New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-02

sell exchange. Commercial long bills
sent over late in July and held for col
lection. instead of being discounted as
usual, are maturing and adding TO our
funds available on the other side.
Gold Pool Ready When Needed.
As rates approached level not far
from normal. uptown importers, who
had previously refrained from purchas-
ing, were fairly heavy buyers. Further
payment on account Of the New York
City loan will be largely in exchange
instead of gold. In all there is enough
demand for sterling drafts TO make II
wise to continue the operation of the
gold pool. The local committee has TO
its credit over half Of the $l0,000,000
already shipped, and in the SubTreas-
ury here there Is $l5,000,000 more that
can be sent to Canada on short notice
So IL will be able to offer bills when
necessary to check any unreasonable
advance in exchange on London.
Estimates of the amount of gold we
must give up TO Europe have been re-
vised downward. Already some S23,
100000 has been sent to Ottawa TO
meet maturing obligations of the City
Of New York and Sl0,000000 more by
the gold fund committee. In addition
IL appears from weekly summaries of
gold movements that around $4,000 600
more has gone TO Canada since August
/. Much of this represents withdraw
al of funds by Canadian banks which
had considerable sums out on call in
this market, and have been sending
grain bills here to be sold at high
prices. In August and September, it is
estimated, Canadian institutions re-
duced loans here and in London $780,,
100000. In part, however, the ship
ments of gold across our northern
border were private speculative vent
ures, a good profit being offered those
who sold gold to the Bank of England
against which exchange could be drawn.
Until the price Great Britain pays for
gold presented in Canada is raised this
operation pays little at present eX-
change.
Money Offered More Freely.
Money here was offered more freely
at per cent for time and call loans,
but collateral was carefully scrutinized
and more margin required than in nor
nal times. Commercial paper ended
the week at per cent for best names.
4 lOul w dSH4u6Npl NllNit AiAN hNNNo VI
the borrower continue to cause great
concern, statistics were presented 70
show how great would be the release
of reserves when the new banking law
became effective, in the middle of. the
month. As these figures took no ac-
count of the fact that part of the re-
serves of national banks are made up
Of deposits in other institutions, they
were Of little practical value. Eventu-
ally, il is true, with the nations gold
under central control and lower re-
serve requirements, credit will be eX-
banded. A tendency toward imitation
has been feared since the present
banking law took shape. With wise
control it may be that this will be Kept
within bounds, and will enable us TO
Offset the scarcity of European funds
formerly available here and not result
in undue loss of gold.
The movement of gold at this time is
contrary to what had been expected
from experience in former wars. Such
reports as come to us from the great
European banks show them continually
adding to their gold holdings. Inc
Bank of England last week reported
gold increased about 100000, and the
Reichsbank told of gain OF over d.
100000 marks. Financial exhaustion
of the great belligerent nations still
seems remote. Great Britain IS eX-
pected to vote another f100,OOO'OOO for
the war when Parliament reassembles.
France made a loan of 100000 IN
the form of credits here to pay for
purchases in this country, and negotl-
ations were under way for other for
eign borrowing. Germany has estao-
lished a large credit balance on this
side through selling mark exchange
and bankers associated with the Ger
man government say that no loan in
the United States is in contemplation
Russia is transferring gold to London,
and will pay us for Its purchases
through drafts on that centre. q.
The Clearing House institutions OF
this city reported the average surplus
for the week as a little under $4,000
600 In normal times this Is large
excess of reserves for this season. and
with requirements to be lessened IN
two weeks idle money here should seek
security investment. Last weeks gam
in surplus was brought about prlnci-
nallv through a cash gain of about
S650O.OOO. The reduction in loans ana
deposits was slight.