The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-03-11
FINANCIAL AND COMMERCIAL,
SATURDAY. March 10.

Almost from the start to-day the stock mar
ket improved. The demand for stocks. though
moderate. was chiefly to cover shorts. and II
increased as IL became apparent that there
were very few stocks for sale when the short
interest stopped selling and became a buyer.
The manifestation OF caution by tho bears was
due In part to prospects that the Finance bill
will be passed BY the House early next week.
Tn prevailing impression in the speculative
community has been that the enactment OF the
pending finance measure will be followed by an
important imitation OF the currency through
an increase In the volume OF national bank
notes. A careful study OF the measure In con-
nection with existing laws governing the nn-
tional bank system suggests that the banks will
be slow to increase their circulation. except up
tothe par OF the bonds already deposited to se-
cure the same. because OF the prohibition
against retiring more than $4,000. 900 OF bank
notes a month. OF course new bank In sparsely
settled localities will be established and doubt
less take out circulation at the same time
those who organize such banks can be de-
pended upon not to engage In an operation that
will cheaper money In their respective locali-
ties.
The most significant development this week
has been the appearance Of a domestic bank
ing house a. the representative OF the Bank Of
England to receive subscriptions to the new
British war loan. Within the last two years
this country has quietly lent Europe many
millions Of dollars through the machinery OF
the foreign exchange market. Those
operations have foroshadowed the position
New York Is Tx ely to attain In the worlds
financial system. Another indication was the
~refundlng OF the Mexican loan which was
largely held abroad. We now have an Ameri-
can bankins house that is practically the agent
OF the English Government In floating British
Consols before American investors.
1t can hardly be said that Great Britain IL
seeking to borrow money here. The fact 10
that the amount OF money In this country
seeking an undoubted security Is so large that
the Bank OF England. acting for the British
Government. was constrained to make an In
ternational issue OF the new loan.
The indications are that II subscriptions
should be received here for a week the amount
Of Consols taken would be very large. But the
subscription books have practically been
closed both here and In London because OF
the overwhelming applications for the new
Consols. Fears that subscriptions TO the
bonds here will affect the foreign exchange
market are groundless. since payments for the
amour that may be allotted here are scattered
over the remainder OF the year. Besides.
Europe is. according TO all accounts, still a
debtor TO this country on commercial trans
actions.
The weekly statement OF averages OF the A.
ISOLATED Banks shows a loss Of over sS,0O0.0 900
In lawful money and an increase in loans OF
about the same amount. Tit deposits should
therefore remain practically unchanged The
statement. however. as for some weeks past.
has not proved. the deposits showing
an Increase OF nearly $5OO,oO0. The net
result brings the surplus reserve down 10
a. ara nno Tbo ircra,aa in lo,na "a oaner-