Evening star., 1905-10-22
Relaxation in Foreign Marts.

reward the end of the week there was
perceptible some relaxation In foreign
money markets as a result of the reeunera-
tion effected by the great government in
stitutions.
IN our own money market rates showed
lie effect of additional supplies as soon as
the proceeds from japanese loan subscrip-
tion payments became available to the mar
ket. The sentimental effect of this was
lhoulhed somewhat by the evidence in the
loIHhh eAchange market of prepare tions
Tor the remittance of japanese funds
abroad, thus threatening their early dis
placement from their lodgment in the cau
loan market. In the meanwhile subtreas-
uTS operations have been for the bcneht of
ttle pauks ana the interior demand for
currency has been relaxed
With the downward course of the coll
loan rate in New York stocks have risen
especially in a group of industrial stocks
WIN sPeclal developments to recommend
theih- Attention has remained centered on
the money situation and the conviction hos
taken form that the early estimates of the
ran money markets were misiudred Dis
cusslon continues of the extraordinary
NoIume or outstanding credits and the low
proportion of banking reserves. and it is
pointed out that the expansion of credits
has more than kept pace with the large ,ad-
u-1tojS Srhtoh 10 the worlds stocks OF gold, from
NhISh much has been counted upon in
money market estimates for some time past
Large Demand for Exchange RiIs
The course OF the foreign EXCHANGE r,.r
ket In New York gives evidence of bo1,
Iar previous borrowings of foreign f,nas
have anticipated the adyantapas' -,
period OF heavy outgo of r,eroba,d,so -,
ances. There is large demand ho,h
present and prospective. for exchange hius
10 cover maturities now falling due of &C.
called sterling loans
These borrowings were made earlier In
the expectation that money abroad would
continue easy and that large supnI,es n,
cotton and grain bills at this time I'm tho
exchange would afford opportunity In covar
obNgations to advantage Both exnecta
IONS nave been disappointed TO a degree
Inc large expansion OF bank Ioans
throughout the country leaves sentiment
somewhat sensitive to anything bearing nm
the quality OF credits, and the stock mar
ket or the early part of the week was per
rvPuoy aHected by the closing of banks in
-, ,,,e.i. e,tmu ahH IN Allegheny which were of
no great Importance in themselves Stock
commission houses complain also that The
insurance investigation going on In New
1oIk has d'scouraging effect on stock
market business In the same Connection
criticism continues OF the unrelia biit, 'io's s
the weekly bank statement and of tba
trust companies position. VI '"e
As result the full text was nuhIisbaa .,
the address before the ClearinP HnI,ne VI
sOciation of President William A Mash of
the Corn Exchange Bank in wbicb ha
sounded a note of warning against the
drift in the banking position as a whole
toward position of weakness which wonId
become one of danger 0
Mr.. Nash proposed that the trust COM
panles should again be admitted to the
clearing house on condition OF maintaining
10 per cent of reserves, ~ per cent to he
held IN their own vaults, the rest on de-
pOsit with reserve institutions, with state
ueut OF condition for inclusion in the bank
statement. The clearing house requirement
on which the trust companies withdrew
was the maintenance of at least 10 per
cent OF reserves in their own vaults to be
increased to Is per cent at the discretion OF
the clearing house. Aside from freight OBJ
struction by congestion, nothing is reported