The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-11-16
New York Financial Diasnostieian
Reports Important Changes for
the Better In the Financial
Position.
FOR THE RESERVE BANK
New York Stock Exchange Working
Earnestly TO Effect Reopen
ing at an Early Date With
Hope Of Success.

NEW YORK, Nov. 14.-Week by
week important changes for the bet
ter are taking place in the financial
position. These are reflected chiefly
in easier money, a break in sterling
exchange and improvement in the
credit outlook. BY far the most i'm.
portant current event is the opening
Of the federal reserve banks on Mon
day next. OF course, these institu-
lions will not be in full operation
probably for several weeks to come
and some temporary Inconvenience
may be caused by the transition from
one banking system to another.
These however, will be trifling in
comparison with the advantages Of
the new system. 1t is estimated thai,
as result of lowering reserve re-
quirements from 25 per cent to IS per
cent, including state banks and trust
companies, the increase in the
amount Of loanable funds of the New
York clearing house banks will be
about s16o.000,OO0; and possibly $780,
100000 in the entire United States.
In all probability there will be fur
Their retirement Of clearing house GER
tificates and emergency currency aft
err the new system becomes effective,
so that the net increase in funds wild
not reach the figures just mentioned.
evertheless the increase will be large
enough to insure period OF easy
money for some time to come; be-
cause the requirements of legitimate
business are very small owing to the
continued contraction of trade and in
dustry. Clearing house returns con-
tinue about 25 per cent below last
year. The requirements for financing
the crops have about reached their
maximum, and henceforth the de-
mands from these sources will dimin-
ish, especially as our exports of
food products and cotton are very lib
eral. Another proof of reviving conf
dence is the cancellation by the saw
| ings banks Of the agreement to insist
upon the sixty days clause in regard
to savings, which is now left to the
judgment Of the individual banks in
this district Still another important
development was the withdrawal Of
restrictions on trading in unlisted Sc
curities. The New York stock ex-
change is now earnestly at work en-
deavoring to effect an early reopen
ing with encouraging prospects of
success. Some fear of foreign liquida-
ton still remains. The selling pres
sure however. has considerably d.
unfinished during the last few weeks,
and would, if the exchange We're open
ed, probably be conf fined to those in
positive need. On the other hand
the disposition Of the buying power
has sensfbly expanded. The partial
restoration OF confidence has brought
in sight many possible buyers who
would eagerly take our securities at
bargain prices. AS to how much for
eign selling would really occur in
this market, it is impossible to de-
termine. 1t would of course be con-
tional stocks. The holdings of
Americans abroad, it is well under
stood, have largely diminished. At
the same time there are large amounts
Of securities owned abroad but held
upon this side which might come out
under forced sale. The important fact
remains, however, that during the
last month there has been less dispo-
sition to sell and greater inclina-
ton to buy, which has not been able
to make itself felt because of the
closing of the exchange. During the
latter period there have been no i'm
portant new issues of securities. In
spite of dull business, savings have
been accumulated; and in all proba-
bility there is an unusual amount of
idle money awaiting investment, and
depending entirely upon sufficient
return of confidence. One more ia.
vorable development Is the early open
ing of the New York cotton ex-
change, and the adoption of salts
factory scheme for financing the new
crop. The expiration Of the British
moratorium almost without notice,
was also significant event.
The local money market is easier
owing to conditions already referred
to, and there has been further ipl-
provement in foreign exchange which
touched the lowest rates quoted since
the war began. The appearance Of
sterling loans in this market was en-
couraging, indicating that London is
no longer disposed to insist upon the
payment of our obligations in gold
The establishment of foreign govern
ment credits in this market, presum.
ably for the purpose of buying war
supplies, was an additional element
of Importance in the exchange mar
ket Some big foreign orders for
war material have already been
placed in this country, and all indi-