The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-03-08
BOTH SIDES HELPLESS
1t Is Thus a Stand-0R in the
Stock Market.
CURRENCY BILLS EFFECT
EngrosSes Attention in Finan-
cial Circles.
CURRENCY BILLS EFFECT

New York, March 7-Professional bear
operators suspended their campaign for
a decline in the stock market today. The
bull contingent. on the other hand, were
| hampered by the continually increasing
closer conditions in the money market,
and by the determined Indifference of the
outside public. In consequence dealings
on the exchange approacher a point OF
stagnation and the movement of prices
was entirely without significance. Atten-
ton among money lenders and capitalists
as We'll as among stock operators Is de-
voted TO the probable effects Of the cur
rency bill when it shall become operative.
AS to the volume of the expansion Of the
currency, opinion is agreed that addi-
tional note issues will be made at once
up TO the par value OF bonds at present
on deposit to secure circulation, which is
slightly over s240, 10000. The 10 per cent
increase thus indicated will be $24, 600 co...
As TO the extent beyond this to which
the expansion is likely to proceed ali is
conjecture, and opinion is exceedingly
varied. On the present national bank
capitalization, which amounts 10 S6O5. 000.
CO. a further note issue is permissible
under the law of $3.50, 900, 600, but the total
amount oE the bonds to be converted
and which are available OF secure circu-
lation is nearly $S40,000.000, and the add
tional capital which may be embarked
in national banks in small cities under
the law makes, possible further extern
sion of circulation as fast as national
bank capital is increased. But this posi-
biity Is purely theoretical The more the
question is canvassed of the possible eff
fects Of operation of the law the more
ii is perceived that hindrances may arise
to taking out additional circulation. In
the first place, the constant advance IN
the price of government bonds may take
up the margin which would leave a
profit in circulation. There Is a question
also Of the ability OF the banks to keep
their notes in circulation They cannot
be counted in the lawful money reserve
required by law and at the same time
they swell the deposit liabilities OF sthe
banks. In consequence, unless an active
demand exists for the use OF currency
in hand-to-hand transactions, the banks
would derive no advantage from keeping
the notes IN their vaults and would send
them in for redemption as fast as r.
ceived On the other hand, even Il the
notes keep in circulation there is the
question OF how far they would serve
TO displace legal tenders, thus facilitating
gold exports. Lastly. there is the cues
ton, OF delay In the preparation OF the
new bonds from purely mechanical diff
cuttes; a condition which may last sew
eral months. since there - no power ia
the treasury department to anticipate the
operation Of the law, by preparing bonds
In advance. With the doubt thus involv-
ed OF the amount Of relief 70 be afforded
10 the money market by the operation
Of the new law. and OF the time when
the relief will be available transactions
on the stock exchange are much cur
tailed. Closing prices OF stocks today
were as follows: