The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-11

NEW YORK. March 10.-Almost from
the start the stock market improved today.
The demand for stocks, though moderate,
was chiefly to cover shorts, and it increased
as it became apparent that there were very
few stocks for sale when the short interest
stopped selling and became buyer. The
manifestation of caution by the bears was
due in part TO prospects that the finance
bill be passed by the House early next
week. The 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.
The rally in stock values today was
sharpest in Sugar Refining. in Peoples Gas,
in Brooklyn Rapid Transit, ard in Steel
and Wire. The market was not active, and
the bulk Of the trading was by profess
SIGNALS as has been the case all the week
The manner in which the market rallied
supported the view that began TO obtain
yesterday that the selling for short ac-
count has been INDUCED in to a degree that
will ensure a reaction.
The most significant development this
week has been the appearance Of domes-
tic banking house as the representative of
the Bank of England to receive subserip-
tons 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 ex-
change market. Those operations have
foreshadoved the position New York is
likely to attain in the worlds financial
system. Another indication was the re-
funding of the Mexican loan which was
largely held abroad. New York now has
an American banking house that is prac-
tlcally the agent OF the English Govern
nent In floating British consols before
American investors. 1t can hardly be said
that Great Britain is seeking to borrow
money here. The fact is that the amount
of money in this country seeking an IN
doubted security is so large that the Bank
Of England. acting for the British Govern
ment, was constrained to make an interna-
tional issue of the new loan.
The indications are that if 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 ap
plicRtions for the new consols. Fears that
subscriptions to the bonds here will af
feet the foreign exchange market are
groundless, since payments for the
amount that may be allotted here are
scattered over the remainder OF the year.
Besides, Europe is, according to all ac-
counts, still debtor to this country on
commercial transactions.
The weekly statement of averages Of
the associated banks shows a loss of over
IS 600. 600 in lawful money and an increase ]
In loans OF about the same amount. De- |
posits, however, showed an increase of
nearly $500 900. The net result brings the |
surplus reserve down to S5,676, 600. The |
increase IN loans is generally attributed
TO the purchases by local banks and bank
ers of Government bonds for account of
dealers who contemplate organizing ma
tional banks as soon as the finance bill
becomes a law. The demand for accom-
modations from this quarter Will obviously |
slacken in the near future.