The Washington herald., 1914-08-11
Financial Authority Says Re-
serve Board Should Bring
Richmond Bank Here.
N. Y. OPENING INDEFINITE
Cotton Trade Still Is at Standstill.
Eegs Steel Plants Assumed
to Be Ruined.

mittee's decision, though Baltimore and
other cities will do 90.
The Boston News Bureaus editorial is.
In part, as follows:
The FIRST thing the Federal Reserve
Board ought to do 10 to move the Rich
mond Federal reserve district up to
Washington. where II can be backed by
the United States Treasury and the prac-
tical operations OF the Federal reserve
act. closely watched and supervised by
the new Federal Reserve Board.
The reserve forces Of Dallas and
Cleveland should also be carefully con-
sidere1.
There is a. financial education for
Washington and the whole country in
the discovery that Of the 10000 re-
serve currency under the Aldrich act,
printed and stored for years at Wash
ington. less than 10 per cent was for
New York banks, the now more-than-
ever-demonstrated central reserve point
OF the whole country.
What less than 100000 OF printed
emergency currency for the financial
center amounts to may be indicated by
the fact that the suspension OF the stock
exchange was caused by the discovery
of the bankers that S5.0o00o0 of gold
might at any minute be lifted out Of
New York. even IL no further stock ex-
change liquidation took place"
The strain the war has put upon credit
may be gathered from the fact that Eng
land never before resorted to the ex-
pedient OF the moratorium. The bank
act has been suspended before but not a
general moratorium. which means that
the payment Of debts and all power to
| collect them are suspended. This mora
torium applies to every form Of debt or
obligation except wages, salaries, taxes,
government payments and insurance.
! Only checks and demand bills will be
honored by the banks. II adds three
days OF grace to the end OF the specified
month TO all commercial paper and bills
OF exchange falling due before that dale.
II neither side gains a decided adyan-
tage in the fighting conditions may be
worse than better at the expiration Of
the moratorium While this lasts London
will be unable to act as the worlds
clearing house for foreign exchange,
which adds to the importance Of New
York's assuming that function as soon
as possible.
So much enters into the question as
to the opening in New York that no
definite statement can be made even by
those who would be in q position to know
something about the question Brokers
here who are members OF the New York
exchange are a. sea over the question.
Those outside of the exchange are able
to pass as good judgment on the outlook
as the insiders. The positive statement
Is made that the exchange will not re-
open until the atmosphere has been
cleared thoroughly and assurance is
found that IT will continue thereafter
operations without interruption from the
cause which now exists.
The cotton trade Of the world has been
-
Southern markets have discontinued the
publication OF spot quotations, while the
energies % the traders have been de-
voted to the closing out Of old busi-
ness on the basis Of last prices. Such
operations are reported to have made
good progress and II Is supposed that
practically all the interest left outstand-
ing when business was suspended has
been adjusted with the exception of such
contracts as may be involved in the PelI
failure in New York and international
commitments, The smooth progress of
this evening up process naturally has
created confidence In the financial posi-
ton nt the trade, but there has been no |
movement toward any immediate re-
opening Of the market and sentiment |
seems to be against any such action |
pending a more settled condition Of in
ternational affairs
Southern planters are being urged on
all sides to market their cotton as slowly
as possible. while every sffort is being
used to secure the assistance Of the GOV
ernmelt as well as bankers and mer-
chants. The grower evidently Is much |
alarmed over the possibility Of dis
astrously low prices for cotton as in
dicated by the activity Of Southern Repre-
sentatives-
What has happened at Lege is but a |
foretaste of what must occur at other
important manufacturing towns in the |
warning countries. It is of particular in
terest to the steel trade, for Lege is an
important center OF that industry. Not |
many years ago. before German indus
trial development made its recent extraor-
dinary progress, Liege was called the Bir-
mingham OF the Continent in token Of |
the extent and Importance of its iron and |
steel manufactures It has been a large |
exporter of steel. but its plants are now /
out of business, and some OF them may |
be ruined. This is one source OF competi-
ton for American steelmakers, in the
markets Of the world, cut on; and many /
same fate.
Gross earnings Of the railroads for the
first six months OF the calendar year
decreased Ss4,sol, 900. or SIS per cent, COM
pared with the corresponding period Of /
lsl3 The first half Of 1913 showed a gain |
Of over s1S6. 10000 over 1912.
Chesapeake end Ohio and Chicago, st.
Paul, Minneapolis and Omaha, part of
the Northwest system, were among the
very few roads which reported increases
In growth for the six months. the gains
for those two companies amounting to
ssls.ooo and S5Os,Ooo. respectively.
Pennsylvania showed the largest de-
crease. the loss in gross for the six
amounting to over $4,000, 900. COM
pared with approximately 100000 for
Lake Shore, g, 900 for Baltimore and
Ohio. S5,se0,ooo for New York Central. and |
s. 100000 for Northern Pacific. Several
showed decrease in growth
TO more than H.0oooo0
The American Railway Associations
statement OF car surpluses and shortages
as OF August /. last. says that the total
surplus on that date was 1ss,sos cars.
against 22S5s4 cars on July Is, Iasi. and
9.71s cars on August 1. 1918. The total
shortage on August I. last, was 2,sss
cars. eontrasted with 1s4s cars on July
Is 1914 and 11.2d cars on August L 1913
on August !. last the net surplus