The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-03
FINANCIAL NEWS
AND COMMENT
Solution Of Problems Hampered
by Doubt About Length
" the War.
FOREIGNERS TAKE STEEL
Importance Of Federal Reserve
Board Conference Ut Wash
ington Tomorrow.
FOREIGNERS TAKE STEEL

No very definite addition was made
yesterday 10 the sum total OF progress.
achieved so far In the solution OF the
problems created by the European war
There was possibly some basis In the
war news for conjecture that conflict
which was being wagcd on such a CO.
lossal scale and at such terrific pace
was the more likely TO terminate early
on account OF the exhaustion OF the ma
lions. Still there is nobody In the finan-
cial community who is willing to make
calculations dependent on the approx
mate length OF tho European struggle.
The time factor Is. however, one OF
the difficulties In the situation. Its very
uncertainty Ia source OF great trouble
because all interests engaged In contrlvlng
financial and commercial readjustments
are hanpCred by doubt as to whether or
not arrangements should no OF an cmer-
gency character only or should be of q
more permanent order.
Advices from London suggested that
despite the extension OF tho British mora
forum for a month the London financial
markets were making encouraging head
way toward a restoration of a semblance
OF normal business activity. September
will at least be occupied by British hnan-
, cial leaders in an effort TO resume stock
market dealings In some fashion because
tho pressure for facilities with which to
render security positions liquid Is increas-
Ing abroad as we'll as here. Incidentally
II might be noted that the reported clos
| Ing OF the Paris Bourse was OF no special
significance because no Significance has
| attached TO the dealings OF the French
/ official market, which had only remained
/ nominally open.
Indications OF the foreign exchange
market were that the supply OF exchange
might have an carly enlargement as a
/ result OF the improving London situat on
/ There was talk Of the possibility that in
| the near future London would begin to ac-
/ cept our bankers bills with moderate
/ freedom, although after It's unfortunate
| experiences this summer American
| finance will not readily overcome a re-
| luctance to anticipate very much any
Noluminous export of goods and com
modties. The tone OF foreign exchange
was reported slightly easier because OF
| the completion OF settlement arrange
ments for the turn of the month but
sterling was firmly held around sos y
FOR demand bills and 507i: for cables.
The quantity OF export bills is as yet
| far from considerable, but the aspects
OF the grain market were gratifying in
! their continued exhibition Of export or
dering. A degree OF optimism should also
/ be- promoted by the authoritative reports
! Of conditions In the steel Industry. Tho
! steel trade. IL is said, is chiefly inter
es..d at the moment in the possible d..
! mcusions OF export business. There APP
! pears to he an expanding aggregate OF
/ inquiries from foreign quarters for Amer
! lean steel and striking feature OF the
| market liz the way In which foreign Or
/ ders, originally placed with German max
ers, are being transferred to American
| manufacturers at substantial advances
over the original prices
II is becoming more clearly recog-
! nl2cd that a realization OF the general
| foreign trade opportunity Is not de-
pendent on producing and shipping IA
| cllties. but upon the country's ability to
| finance an external trade movement
| There can be little question that, whatever
the progra mme OF the conference which
the Federal Reserve Board has called for
tomorrow in Washington, about the most
/ important subject discussed must be ways
and means TO supply capital to foreign
markets and extend the credit by which
goods can he moved In foreign 4rade.
Despite all that Is now being said about
the inadvlsability OF establishing the new
I banking system In a period OF so much
strain II may appear that the advantages
/ which the Federal reserve system can con-
fer in the way OF capitalizing the coun-
try's resources and making the fullest use
OF its banking power will be OF much moro
consequence than the disadvantages OF
system to another at this time. The Fed
era Reserve Boards authority to suspend
reserve requirements should go far to re-
move some OF the obstacles In the path
Of an immediate establishment OF the new
ba hiking organization AT all events. the
Washington conference seems to be the
most important matter OF the moment be
cause OF It's suggestion that the Federal
Reserve Board may be about to assume
leadership In the direction OF financial
affairs which can enable the country &c
deal most effectively with the problem,
which have been thrust upon US.
. The fact that representatives of bond
houses decided to postpone for fort
night the meeting which was to have beer
held yesterday to consider a partial sus
pension OF the embargo against ordinsr,
investment dealings In securities showeC
that 30 far II has not been possible e
determine a safe line OF action. Routine
news included the announcement OF th'
regular Atchison dividend. Wheat wa.
! firm, but the principal strength In th'
agricultural markets WAS In corn, which
responded to respected private estimate
OF a fail OF about points In the con
dlton OF tho crop during August.