The Washington herald., 1914-08-05
TREASURY POLICY
MEETS APPROVAL.
An Abundance Of Emergency
Currency VIII Supply All
Needs Which May Arise.
STOCK MARKET GOSSIP
Technical Position Believed Strong.
Date of Reopening Doubtful-Se-
curities Now Attractive.
BySw. sTEALEY.

The distribution Of emergency currency
will be made as the banks request IL Ine
policy Of the Treasury Department VIII De
one Of the utmost liberality.
It is believed that before q great while
gold Will come back from Europe IN pay
ment for war supplies.
There is a belief among brokers that
the technical position OF the STOCK mar
ket is very strong. because the shortage
is shown by private borrowing TO De eA-
tensive, the floating supply OF secur1ties
which Europe can liquidate has been re-
duced 10 a minimum, domestic situation
has been Iiquidate, banks are in an aoso-
lutely sound condition and there Is In
preparation great buying movement not
only institutional but a concerted indi-
vidual absorption suggested by the many
obvious reasons why bargains are offer
ing. The largest odd-lot business in the
history of the stock market 1t at hand II
the recent past and prospects for the i'm
mediate future are considered according
to good authority. any stocks are taken
up by purchasers who carried them on
margin. The date OF, the re-opening OF
stock exchange cannot yet be dehnitely
stated. Certain important interests are
understod-to desire to see the formal Of
fetal alignment of the European powers
before permitting open trading. SO that
may De q Etdl
for transactions and calculations
It is stated that although the market
value Of securities owned by the in
surance companies will, at the present
time, show a depreciation, the actual
value of them has not been changed
either by the war or by the closing OF
the New York Exchange. The policy
holders are amply protected and nave
no cause for alarm.
This statement applies, not only TO
American companies but TO the United
States branches Of the foreign companies
as we'll These branches are TO all in
tent and purposes, American companies.
amply protected by funds in the hands
of American trustees and designed 10
protect American risks.
Before a foreign company can do busi-
ness in this country, a company must
deposit sufficient funds to firmly es-
tablish the branch as an American COM
pany. The securities in which the COM
pany must invest are defined by a
statute and are Of such a character that
they can be readily converted into cash
in an emergency. The company must
not only keep its deposit capital intact
but it must also be in possession OF an
adequate surplus and its American funds
cannot be Withdrawn as long as it has
a risk upon its books.
Few American companies do business
abroad. None OF the American fire or
casualty companies have business in
Great Britain or Europe and only four
life insurance companies. The arrange
ments under which the life companies
do business abroad are much the same
as those which govern foreign COM
panies here. They must make deposits
in the securities OF the country and
their losses are paid from reserves main
tanned in the country.
II the railroads are earning less than
formerly on their common stocks. the
market prices thereof have lately been
cut down to such an extent that earn
ings on the market appraisals look more
respectable than at ay time in the last
two years These indices OF value, how
ever, are still below the figures of the
good times prior to 1907 in respect to
most roads. particularly Western roads.
L.