The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-16
FINANCIAL NEWS
AND COMMENT
Prospect Of Return Of Better
Conditions Seen in Wash
ington Conference.
NEW VIEW OF FRENCH LOAN
Realized That Proposition Is
Simply Step to Help Move
Products Here.

There was nothing yesterday TO give a
new turn 10 financial Thought. No de-
velopments occurred peculiar to tho day
itself What interest was shown in the
trend Of financial affairs focused upon
the efforts at Washington 10 devise means
OF solving tho problems confronting
American finance and commerce Great
satisfaction is felt over the conference
being held at Washington between the Ad-
ininisirstion and the leading bankers and
business men. That tho subject should
have been taken up in g. spirit OF entire
cooperation Is considered definite step
toward success, even II "A certain amount
" impatencc IL expressed in some quar-
ters ovor tho absence 20 far OF any de-
cisive agreement on the course to be pur-
sued.
Nevertheless 4 il universally felt that
~ action can he obtained within a rea-
sonably short space of time on the pro-
poaals for "A rocstsblishment OF the for
sign exchange, restoration OF ocean
trade along the regular channels through
provisions for proper shipping facilities,
such as an assumption by the Govern
rusnt of war risks on American carIoes
and q thorough revision OF our navigation
la,ys, great strides will have been made
toward a return to approximately normal
conditions.
In tho general comment Of the day there
was evident a subsistence Of the hasty
denunciation with which talk Of . French
loan was received IN some quarters II
became gradually realized that the pro-
rosal to lend money to the Frsnch Gov
eminent was considered simply as an
other step In the efforts to help move
out commodities to Europe and was not
intended to lay a further burden on the
banking position here. Ia any case the
matter has not advanced beyond the stage
"t an Indirect inquiry 10 private firm
hero.
The statistics OF the weeks bank clear
ings made a rather startling exhibit. But
the showing only bore out the testimony
given by the trade reviews of a gen
,ral sackening In practically all direc-
tons and. with the stock and commodity
markets OF the country closed down.
something Of the kind was after all
foregone conclusion. The sharpest con-
traction was In New York city. exchanges
here falling OF 30 per cent, ~ compared
With year ago, as consequence OF
she closing Of the exchange and the block
s.de Of foreign trade. Tho aggregate
~ exchanges at all outside cities was
80 per cent less than last year. The
combined exchanges OF the whole country
showed q falling off OF 20.7 per cent
Some attention was attracted by the
bank statement, although under present
circumstances, in view OF the abbreviated
figures, interest 10 rather academic than
otherwise. The average return. which Is
me only ono published, reported an In
crease in loans of s36,s+2,0o0. plainly
due TO % further expansion OF accom-
mediation by the banks. 4 falling of In
cash holdings of s3.S57O00 and an in
crease in the deficit of nearly $1,000. 900.
bringing tho total I'M 10 si7.ss2.ooo. Is
not astonishing. all things considered.
Nlt.. rA~1
oeived from tho West OF letup In the
demand for currency by tAe banks. 1t 10
reported from Chicago that depositors
have practically ceased their requests Tor
currency, and that only small proper
ton Of the emergency currency taken out
by tho banks there has been used.
Attention OF the financial community
last week was absorbed by the discus
sion of ways and means and the actual
efforts made to restore as nearly normal
conditions as ia possible. Some progress
was made. The Bank OF England In co
operation with the British Government
took the lead in solving tho foreign ex-
change problem. which Is obviously the
.rux Of the whole situation Tho ar
engagements made by the Bank for the
dcposit Of gold to Its credit In Canada
south AfrtAa and Australia against which
notes could he issued marked the frst
tangible stop toward a breaking OF the
deadlock
The results Of this action were imme-
diately effective and hold out hopes for
substantial progress. The foreign ex-
change market oased promptly. quota
lions being depressed to a level sub
stantially beneath that recently prevail
ing. The Canadian banks promptly Of
fcred bills here against reserves In this
city and a moderate supply appeared from
other sources. On top OF this the British
Governments guarantee of the Bank oi
England against loss on discount OF for
eign and domestic bills accepted before
August l. when the moratorium went
into effect led 20 a big discountins bust
ness by the Bank. huge line Of credits
was released and some fresh business
was done In the open discount market A
what must be considered surprisingly easy
rates
with the exchanges closed and Wal
Street overwhelmed by the gigantic events
in Europe but slight attention was PAID
IN such news as the Federal courts de-
cislon against the Harvester Company
the settlement OF the Governments con
troversy with the New Haven Railroa'
and the Steel Corporations monthly ton