The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-20
FINANCIAL NEWS
AND COMMENT
"ank Statement Reflects the
New York City Loan
Operation.
ATE CAcE pEODENEn
ATE CASE REOPENED
COMMISSIONS Action Suggests
Further Relief for
Railroads.

There was no surprise In yesterdays
1k statement with its large increase Of
ms exceeding 100000 according to
average figures. which are now all
4 arc published The loan expansion
directly attributable To the New York
Offering OF 100000 600 of bonds and
. es 20 take care of maturing obliga-
rs. The increase tn deposits. aggre-
, Ing $4,000. 900 followed the change
the loan item. \ cash gain OF about
100000 WAS reported. consisting al
ether of LEGAL tenders, 80 That although
re was a large increase In reserve re-
rcments. only t3.3l9,000 was added to
3 current reserve deficiency.
is reasonable to suppose that when
operation In city securities has been
Iploted the distribution OF the issue
be rapidly reflected In an improve
AZ Of the bank position.
\propos the condition OF the banks a
at deal OF interest is being shown in
) return under the Comptroller's call
a report from the national banks as
Saturday. September IL. To the ex-
Il that banks are below their reserve
,ulrements they will unquestionably be
.Irded as Contributing intellisently to
, relief of money market strain and
3 assistance OF general bus ness. TO
> extent that reserves are reported at
above the statutory minimum Il Is al
ether likely that public opinion and
inc!al opinion IN particular will con-
er that such banks have not only not
n doing their full duty In the present
Urgency but deserve criticism for
hsh effort to protect themselves at the
.'ense OF the general situation.
FNNa Nsa. H..
ror banks are being awaited with es-
sial curiosity because OF the belief that
8 the Interior banking community
Eat deal Of boarding has been going
% There are indications that the Treas
" Department Is observing such bank
: conduct closely and will do every
'ng IN lis power to compel a proper
.ange in banking attitudes.
I'm all probability the Federal Reserve
'1rd's disposition 10 approve the plan
general bank underwriting OF a
IoN.oo0.oO0 gold provision for use in
. foreign exchanges has been inspired
p the tendency of the vast mass o.
n all banks to pile up their reserves
here is no doub, that IL the Federal
serve Boards Influence is exercised in
IS ma~.r public opinion will exercise
IA nek ny pressure to induce a wide
cad relaxation Of the grip which too
ny bankers have been trying TO main
n on reserve money
This is not 10 say that the country
n afford to export any great guam
~ OF gold, for II cannot. But the time
= come for prevalent realization OF
mischief which results from augment
? reserve holdings at the cost Of tn.
edit situation In time OF emergency.
rhe grain markets all displayed further
ength. and there is no question
I while the farmers have been selling
'tty literally at the profitable prices
,ring, the war abroad Is making all
. time for a higher level OF foodsturrs
continued recovery Yesterday carried
May option above sl2l a bushel.
ich is rally OF fully half OF the
mt decline
hat foreign exchange tendencies to-
ID easness require good deal OF en-
-agement was shown by the additional
myth displayed. demand sterling SELL
at 1859. with cables a cent higher.
9e prices being fully PA cents above
lays low figures, but the feeling Is
the international money market 1.
Wy improving. Confidence on this
e, however, has to he persistently
lifed by due regard for the contin-
cles of the war
through their official representatives
4 dealers, encouraged by signs that
e Is n fair investment inquiry. have
!ded TO try 10 DO business on a soma
1t broader basis. Nevertheless efforts
I remain subject to a good deal OF re-
elton and transactions will in the main
for formal approval by the commit
which are endeavor!ng to keep trad
within safe limits
= much Importance was the conclusion
ched by the Interstate Commerce Com
sion to reopen the Eastern rate case
hearing begins on October 10 II would
n that a decision might he rendered
de OF a month thereafter. There is
much new ground to be traversed
! the war emergency compels both
1y and resolute judgment. The
nptness with which the commission
nted the petition for reopening sug-
Is tho likelihood OF a prompt decision
I favorable one, and IL the relief for
oh the railroads have appealed Is ac-
ded a great contribution will be made
the support OF business and values
ierally. which will assist the recovery
financial and commercial activities.
Wall Street was not at all inclined
ring the week TO count much upon the
cropping OF peace efforts as a token
an early end OF tho war. II counted
1re on the signs that the London money
trket. which s OF so much consequence
us, was getting In better shape all the
le, as ev!nced not only by the improv-
position OF the Bank OF England, the
arsubscription TO the third issue OF
easury bills, but by open market dis
ints around 3 per cent. the London
ering OF credits here and the down
nd trend OF sterling exchange. The
" York city loan offering elected
Isl gratifying public reply not only do
site but foreign, and promoted feel
OF optimism about the market which
puld be found for necessary new finan-
e and refinancing even at the stiff
cas- which must be paid for accommo-
ton
rhe August foreign trade statement re-
iled the abruptness and violence OF the
nmercial dislocation caused by the wa r.
ports decreased only a little more than
100000, while exports fell more than
100000 and an import balance of
100000 resulted. hut the external
tde movement Is now distinctly bet
=. The countrys domestic business as
whole contracts. hut slowly. the most
onounced depression as yet being con-
ed to some OF tho larger lines OF basic
lustry.
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