The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-19
UNMIsTAKABLE SIGNS TO THAT
EFFECT CONTINUE TO BE
OBSERVABLE.
COURAGE OF BANKERS
EXHIBIT sTRIkINGG WILLINGNESS
TO HELP IN VARIOUS POOLS
FOR RELIEF OF FINAN-
CIAL CONDITIONS.

New York. Oct, 1s.-The Suns
weekly review of the financial situa-
tion tomorrow will say:
Unmistakble signs continue to be OBJ
servable that money or credit in the
domestic market is working into a
more comfortable position.
Some of the latest Of these signs are
afforded by the further shading of
commercial paper discounts. so that as
low as per cent has been reported
for high grade names. Another tndi-
cation Is the reduction IN the last few
days of the rate for new call loans TO
stock exchange borrowers, accommoda-
ton now being obtainable at I per
cent, compared with the per cent
figure which has ruled for weeks. From
various centers also come advices TO
the effect that banks are contemplating
the retirement Of clearing house certtl
Gates, as well as emergency currency.
although it is likely to be a long time
before there is any substantial change
in these reports,
Bankers Cooperate.
The most important token is fur
nished by the disposition of the bank
ers who are displaying increasing cour
ee in the proffer of credit and ex-
hibitinr a striking Willingness TO co.
operate in various pool or syndicate
schemes for the relief OF commercial
and financial conditions. More than
one good result has already followed
and viii follow upon the creation of
the foreign exchange fund. and the
impetus which was given thereby to
united effort Is revealed In the support
lent to the project for $3.50, o0e. 900
banking pool for loans on cotton.
Just at the moment this ia quite the
most ambitious plan under way in the
field OF domestic business. and IL may
lead to- very desirabie consequences
Too much is not 10 be expected In
the way Of cheap money with all the
doubtful fortunes tff the greatest war
In history hanging In the balance. The
needs Of commerce and industry can
be met with accom- m odation for which
full prices are charged. The essential
thing is that accommodation should
be oetalnable at some price by those
who can employ It probably at any
price. Moreover the rate Of interest
must. in the long run, be fair. with due
allowance for any given set OF eco
monte factors.
The stock Exchange.
on all accounts. including both con-
structive and destructive processes. the
reopening or the stock exchange Is
something which cannot be Indefinitely
postponed.
So far reopening has been de-
ferred by doubt about the consequences
of shrinkaRe of quoted values, the
situation is now such that the pros
pect of contraction can be contemplated
without grave uneasiness-
II Wall street takes it's opinion out
of the sands of professional Optimism
or ot al Of will
see that nothing Is being made better
and eventually good deal Is going TO
be made worse by comparing the stock
exchange conditions.
We feel an obligation to our foreign
creditors on open account 10 discharge
our debit balances at great cost to our
selves in the shipment of gold. We
are under no oblga ton 10 Europe to
give IL gold in exchange for such guam
tity OF American securities, large or
small. as foreign holders may desire
emergency. When those securities
went abroad we did not get gold for
them. Their purchase by Europe was
financed with credits
Gold Shipments.
IT may very well be that foreign
holders OF very large balance of
American securities would prefer TO
trade these securities for American
back balances with entire Willingness
to await developments which will make
those balances convertible into cash
or credits in their own country. At all
events. we need not he squeamish
about serving on the foreign holders
of American securities notices that II
they insist on returning them it will
only be on our terms and that gold
cannot be drawn against the sales until
we are good and ready to let 1t go.
Meanwhile, Sir George Paish and
Basil *, Riackett have come here as
official treasury representatives of
British treasury finance to consider
measures for the restoration OF foreign
exchange to the normal as well as for
the facilitation of international deal
ings In securities. cotton and general