The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-04
FINANCIAL NEWS
AND COMMENT
Declining Money Rates Testify
to an Easy Bank
Position.
CALL LOANS 3 1-2 PER CENT.

Call money lending at 3is per cent. was
the striking feature in Wall street yester-
day. Judging from the vast lending
power which the banking community OF
the whole country has acquired as re-
suit OF several contributing factors. the
chief OF which has been the change of
banking systems IL would seem reason
able to infer from the course or money
rates that their downward movement has
not approached its termination. Accord
Ing to Wall street reports the average or
standing collateral loans which have been
carried since summer has been married
down to about 8 per cent and time money
has broken to new low levels. with ~,
per cent quoted for accommodation from
sixty days to six months.
Even the development Of a large bor-
rowing demand which is not now in sight
for general business purposes, In COM
binatfon with requirements for speculative
uses. would have to be operative through
long period OF time to be at all effec-
tive in inrpartlng nrmncss to the price of
credit. OF course some vast disturbing
shock to confidence could work on the
disposition Of lenders and alter this sit
nation, and the fortunes OF war. especially
Of the greatest war in history, contain
hazardous contingencies. At the same time,
having regard only to banking conditions
and the position OF money, It is evident
that the financial sinews OF business and
securities market improvement are in
abundant supply.
Everything seems 10 conduce to incrcas.
ing monetary relaxation The entrance OF
Federal reserve banks into the Clearing
House field through f,e collection Of
checks OF member banks and reserve
banks at par supplements banking facili-
ties. especially as existing clearing houses
will doubtless do us the local association
has done. The preparation OF the New
York reserve bank to make collections a
par has resulted Immediately in extending
the par collections OF the New York Clear.
ing House.
There were no other considerations sug
gested by the money market news. For
eign exchange was comparatively quiet
The advance in marks was at least halted
while sterling exchange eased off further
and is now almost back to where II was
before the recovery which anticipated tn,
opening OF the bond department OF the
Stock Exchange.
The Bank of England's weekly return
showed Little loss OF condition. probably
on account OF the turn OF the month and
also because OF the beginning of early
preparations for DEFENDERS monetary re-
qurements. which always impose a good
deal OF burden on the central insttu
ton. The voting OF an additional German
war loan OF $3.50. 900. 900 was taken sc
much as matter OF course by the fnan'
cial district and apparently regarded with
so little interest as to suggest in rather
striking way how completely the markets
have become accustomed TO facts Of tn,
war itself.
Dealings in bonds were a little more
active and prices were II anything hi
! firmer. Short term notes We're very
strong. the new city issues rising to tn,
highest prices yet attained. That som,
! liquidation has been going on In stocks
| was infereutial from the character OF th'
/ price list, which was officially published
/ by the Sock Exchange.
! Comment was also made on the small
proportion OF what are called interna
/ tional shares. especially railroads. in tn
/ list given. and the Inference was clea
I that business in such issues is waitin!
on the Interstate Commerce Commission
as well as on foreign indications So IA
as Yesterdays dealings In stocks wer
concerned the publication Of prices seeme
| to operate Ia the advantage or value
rather than TO the contrary.