The Washington herald., 1914-07-31

surance rate SCARED as high as 50 cents
for each 500 OF value or 5000 per Sl,Voo-
900. compared with 81 80 charged Tues
DAY. Half Of this rate was for ordinary
marine hazard and p cents Tor war
risk Most OF the gold however, was
insured for 10 cents, equally divaded
between the marine and war risk.
None Of the underwriters would cover
any vessel flying the Austrian nag
II the s1s.Oco.OO0 gold shipped the last
two days should be held up on the high
seas for one week, the underwriters
would have to pay over sl5,6oo, figuring
the money as being worth per cent
The New York Stock Exchange con-
tinued to be the only market open for
business. This is what has caused the
enormous volume of selling there.
Gables to local brokers announced the
London Stock Exchange practically sus-
pended trading.
Local brokerage establishments were
crowded throughout the day. Most of
the customers of the several houses de-
sired to be present and watch the rapid
downward movement.
Commercial National Optimistic.
In its monthly summary the CONNER
ciaI National Bank. of this city, sees i'm
proved business conditions
People are getting more hopeful about
the outlook for better business in the
United States" says the bank. 'Busi-
ness men are still cautious, however, and
buying has been on a hand-to-mouth
basis so long that merchandise stocks
are relatively very low. Steady progress
Is being made, and compliance with the
requirements of the new tariff law are
causing no disturbance whatever. What
is more, the country Is well prepared for
the adoption of the new banking and cur
rency system, and II is certain that the
authorities will install the machinery
with the least possible delay.
mo Generalization followed the an
nouncement of the Clafiin failure, and 1t
is certain that the receivership OF the
twenty or more retail stores will be
handled for the best interests of all con-
cerned. Although the failure caused a
great deal of excitement, II looks now as
II the readjustment would not be un-
necessarily prolonged. What is more.
the losses have been so well distributed
that there is not the slightest probability
that they will cause the embarrassment
of any bank or group of banks. The
feeling among bankers has been that the
collapse did not signify anything wrong
with the business situation itself. On
the contrary, the view is generally held
that the suspension was the direct re-
suit Of an oyerextension in one special
quarter.
"It is clear that the crop prospects are
all that could be desired. a record
breaking wheat crop is now virtually
assured. Europe is almost certain TO buy
heavily from US. and before long it Is
probable that only foreign trade showing
will be affected by this inquiry from
abroad. The situation Is thoroughly
healthy and with crop conditions as far
advanced as they are II is fair TO assume
that the total yield of all crops will be
very satisfactory. A bountiful harvest is
still the most important factor making
for genuine prosperity in the United
States. Nothing else Is as influential in
the long run. The country is always
made rich by what comes from the soil,
and in years OF deficient harvests II
has been difficult for the people to get
along. The unprecedented movement of
wheat to market is suggestive of the
forces that will make for unusual
strength in our money market position
later on. 1t is highly probable that
Europe will be forced to send US back
in payment for this grain much OF the
gold that she is taking from the United
States since the year opened.
Investors are still manifesting more
or less uncertainty about the future. but
this indecisiOn is not as pronounced as
it has been. During the last three or
four weeks there has been a somewhat
broader inquiry for bonds, and this has
come from the class OF buyers who are in
variably cautious in their financial ope-
rations. The class of securities being
bought by investors today is so different
from those in demand two or three years
ago as to show that prevailing tendencies
in the investment markets are much
more conservative The public has re-
invested a fair proportion of its July
dividend fund. but the absorption of
bonds has not been at all broad as vet.
There is good buying in small lots. how
ever, and with the return of confidence
this will surely increase.
There is a gradual growth Of opti-
mism and in spite of the existing un-
certainty about the railroads, about pos
sible ill effects of antitrust legislation,
and about politics, people are really
feeling a good deal better than they did.
One reason for this is the expectation
Of bountiful harvest and the indica-
uons that business has turned the cor
ner"