New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-12

FIRST month Of the war. Embargoes
against export in certain lines and alb
solu.o shutting or Of markets in hos
tile nations meant, however, that i'm
ports and shipments were each around
$4,000, 900 less than IN September last
year.
Government aid continues to hold
monetary conditions in state of ease
in London. A private issue OF 81 ,000.-
900 ten-yesr per cent bonds was sold
by tho London & Southwestern Rail
way at what seems here tho high figure
Of 99s A fourth government war loan
of $4,000. 900, consisting Of six months
treasury bills, was taken at around 3%
per cent. In France 3 per cent rentes
were reported as advancing to II
francs % confines, the best price since
the beginning Of the war Russia. &C
cording TO cable dispatches. is plan
ming a war loan Of s250,000,O00 at 5
per cent. The Bank Of England re-
ported reserves Of almost 20 per cent,
which. though ahnormally low for the
season, was high enough to pass in
fairly normal times. DESIGNATING for
the London banks wa, lighter. so loans
decreased. Bullion holdings reached
over s56,oo0,000 through an addition
Of nearly 100000.
Bank Deficit Lowered.
Here the banks found currency
gains from the interior again replac-
ing gold lost through shipment TO
Canada. A reduction of loans of S26,-
10000, with deposits SS1 100000 lower
and cash increased nearly S40OO.OOO,
effected n reduction Of the deficit to
less than 100000 The reduction in
loans was particularly notable and re-
fected the increase Of investment buy
ing, which took the new city notes IN
large volume and extended to other
sound short term issues as well.
Commercial paper moved with greater
freedom last week than il had since the
outbreak Of war tied up the market.
Local banks and trust companies ap-
pesred again as buyers, and in addition
the demand from interior institutions
increased. At best, however, business
did not reach q quarter of the normal
volume. but rates were a shade easier,
transactions in best names being re
ported az Ga per cent instead OF l..
Establishment Of the Federal Reserve
system will greatly encourage the bill
market, for IL will be through redis-
counting commercial paper that the
new reserve notes will have their ORR
gin The regional banks will have It
in their power to gather together credit
information that should make impossi-
bic such abuses as brought on the
Clafin failure and should make mer-
camille obligations safe and more
popular form of investment.
Mercantile PAYMENTS Hcavy
Beginning with Saturday, October 10,
came the period Of heaviest payment IN
mercantile lines. which is much greater
than the spring settlements of six
months before. The period was ex-
pected TO be passed without any Sc
we're embarrassment, as accounts are
SQUARED in a great measure by eX-
change of banking credits and no par
ticulsr strain on local institutions was
looked for. Retail collections were re-
ported slow, so jobbers had to do
good deal Of borrowing to meet their
bills TO manufacturers.
Savings bank depositors as the sixty
days notice required began 70 expire
failed to take advantage OF the oppor-
tunity 10 withdraw money to any great
amount. Generally savings institutions
report about 20 per cent taken out of
the amount originally asked for. II
now appears possible that had it not
been for the closing of few private
banks on the East Side of this city it
might not have been necessary TO en-
force the sixty days clause al all.
Though Withdrawals because Of appre-
hcnsion are no longer feared, there is
reason to believe that considerable
sums in the aggregate will be taken out
to obtain advantage of the higher an
nual return afforded by low prices OF
sound securities. Postal savings. as
natural in a time Of international dis
turbance, have increased heavily, but
some proportion of the sums so laid
aside should eventually find its way
into the regular savings institutions.