New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-07
REVIEW OF The
WEEK IN FINANCE
Pronounced Easing OF
Rates for Foreign
Exchange.
CITY LOAN TO AID
OUR CREDIT ABROAD
New Taxes to Supply Govern
ment Funds-Bank Deficit
Larger-Trade Still Hating.

During last week the foreign e1-
change situation was greatly improved
demand sterling dropped 9 cents 70
nrder 800. Announcement was made
that the bankers here would take
city loan and provide gold or exchange
70 meet the warrants of the City OF
New York maturing between now ana
the first of the year, wheat exports
reached record totals and the hnan-
eiers Of the country, after conference
with the Federal Reserve Board, decid-
cd on steps toward assuring payment
Of all our foreign obligations. Inc
Bank Of England announced that II
would provide funds so that acceptors
Of bills could meet them at maturity
with the intention of aiding the Lon
don money market to resume financing
Of imports. An extension Of the Brit-
ish moratorium, however, made 1t evil
dent that the London Stock Exchange
could no; be expected to open for some
time. As il is assumed that trading
here must wait on action in the British
capital. the present lookup Of bank
funds in Stock Exchange collateral
must be expected TO continue
Though, by the terms Of the agree
ment by which the banks are to pro-
vide the City Of New York with funds
20 meet its warrants maturing abroad
gold is TO be shipped 10 Canada II nee
ossary. il is hoped that II Will De pos
sible instead to provide exchange for
the greater portion Of the amount tina.
is needed between now and the first OF
the wear. Once it is known that the
actual gold is available, the demands
of London for these and other obhga-
lions as we'll are more likely 10 Dc
satisfied with exchange against credlts
granted abroad.
President Wilson has wisely recog-
nized that to replenish the funds IN the
Federal Treasury through new govern
ment borrowing would put needless
strain on the money market and dis
furb unnecessarily the values OF eN-
listing government bond issues, so he
has called on Congress for taxation
measures to supply additional revenue
at the rate of Sl00,0o0,0OO year WIN
customs receipts shrinking at the raplo
rate shown by last months decrease OF
some $4,000 900 below August OF last
year. the new taxes must be made to
hiring in immediate return, but it is to
be hoped that the suggested eXpedlent
of taxing railroad tickets will not be
adopted. Higher passenger fares was
one suggestion of relief pointed out
bv the Interstate Commerce Commits
sion when it refused to grant the East
ern roads the desired increase IN
freight rates. and the railroads should
have for their own needs all the fur-
Their revenue that passenger traihc can
grant.
Business Still Disturbed.
business generally is still, Of course,
halting, with collections slow and new
orders restricted. Fortunately, far
sighted business men have prepared
themselves against possible difficulty /
this fall, and so are better able to meet 1
the unexpected strain caused by the /
war abroad II is yet too early for any 1
readjustment to the abrupt I
break in our foreign trade. Manufact- /
rrers hesitate to start production OF .
substitutes for goods formerly bought .
in Europe when il is impossible to tell .
now soon Resumption VI lHlPOA - 4i4BH'
make Improbable the money invested. |
With Continental markets cut off, there /
remains, il is true, business of the war /
ring nations in South America and the /
East that might be captured. This, IT
is now realized, will take more time /
than was at first enthusiastically sup !
posed. In addition to convincing new
customers that they need our goods we
must arrange to buy from them in
return, and through q new system
Of international finance, make it pos
slble to replace exchange on London
with exchange on New York. A start
toward such closer financial connec-
lions with our southern neighbors has
been made by the National City Bank,
whose application for permission to