The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-11
FINANCIAL NEWS
AND COMMENT.
Bank Statement and steel Cor
pOration Report Offer In
tercsting study.
CASH DEFICIT LOWERED

New material for financial discussion
was furnished yesterday by the weekly
bank statement and by tho monthly fig
urcs of the steel Corporation Of the
amount Of untitled orders on hand at the
close Of September. The bank statement
was a highly favorable document. II
showed that the banking Institutions at
this centre have made further rapid
strides toward q comfortable position.
decrease IN loans OF s2G.i95,ooO, accom-
panied by an increase IN cash of 1881
600 led 20 decrease IN the deficit OF
s1o.195,oOO This brought the deficit
down TO s7.79l.ooo rs compared with a
deficit OF S3\,3StOoO IN August That
this Improvement should have been
brought about IN the face Of constlera-
BILE shipments Of gold to Ottawa only cm-
pha sizes the power OF the favorable forces
at work II IL suEgo stod that the rather
large decrease in the loan account this
wek which brings tn" total loan con-
traction m the past tire" weeks up tn
S5I.3i6 OO0. may be- attributed IN part TO
the quiet liquidation that is going ON in
outstanding stock Exchange and other
commitments. No particular surprise was
accustomed by the decrease Of i25.66i
tons in the steel on hand, but the
figures We're considered significant n
throwing additional light on the state OF
trade and business in general
Generally speaking the bank statement
and tho untitled orders Of the United
States steel Corporation for September
explain each other. At any rate the con-
tinual Improvement I'm tn" local banking
position in the past six weeks IL IN tho
main due 10 the increasing depression
in the business world testified TO by such
rfue fast. #1Yaaa
for last month. bur tho trade authorities
last week also bore witness that tho
conditions they typify have continued
into the present month. other statistics
Of similarly representative character. such
IS those Of the building trade. idle cars
and the record Of bank cearings them
selves, lend uniform confederation
But II Is obvious that this liquidation IN
the business world Ia having the usual
compensate ms in the economic sense.
Whe-her or not II IS to be accomplished
in the mar future q stronger banking
position was the one Indispensable condi-
ton to a restoration Of an approximately
normal state in business and financial ar
fairs. The reduction Of the huge deficit
ofAugus, to the present small proportions
Is therefore wholly gratifying however
n may have leen brought about. To this
stronger banking position ~ undoubtedly
principally due the more healthy tone
which tho financial and commercial mar
kets took on last week. II progress toward
a discovery of schemes to enable the se-
curities markets TO reopen or OF settling
the various other problems connected with
the foreign exchange m,rl;ct and the In
Ternatonal trade relations In slow there
IL satisfaction that the evidence Of i'm
nrovement in money cord tons makes Il
all the easier to deal with these ques-
ticns.
The relaxation in the money situation
1aI h. q To-
better last week in the commercial paper
market, I'm the Jffcring Of loans on Stock
Exchange collateral and IN a broader de-
mand for high grade securities stock Ex-
change loans on time were offered Inst
week M rItes II per cent and even
per cent. below the maximum OF the pnSt
few weeks, although IN some cases terms
as regards tho collateral put up were
Stiffer. The present demand for funds
for Stool, Exchange purposes IS % course
extremely light, and rates now quoted
must be- viewed in this light. Neverthe-
less the castor tendency here e n mems
ure of confidence in tho situation, which
20 being plainly reflected IN the market for
high grade short term notes
Not only has the disposition 10 press
these securities on the market ut n sacsl-
fce disappeared hu, good demand has
developed in It's place There are reports
from we'll Informed quarters that a very
considerable volume OF listed bonds and
notes IL now changing hands under the
supervision OF the Stock Exchange com
mttce, which allows trades AT moderate
concessions" good deal OF uulct
liquidation has been accomplished IN ahls
way which Is proof not only Il q return
of confidence I'm securities but also ~ n
steadily improving technical market po-
siti n.
The foreign exchange market ruled
frm throughout the week The rise i'm
rates that occurred was attributed to
disappointment among spectators and
others over the failure of the market to
fall upon the practical completion of the
gold pool II IS evident that there has
been considerable misrepresentation over
thr part that the gold pool Is to play.
Apparently, tho committee IN charge ~
the pool has made up It's mind 10 move
with great caution. Perhaps IT may he
said that the object OF the pool was not
so much to reduce rates as to prevent
violent advances. If this Is the correct
theory, II ~ probably the intention of
the authorities TO allow the natural forces
10 right the foreign exchange situation
In a gradual way, only using the pool to
make provision for remittances where
these cannot he postponed, Similarly,
the position latterly assumed by foreign
bankers seems to he one OF waiting upon
results from the unique financial meas
ing further experiments with the situa-
ton at n time when developments In the
theatre Of war remain In an extremely