Evening star., 1914-10-25
Reserves Were Short $48,-
100000 Two Weeks After
European War Began.
TRADE RECESSION BRINGS
MONEY INTO THE VAULTS
Steel and Iron Trade Continues to
Suffer From Scarcity
of Orders.

NEW YORK, october 24.-One of the
most gratifying features of the week
was the wiping out of the deficit in
cash reserves by New York banks and
the substitution of an excess amount
ing to about $s.4o0.o00. These insti-
tutions reported deficit Of almost
s4S.000.O00 two weeks after the COM
mencement of the European war.
1t is clear. however. that it is trade
recession that is sending cash into
bank reserves in increasing volume.
The money market relaxes correspond
ingly from week to week. Clearing
house certificates and emergency cur
rency are being retired. AS yet very
moderate investment has been stimu-
lated. Prospect of the federal reserve
law becoming effective on November 30
promises further large additions to
available credits.
A pronounced slump in foreign ex-
change was a feature of the week.
Operations by the bankers gold pool,
the stream of foodstuff exports. cessa-
tion of tourists expenditures and the
expected agreement with British treas
ury delegates at Washington were
jointly effective factors.
On Way to Solution.
Severe depression in German marks
was supposed to reflect merchandise
consignments through indirect chan
nels. Suggestion of British accep-
tance of short term notes from Ameri-
can debtors. coupled with action to-
ward free purchase of cotton by Bri-
tish mills, promises excellent results on
the most difficult problems still un-
solved.
The opposition developed to freight
rate increases at the hearing before
the commerce commission had a chill
ing effect on the feeling of confidence
that the railroads petition would be
granted. Railroad abstention from
prostration of the steel trade. For the
present the grain movement is serving
to sustain railroad traffic.
1t is not improba BILE that the plans of
the British government for protecting
the London Stock Exchange debtors
upon the expiration of the moratorium
November 4 may decide, to a great ex-
tent, the question Of an early reopen
ing of the London exchange and our
own.
Steel Orders Still Scarce.
The steel trade suffered again this
week from smaller orders and lighter
lioho, loouASih6 Ai SohsA aSsAOAi
in output of mills, foundries and fur
naces. 1t is estimated that the indus
try as whole is not operating over
third of total ingot capacity.
United States Steel Corporation actfvi-
ties dropped to about 4S per cent about
a week ago and output of steel tngots
today is understood to be under As
per cent.
Concessions were made in prices of
semi finished steel and lower prices
were made on not few products, in
cluding plates, shapes and bars. the
railroads, while placing few orders for
equipment, are doing relatively as well
as manufacturers The Nashville,
Chattanooga and st. Louis railroad
bought 1000 cars. The Philadelphia
and Reading placed an order for pier
at Philadelphia calling for 1000 tons of
steel and the St. Paul, Pennsylvania
and Cincinnati, New Orleans and Texas
Pacific railroads placed order for
bridge work amounting to about 1900
tons.
Steel building work was a little more
active late in the week, the fabrfcating
shops reporting total orders for only
about $4,000 tons, of which $500 tons
came from the railroads. The largest
building contracts were 3.7O0 tons for
q power house in Newark, and 800 tons
for an apartment house in New York
city.
In the iron trade the principal fea-
ture of interest was the placing OF
contracts for the balance of the cast
iron segments for the East river tun-
nels, calling for, $4,000 tons of castings.