
|brcalt Mexican went down tnirtech
toints. Pan AmericHn nine. and Texas
|h..ecn Tao fluctuations had no rc!h-
Ton. To the values. hut Werc quo ch-
,ircI; 10 the money market.