The Washington herald., 1914-09-26

however. is purely guess work. 1t is
stated among brokers that they have
many orders to sell for cash with COM
paratively few orders to buy. Some brOk-
ers are of the opinion that the opening
of the exchange is a long way of. The
war. of course, is the governing feature.
With peace in sight rehabilitation must
come sooner or later. Under present con-
ditions Europe would sell recklessly
which would not be the case when peace
is restored.
Foreign or Gold Fund.
J. B. Forgan, chairman of the COM
mittee on the gold relief plan. says.
Under the abnormal circumstances 1t
is not strange that our international eX-
change market should have been thrown
into a chaotic condition and that the
demand for foreign exchange should have
raised the rates for it to figures which
are practically prohibit:ye Tor ordinary
and legitimate business purposes.
Much of our foreign Indebtedness is
PAST due and our credit abroad is seri-
ously impaired. So much Is this the case
that the London discount market has
been practically closed against Amcri-
can time bills. The principal sufferers
by this situation are the importers. not
confined to any particular locality or
section Of the country. Their indebted
ness both direct and under bank letters
OF credit has matured or is maturing
and they are being compelled to pay the
prevailing eNhOrbitant rates OF exchange
to meet them and protect their credit.
This fact makes the matter one in which
the entire country is interested. Ma
turIlly, the situation eliminates in New
York, the financial center o. the coun-
try, where our interna tional exchanges
are cleared and where Under normal con-
ditions. as well as under abno-ma! condi-
tiOns, the daily rates f0~ foreign ex-
change are made for thu entire country.
THE raising of the proposed 800, 900 OOl
gold fund among the banks of the coun-
try for shipment abroad as necessary.
will, it is believed, re-establish our credit
there, open up the London discount
market to our time bills and thus facili-
tate their conversion into demand for
IT, The raising of this fund will not
however. protect us against the further
return to this country of American Sc
curities in large amounts, but it will. it
is hoped, by restoring confidence and
this country's credit abroad, prevent their
being thrown on the market here at
slaughter prices for foreign holders
Virginia Railway and Power.
The Virginia Railway and Power Com
oany for August made d better showing
II earnings lndn II Olu IN July Inc III
,rease for August. 1914, over August, 1913,
was $70,2TO or LES per cent; while for
July the gain in gross over July, 1918,
vas A.12s. or less than l per cent.
The final results also were better. as for
July, 1914, there was a decrease of $3,641
n surplus after charges. while August
reported an increase of sos in surplus I
after charges, as compared with August, |
slS. Operating expenses for July, 1914. |
we're S,6iS larger than in 1913, while in
August 4 reduction of $6,2s9 was made !
as compared with 1913. Total income of |
he company gained less than One-ha'f |
If ! per cent while for August the total |
ncome showed a gain of SD per cent
For the two months ended August 81, |
9l4. gross earnings were $S9O,0l4 a gain |
II $l1,3sS. or L3 per cent, over the corre- |
ponding two months of the preceding |
ear. Operating expenses were smaller |
" $3.50, and net earnings were $467, SIS, |
gain OF Sl5.03s. or 3.52 per cent Other /
ncome increased $3.50. and total income |
or the two months was $3.50. 772, a gain |
4 $12,lIS, or 2.59 per cent. Taxes, Ii
ehses, interest. sinking fund, etc, for |
he two months were $27S,s2O, an increase
( Ss.713, or 3.29 per cent and surplus was
2O6, $50. a gain OF Ss,434, or 1.69 per cent.
depreciation reserve was unchanged, and |
ne 0nal DdldnCt dppLlCdblS u Wv lutuus
ras S19OlS5, against 1885, in 1913, a
ain Of s3,I34, or Ls4 per cent.
A recent development in the foreign
xchange market is the establishment OF
irect exchange relations with certain
the neutral count es on the European
The war and the resulting un-
satisfactory status OF the sterling mar
ct has led importers of American mer-
handise in those countries to have con-
ignments financed through New York
instead Of London. as was the regular
ractice prior to the outbreak OF the
'ar.
In few instances importers Of cot
on In Sweden, Denmark, Spain. and
tally have arranged with some OF the
Jew York banks and private banking
ouses for an acceptance credit. The bills
sainst the shipments running for ninety
avs have accordingly been drawn in
ollars and disposed Of in the local mar
ct The fact that they have been dis
ounted at s 3-s per cent, when the mini
ium quotation for the best paper is !