The Birmingham age-herald., 1914-09-04
The Market Situation In America One Month After the Beginning of Hostili- ties In Europe.
Bx HOLLAND

New York, September 3--tSpecial.) )-At the end of the first month of the Euro pean war conditions in the United States, and especially in New York and other large financial centers, can best be ae-. scribed by saying that we continue to mark time. In some respects the situa- tion from the point of view of finance and banking is somewhat improved. In one respect, there is great improvement. For a few days after the stock exchanges were closed and absolute deadlock pres walled in the foreign exchange market the apprehension was great that financial $ chaos might come. That fear has been dfspelled. There Is confidence that the authorities at Washington and the leading bankers of the United States acting in cooperation with the American public. may speedily find a good way out cf what is substantially a condition of inn passe, at least so far as our interna- tional trade and financial relations are concerned.
 When it's governors received information which caused them to close the stock ex- change many were the predictions that trading would be resumed on the door of the exchange within few days Now no one ventures to predict the time when the exchange will be opened. The doors will not be opened until there Is assur- ance that the American securities mar ket will be able to take care of what ever is offered by the holders of Amer ican securities in other lands. Ill tte Wall street district the only reply given Un open?" is this: No one can tell' Some times bankers and brokers reply in the colloQuialism of the day, saying: You can search me" These replies make it certain that there will be no surprise if the exchange remains closed perhaps for two or three months, but there would be some astonishment if the governors of the exchange should decide at an early day to open the doors.
 At this time of the year it has been the custom for more than 50 years for great currents of money to flow from the east to the agricultural sections of the United States, so that little later there would begin a heavy movement of crors to the markets. But among the other dis turbances or changes caused by the Eu- ropean war is delay in the movement of the crops to the market These stu-
 
 in our history, must await the course of events across the sea, and especially in land. This may tend to reduce the earnings of the railroads, at least tenn porarly. s
 Feeding Germany
 There arc intimations in this city that through friendly understanding with IIol- land Germany may be able to secure much needed food products from tfe United States. These, when the ocean is free again and commerce bearers are plentiful may be exported to Holland, tte American exporters knowing no other purchasers than the merchants of Ho- land, who in turn may sell these Amer ican food products to Germany.
 While American finance in it's interna- tional relations is now marking time, the deadlock in the foreigis exchange con tinues The master minds of foreign ex- change who for few days after Gel many declared war were persuaded that they would be able to solve the riddle of foreign exchange appear at the end of the first month of the war to be no nearer solution thanothey wsre when they aI- preached the problem. 1t is this situation which serves considerably to complicate our international fnaniial relations
 It Will Be Paid
 One of the problems which presses for immediate solution is the manner in which the debt owed by Net York city in Flu rope, aggregating s9me s4o.Oooooa, and soon to become due, ak to ba paid. There is no disposition to pbcrastMate the pav- Inent. New York eft has the funds and these funds will be in the control of in- ternational bankers If foreign exchange were normal or ev3h slightly above tEe normal point then tere would be no qlies- ton about the pasflent on time of this New xaue debt. Fit if it were necessary
 eA.nEs 1 the present rate and