Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-09-04
Henry Clews Says Currency
Movement Has Bcgun---New
York Banks Taxed
AN INDEMNITY WAS FEARED
Settlement of War Without Payment
Of Large Indemnity Was Great Re-
lief to Financial Centers Just at This
Time--This Money Available For
Commercial Purposes.

New York, Sept. 1.-TWO important
| influences of the recent enthusiasm and
strength In the stock market have be-
come established facts: IL formal
agreement between Japan and Russia
for peace has been reached and the
great grain crops OF the country have
been secured and the early favorable
predictions in the latter instance have
more than been justified. Both these
influences will remain important fun
dameatal factors in the financial stu
alton for some time; but their formal
contamination removes them as favor
able Influences from the immediate
speculative situation---renders them, In
fact. bases for profit-taking sales by
the professional contingent in the
market.
The monetary situation in co,,nec-
ton with the palpably high range of
current quotations for securities be-
comes the pivotal influence OF the i'm
mediate situation. The currency
movement to the west this week has
been on a sufficient scale to indicate
at this early date that New York
bank resources will be severely taxed
during the next few weeks; and that
any unusual demand for banking ac-
commodaton resulting from spacula-
tive activity would mean an advance
In money sufficient to constitute
distinctly adverse market factor.
Already there has been a moderate
calling I'm Of Wall street funds by
banks more particularly identified with
mercantile interests These banks find
an increased demand for accommoda-
ton in their own particular fields; they
find manufacturers and distributors
making active preparations for a year
of unusual activity and prosperity.
This active and legitimate demand for
money, being simultaneous with the
recall of funds from New York by the
western and southern banks, could
hardly have failed to provoke acute
stringency had the war settlement not
been on an ex-indemnity basis. The
money market Is In these days Of In
Simultaneous communication a worlds
market, London and Paris and Rer-
lin and New York and other world CEN
ters rising and falling in unison and
funds like water finding natural
level. Foreign bankers had been
watching the peace negotiations with
the view of providing Russia with
funds for indemnity, and while Russia
and Japan will both be borrowers In
the near future their transactions are
not now Of the urgent description and
will be conducted with a view of Sc
curing funds ON a favorable money
market--which will not be for two
months or so.
The net result seems, therefore, that
money accumulated for the payment
of possible indemnity will become in
part available as source Of relief 20
New York; and the weakness of ster-
ling exchange indicates that with any
substantial advance in money rates
here British and French money would
promptly become available, with
view of anticipating the large exports
of American products.
AS already intimated, the mercal1-
tile prospects Of the country for year
ahead are highly satisfactory, and tho
industrial situation is not less so. Steel
rail manufaoturers have reaffirmeG
$2S as their price for 1906 and have
already sold upwards Of 100000 tots
for delivery at that price in 1905.
while prices Of structural shapes have
been advanced 81 a ton. The tota,
Industrial dividends payable this
month show an increase of about 3d.
100000 over September year ago, the
gain representing an increase in the
rate on the part of some corporations
and also several additions to the divi
dend list The copper metal marllej
is showing signs of weakness, an i'm
portant development being the resale
of round lot of electrolytic by Chi
nese interests to local dealers at
severe concession in price. This cop
per had not been shipped. The resale
probably reflects in an indirect way
the withdrawal of demand incident to
the termination of the war.-Henry
Clews.
Swedish Statesman Dead.
Stockholm. Sweden, Sept 4--Major
General Bjoernatjerna, former minister
of foreign affairs, is dead.