The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-19
FINANCIAL NEWS
And COMMENT
Further Relaxation in Foreign
Exchange. With a Late
Rally.
BIG RUSH FOR CITY LOAN
Indications That There Is d
Good Investment Inquiry
Generally.

Interest was divided in Wall street
Yesterday between the more pronounced
symptoms Of relaxing conditions in for
cign exchange and the indications OF the
New York city loan subscription that the
Investment market was in much better
shane than had been believed. The two
matters were more or less connected OF
course. for the city loan operation has
been a prime factor In the decline OF ster-
ling exchange.
Demand bills we're quoted below 4.93
I'm the early dealings yesterday, with
cables below i.9i There was suit
GENTLY active inquiry for remittances 10
cause n rather sharp rally. and IN the
afternoon demand sterling went 10 4.9An.
with cables quoted ut 1851. Continental
remittance was stll quoted. but there
was not much business doing In either
;erman or French exchange. 1nforma-
ton obtained at the Assay ONCE indi-
Gated that some $4,000 gold had been
shipped to Canada this week outside the
movement on the city loan account, and
there is no doubt that the moderate re-
lease OF gold has begun to improve
London financial confidence in our posi-
ton.
The volume OF our export trade seems
now TO have recovered more nearly nor
NAL proportions. and export bills arc
money market, while London is again re-
ported a lender here. The extent OF the
foreign subscription to the New York city
loan will be further token or the
European financial attitude. which must
enter into the reckoning when considera-
ton Ia seriously devoted to the problem
OF resuming business In the securities
market.
The fact that the bankers who have
had in charge the matter of country
wide underwriting plan TO provide $780,
600, 600 gold for use in the international
exchanges were again taking the sub
tect I'D in conference with the Federal
Reserve Board seemed to have some favor
able influence over international monetary
conditions The provision Of gold 10
whatever amount may be necessary IN
canceling New York citys obligations
abroad could hardly fail 10 persuade Eu-
rope. especially London, OF the honorable
Intentions of the American business and
banking community In respect TO tho pay
ment Of the country's foreign indebted
ness The large gold project Is not In
sured thereby. but II Is reasonable
presumption that general banking sup
port can be ELECTED for the plan II the
Federal Reserve Board will approve IT,
and Il is also reasonable TO suppose that
banking interests are informed that II
he plan can be put into operation II Will
be Immensely helpful in the tremendous
readjustments which the European wal
has made necessary.
How trustworthy preliminary estimates
OF cash changes are is doubtful. The
known movements seem TO Indicate that
some gain will be reported by the locl
banks to-day. but all calculations arr
relatively unsafe AT n time when resor
has to he had TO clearing house certih
Gates and emergency currency, although
IL IL said that there II less pressure fol
The employment Of these instruments, II
general also there seems to he a some
what more cheerful feeling In banking
circles. which might be in anticipation o
the approach Of some degree OF relative
ease In the domestic money market.
Anything of that sort should be con
ducive to a lessening OF strain on posi-
tons in securities. which in turn would
reject favorably on credit conditions. Thu
reciprocity OF relations between the Sc
curties market and the money marke
does not seem 10 he as well understood
as 1t should. judging from some curren
criticism directed against the banks. bu
n Is possible to infer that reciprocal infiu
ences are pointing To more hopeful pros
pect.
II is certainly OF encouraging augur.
That there should have been so large
demand for the New York city loan. de
mand which caused talk early AZ yes
terday morning OF a considerable over
subscription. on the appearance OF thi
investment inquiry the bankers who hav
taken their share OF the new city securi
ties are likely 10 be able TO turn theI
over very quickly at some little pron
The bankers for the Erie Railroad ar
offering an extension OF s4.5O0.000 OF tn
company's ) per cent notes for one yea
on ~ per cent, basis. and borrower
must expect to pay stiff rates for accom-
mediation. hut all the indications of tn
Investment market are that accommcds
ton is going to be obtanable.
Bond dealers are said to have been s
much impressed by the investment IN
quiry which IL disclosing itself that the
are disposed TO insist upon breaking ava
from the restrictions which have bee
placed on dealings and to proceed to d
business. If not exactly on a wild
open basis. at least in a less Unite
fashion than the banking community ha
been inclined to sanction.