The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-02
FINANCIAL REVIEW
OF THE PAST WEEK
Great Improvement in Condi-
lions After Three Months
of War.
MONEY EASIER ALL AROUND

Now thct the European war has been
for three months a fact to be reckoned
with hy banking and business interests
uad has compelled resoiutc EFFORT to al
Just values to the tremendous alteration
Of economic conditions effected by tho
war II becomes proper to take account
OF the situation and ask how commerce
and finance stand In the changed circum-
stances with which the world has to
deal Tho answer from the American
point OF view Is encouraging.
October WAS distinctly month or I'M
pro,ement Of so much Improvement in
deed that II has already come To be re-
gardcd as marking distinctly tho turn FOR
the better. Much remains 20 he done
to complete trade, industrial and bank
ing establishments. There are sim plenty
Of depressing features in the general busi-
ness position 1t In ultimately certain
that the colossal costs of the war Will
have to be shared by this country, but
there IL reason now to believe that Amer
lean values always based Oh tho sound
est foundations. will by considerable
business recovery I've supported against
the persistently depressing influences Is
suing from the war and that the coun-
try's political neutrality will carry with
10 "A very large degree OF economic I'M
u'uuity from tho hardships OF war
The future Is not bright II cannot
be Wnilo the European sky ia darkened by
inc SONbft CLOUDS OF IIlt tVipSSdl 'pllliiNA
which Is raging. but our own skies are
clearing. Compared with the gloomy vista
which was discernible In tho consterna-
tlon that filled mems minds in early Au-
gust our prospect has more than n SEM
blance OF the return Of prosperity. Nor
does THE estimate OF the outlook depend
on any translation OF tho vast misror-
tunes OF Europe into terms OF good for
tune for ourselves For the sake OF Eu-
rome which will some day mako peace
again, Il Is right to dwell on the prob
ability that the United states Will be
able 70 afford "A frm economic footing for
the reestablishment OF peaceful civtliza-
ton
August was given over largely 70 the
institution OF necessary emergency meas
ures to overcome the shock OF war 70 the
credit and financial structure. Thanks 20
the INTEL gent fOrtitude which was every
where displayed, in governmental in
banking and in business circle. alike,
there was during September sone slow
advance along the road OF financial and
business recovery. but September was for
/ the most part devoted to the consideration
! and approval OF such furthe. steps a.
| seemed desirable 70 protect banking and
| business positions.
Meanwhile automatic processes were NJ
work to relieve financial ard commercial
/ strain and there was only minimum
! amount OF resort 10 hItlnNe ana tAptNl'l4t
which. II adopted on an extensive scale,
could only Interfere with the natural
! functioning OF the banking and COM
mercial organizations. multitude OF
| contrivances we're projected to facilitate n
| resumption OF general business activities,
/ but there - cause FOR CONCENTRATION in
the common sense which prevented q
| reckless recourse to experimental con-
trivances 4 review OF the developments
In recent weeks shows that the country
has gotten very FAR along in its readjust-
mcnts to the war without committing itself
| go undertakings involving some material
sacrifice OF sound principle.
II was not until October that the coun-
Try could see especially In the past fort
night. the distinct headwav made in var!-
Gus important directions denoting a large
aggregate OF progress in eXtrlcatng husi-
ness and finance from the difficulties into
which they had been precp.tated by the
war. How much the gain amounts 20 IS
shown by reference TO the aspects OF the
situation AT the end OF September.
October and September Contrast.
month ago concern was still fGlt over
tho countrys foreign Indebtedness. Thi.
was reflected In the maintenance OF for
eign exchange AZ exaggerated levels. de
mand sterling ruled around 4.97. witt
cables cent higher After the middle
of October a declining trend appeared ir
sterling exchange and the falling tendcnCi
which has been confirmed since is tn
| clearest proof that general bctterment II
our business conditions is something 4
| be confidently counted upon. Almost every
/ thing in the way OF domestic recovery de
| pended on the return OF the iuternatlona
L money market to some more ordinary
/ state and that return has been practically
/ made. Sterling exchange Is ruling arOun'
$50, which, while II Is abnormal, IS no
vtfnI a mr. lN1l
/. larry. as there are so many positive indi
cations that II represents only a haltinj
| place In the fail OF sterling bills.
| Improvement In the domestic none,
| market anticipated the turn for the bette
| in the international exchanges. As Sep
| trmber closed interest rates were on abou
a per cent. basis for all kinds az aC
| commodation, including loans on collatera
i security and commercial paper. To-da
| the basis ~ borrowing negotiations Is no
l even firm at per cent. month ago tn
/ New York Clearing House banking insti
tutions were in the way Of reducing thei
L reserve deficit, but 1t still stood at nbou
s25, 900. 900. Since then II has been OK
, tlnguished and a substantial surplus ha
taken IT, place. Moreover tn" retrcner
/" OF Clearing House certificates end cmor
:, gency currency has begun here ana q
other centres.
n This Is the gauge OF very gratifyin
= change from the conditions Of mont
i since, when the Secretary Of the Treasur
d vas uttcring his unwarrauted aspersiOr
j. OF the banks in relation to the rate {
y interest, but the satisfactory character {
= the exchange ia otherwise Convlnc,ngly 81
n hiDited. In September the bankers Ia
y Just completed their arrangements to pro
vide a 500, 5000 gold fund TO use
foreign exchange transactions and as
guara ntce OF the settlement OF our oblga
. tions abroad, supplcmentng the provsio
W for $50, 10000 gold exports in the Ne
York city loan operation II IS now mon
- or Less assured that. barring some vcr
! untoward turn in foreign affairs, the cUur
y try will not BE- called ON 10 export An.
thing like tho full amount OF gold sul
y scrlbcd by the banks In these agreement
Some uncertainty attaches I'm the ssqu
20 the forthcoming expiration OF the Bri
l. ish moratorium, but all the signs are th'
ell the London money market Is ia comforts
er BILE shape and the Bank OF ENGLAND h
10 steadily and rapidly strengthened Use
AGAINST the requirements of the future.
A. added fully $50, 600, 900 gold 20 It's unpre
Re edented holdings In the past month, VIII!
20 at the same time there was mater.
= contraction IN It's loan account We
vi stll international debtors, but the ca
rent balance no longer bothcrs us. Tn
NJ will be wiped out I'm time, ms Things a
III going In the export trade, and our indch
- .v.HH 40 4 f,.tF q