The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-28
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Steadier, but
Tends Downward as Ex-
port Trade Grows.
Z. s. STEEL DIVIDEND CUT

| Sterling rates were at no time as low
as on Monday. but closed q little below
tho best at 4se% for demand and 1901
for cables. Marks wers unchanged
around ssh
II was quite according TO expectations
that the downward movement in sterling
remittance should at least pause. Rather
rapid progress has been made lately In
bringing about a readjustment OF the In
ternational financial position. q process
which has been accelerated by tho re-
markable export trade recovery which Is
under way. but les owing to variety of
causes. Bankers think that tho country's
debit balance abroad. while II IL being
extended in part as we'll as llquldated in
part, will especially In the closing months
OF the year tend 20 cause upward reac-
tons in foreign exchange and to check
declines
Nevertheless n In felt that The down
ward trend Of the international money
market has been established. and on this
account sentiment and opinion have been
greatly encouraged by recent develop
ments. Both the international and the
domestic money markets have been talk
ing care OF themselves automatically to a
| large dagree which IL the best way %
| eItricate business from present Difficult
tea Tho less resort thcro Is to novel
devices and experimental measures tho
greater tho probability that financial and
business Improvement will he sound and
| free from liability to disturbing oollapses.
Still recognition must be accorded to
the part played by banking and business
interests and governmental representa-
| tives in tnstitutins measures which have
/ been helpful in relieving conditions. Tho
| gold fund. for example, seems almost 10
have been laid on the shelf by the favor
| able march of events. but lt was the pro-
! lection OF the gold fund, following the gold
export provision in the New York city loan,
that started the relaxation in foreign OK
change through the confidence which they
restored In London In our purpose and
ability to meet our foreign obligations In
the ultimate form OF money.
So far In the past few days there has
been no further quotable change in the
domestic money market, but there are
competent judges who believe that rates
for accommodation will shortly be low
cred. although nothing like cheap credit
IL expected. The approaching inaugura-
ton OF the Federal reserve banking sys-
TEN Is regarded without apprehension OF
any serious disiocstion OF funds and the
prospective operation OF tho system 10
an element in the calculations OF easier
money in the future.
Meanwhile the external trade situation
continues to produce fresh testimony OF
the economic change for the better that
is taking place. Without any material as
sistance from cotton and other commodi-
ties or from an extensive catalogue OF
general merchandise shipments which ara
customar!ly made, war born business Is
yie ding a swelling volume Of exports.
Figures for this port show that last
weeks shipments aggregated S21,S97.0OO,
being a gain OF 1922. 600 over the pre-
| vous week, S3,tO2,O0O over the CORE
| spending week last year. the largest ex-
ports for the week on record and the
largest weekly outward movement in six
months. Moreover. the export trade is
still expanding. Monday shipments were
sG.20O,OOO. Tho smicable attitude taken
by Great Britain in shipping controver-
sizes must contribute 20 increasingly hope
! full views of the export trade.
Sooner or later the fore going financial
and business facts must tell favorably on
domestic trade. At the moment though
some depressing features are evident. an
illustration being afforded by the quar-
terly return OF the United States steel
Corporation.
/ Net earnings for the three months ended
with September were S24,792,0O0. or Vs.
65s, 900 below the earnings for the cor
first nine months of the current year the
corporation earned about s6l,500,000 net
and there was no eurprise In the decision
OF the directors to cut tho common divi-
dend from the ratio of 5 per cent. 20 2
pe- cent for the year. Not since the
middle of 1909 has the quarterly disburse-
ment on the common shares been so low
as the distribution now made, u OF per
cent.
ono conjecture which me reduction OF
the dividend Is bound 10 stimulate Ia
whether or not II foreshadows a low "rlng
OF the wage scale. There are opinions
that something OF the sort In bound to
be an incident OF the Industrial history OF
the next six mo this. That all large In
dustrial concerns in heavy lines arc not
suffering from the effects OF the war was,
however denoted by the Central Leather
report for tho September quarter, showing
an increase In surplus earnings amount
ing to $4,000 in comparison with the cor
responding quarter last year
A good deal OF lively comment was
provoked by the Washington advices,
which told OF the Comptroller OF tho
Currency's determination 10 recognize the
stock Exchange prices OF July 30 in mark
ing bank loans on collateral security. A
good many OF the opinions expressed were
probably beside tho point OF the
Comptroiler's purpose, which can hardly
be anything save to render what official
assistance he can 10 the efforts making
TO prevent arrangement of banking rels-
lions
Yncr0u FvTrpu NApYET