The sun., 1914-09-29
FINANCIAL NEWS
AND COMMENT
Uncertainty of the Factors Of
the War Affects Bust
ness Plans.
FOREIGN EXCHANGE STRONG

with sn ofrcuring vet Of Increasing
censorship drawn over the events Of the
war Wall Street seemed at the beginning
Of the weet 70 erinco trouble in getting
lts bearings The Feeling IL growing that
progress In the solution Of the various
financial problems must necessarily be Inn
peeled by tho uncertain factors of tho
European conflict and this naturally In
creases anxiety for news Of the war at
time when the belllgerents are making
moro desperate efforts 20 withhold all in
formation.
u is interesting TO note that Just tts
more and more attention IL being paid
hero TO the question of Stock Exchange
reopening demand is springing up in
France for the resumption of business on
the Paris Bourse, while British finance
has been engaging effort for more than
fortnight with tho difficulties OF restoring
trading facilities IN the worlds primary
security market. London Tne extension
Of tlie French moratorium docs not assist
Stoc,. Exchange resumption. and II II
doubtful how much the coming tvrmina-
ton of the British moratorium viii con-
duce TO tho recpening OF the London
StcclS Exchange.
The Lombard Street view. which has
been characterized by Intelligence 80 Far.
IS that too much RISK attGchea 80 efforts to
revive various financial activities TO the fun
until the war enters "A more definite phase
In all probability e viii b. necessary Tor
Wall Street TO Limit It's enterprise In the
direction OF reStorstion Of facilities and
recovery Of business 10 tho progress which
London is able 20 make
Tho point OF the foregoing survey is
emphasized by the strength displayed
yesterday in foreign exchange. Demand
sterling cold as high as S60l n. with
cables / cent higher. although something
like a decline az two cents for each form
of remittance was reported at the close.
The late disposition ~ sell was not
trusted too much because the same pie
nomenon has appeared In the last few
days. tho Implication being that some
Interests we're merely seeking 70 establish
easier opening conditions.
The accepted notion IN the foreign II
change market IL that tho announcement
that the British moratorium will come to
a partial end on October 4 and end com
plctely on November has stimulated
a rush TO cover exchange obligations
abroad. but II Is doubted II mucn ad-
vantage has been taken here OF tho mora
torium anyway. II ig reasonably certain
that The quantity OF maturitles which We
will have TO meet In October is very
large and this in itself is one explanation
for tho rise that has carried sterling
bills up IA a week almost half of the
not decline Of twelve cents from tho high
August levels
Another explanation uct 60 current. but
regarded In some discerning circle. -
probable. IL that tho foreign exchanges
have responded t. tho German challenge
OF British naval supremacy Indicated bv
the recent destruction OF three British
cruisers and the persistent depredatlons
committed on British shipping In various
waters. All OF this is u token OF the
extent 20 which the war factor enter.
into !nternatlona! financial reckoning ard
may furnish GONE answer 20 the question
why the gold export arrangements In .le
New York city loan operation and the
process Of forming the 500 900. 600 gold
fund for use in the foreign exchanges
haNo rot had mora OBVIOUS effect on
sterling remittance.
II might be noted IL tho Same con
nect!on also that there IL a good deal
OF questioning OF the gold poo! plan
There will be much dissatisfaction II the
gold provision simply serves 70 cancel
sone heavy banking obligations abroad
without resulting IN any substantial re-
unctlon Of sterling exchange 20 more
workable levels
troduc" Government regulation Of the sup
ply OF creGt and rates Of interest by =
kind OF official prescription were regarded
with a large curiosity but without ap-
prehenson OF untoward CONSEQUENCES. II
was believed that the Secretary 81 the
Treasury would find that he was mistaken
IN most OF his premises and would have
20 realize that the money market !s It's
own ruler
Prices for the new New York city So
cuTitics continued To rise on actual deaf
ines. The three year bonds we're quoted
at 100 :. This Inanifes tation of iuvesc-
mont inquiry has 70 he qualified by rec
oenition OF tho extraordinary terms on
which so high a grade loan has been
negotiated, but 10 still a somewhat hope
ful syinptom Of tho underlying financial
situation n ways can be oontrived 10
allow fundamental conditions 10 express
themselves Adequately. Tho most stri;-
ing thing about Tho increasing talk relu-
tive to stock Exchange reopening Is the
Importance whica Il has gained from
Indications that In leading banding quar-
ters attention Is being directed TO the
subject. The grain markets We're stll
more or less irregular