New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-07
FINANCIAL RECORD
HERE And ABROAD
Prospect Grows Brighter
for Restoration of
Foreign Trade.

States with Europe and domestic ousl'
ness affected by those relations, have
been placed upon a practicable and
necessary war footing; but such de-
velopments as the reduction of the
Bank of England's discount rate and
Of the Bank of Frances to pei
cent (the former from 10 per cent and
the latter from ~ and the reopening
OF foreign exchange business lends
hope than modus vivendi, so TO speak
has been found.
As has been evident all along, no
great progress can be made while the
ocean remains practically closed 70
merchant shipping. The assumption
BY the British government, however
Of the risk Of shipments should dc
much to open the way for exports OF
foodstuffs, especially since ways are
now being found Of adding 10 the
wholly insignificant number of ships
in the American mercantile marine
Whatever arrangements of a tempo
rary character can be made 20 smooth
out the situation il is a fact that
positive relief can come only when
our exports can be transported to
Europe and banking credits be estab-
lished as a result. IL may be that Ger
many and her ally, Austris-Hungary
will be inclined to take view OF the
protection that should be accorded TO
vessels brought under American regis
try different from that entertained by
Congress. Their opposition, however
is not likely TO have much force SO
long as England remains mistress OF
the seas. From a practical stand
point, 1t ought not to be long before
there will be steady stream of wheat
across the ocean, and the pairing OF
of credits thus brought into being
with those created by Europe IN her
sales Of stock to this country should
be a relatively easy matter
Seemingly, great deal will depend
on the events OF the next few days
II is supposed here that the supremacy
of the Atlantic will be contested be-
tween the fleets of Germany and Eng
land before the beginning Of next
week, and that battle will determine
whether the ocean will be safe fol
trnfhc originating in the United States
Apart from all questions OF sympathy
with either Of the warning nations, the
hope is strong that England will be
able to drive her rivals feet to cover,
and for the very practical reason
that by so doing she will unlock the
ports Of FIVE or six great countries,
whereas q victory by Germany would
not even insure the opening of one
country TO international commerce.
Yesterday il was announced that the
London Stock Exchange would prob
ably reopen on Friday, under certain
limitations, and the conclusion was
Immediately jumped to that Now York
would be quick TO follow the example.
But that is far from likely. There are
still a great many things to be done
before it will be reasonable to resume
trading, a fact we'll recognized by the
governing committee and the bankers.
The effects Of such Generalization as
existed in the market on the last day
il was opened, week from yesterday
might readily have been overcome had
there been no war in Europe and no
locking up of the international credit
markets. As it is, the readiustment
must necessarily be slow. When the
Stock Exchange opens again the banks
in the Wall Street district must be
free to extend TO brokers accommoda-
ton Of the same kind they have al
ways given-and in equal measure. At
present they are engaged with too
many things TO assume such respon-
sibility.
The revival of the foreign exchange
business occurred yesterday, when the
Guaranty Trust Company, which in
normal times handles more exchange
than any other single institution in the
United States, began the buying of
documentary bills against grain. The
transactions were made possible by the
fact that the British government had
underwritten the shipments. Probably
this means q large movement of bread
stuffs abroad, as the governments of
other countries, excepting Germany
and Austria, will be likely to adopt the
same measures for getting the grain
their people so sorely need.
Announcement that the French gov
eminent had bought from the Paris
agents of j. P. Morgan & Co. S6,OO0,O0O
Of cable transfers, paying for them
half in gold and half in notes and sill
yer. was another Of the features IN
Yesterdays news that encouraged the
hope Of a speedy restoration of imam
cial relations between Europe and the
United States. The arrangement was
designed to permit the banking firm to
draw on money in Paris for the needs
of American tourists, while it afforded
20 the French government credits here
which might be used in payment for
imports TO France from the United
States or dor any other purpose that
they might be required for.
There was further discussion among
foreign exchange men yesterday OF the
wisdom of attempting to establish q
fund of S100.000,000 or more in this
city, upon which American shippers
might draw in payment for -xports, the
consignees' bankers to be debited with
the drafts, but no decision was arrived
at. BY August 10 cotton normally be-
gins to 20 abroad, and cotton makes
exchange" faster than any other crop.
The bankers are considering the posi-
bility that cotton can be shipped when
the time comes, and in case there are
not vessels available they are prepared
to finance the planters until either ex-
ports can be made or the expected
| great increase in domestic consump-
I ton relieves them Of their load. II
/ the cotton can't 20 abroad IL is almost
certain to be used by American spin
ners, as one Of the bankers pointed gu,
yesterday in a telegram to Oscar I'm
/ derwood, who had been urged by
/ Southern Senators to get the govern.
ment TO do something for their planter
constituents. And that would mean
that the United States, by the end oil
the war, il it lasted any length of time
would have taken away from Germany
and England some Of the best of their