The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-09
FINANCIAL NEWS
AND COMMENT
Indications Of More Comfort
able Domestic Money
Conditions.
TINE LOANS IMPROVING

Although ~ ia not expected that while
there Is any considerable volume OF emer-
eency currency and clearing house GER
tlrcates outstanding the domestic money
market will have any material decline
in rates. there have been unmistakable
indications this week that money was
getting into more comfortable position.
Probably this reflects more comfortable
feeling on the part OF bankers as re.
suit OF the way In which the strains and
stresses of an unprecedented situation
have been endured without disastrous in
cidents
Il is altogether likely that the derange-
mont OF the foreign exchange market, the
blockade u funds involved In the suspen-
sion or the regular eecuritN ana cotton
markets aud the contingencies Of the war
itself will prevent domestic credit rates
from falling much IN the near future,
hut easier TENDENCIES are cviucing them
selves and what Is uf most consequence
60 borrowers the outlook j. for a larger
provision Of accommodations The con-
trlbuting causes Of such hcttermcnt ~
money conditions manifest need not be
discussed ~ the moment hut the facts
arc that bankers themselves are begin
ming to talk Of money In terms of less
stringent control. and inquiry yesterday
revealed number Of reasons for asserting
that the money market is IN the way Of
Improvement.
Call loans on collateral security have,
IL IS said, been negotiated iu the last
few days tr.he lower thtn 8 per cent.
on ample assurances that the loans could
and would be paid when called. There
has during the week been 9rcer IbSorp-
ton OF commercial paper not only locally
but in other parts Of the country and
various banking centres are reporting
fba f..1tftes "a outlook
for money is noticeable here.
A very Interesting development is that
relatively there Is a much better business
In time loans on Stock Exchange coll
lateral Dealers reported yesterday that
there was more lending on time than on
any day since the beginning OF the war.
Loans were placed at from To ~ per
cent. for maturities ranging from four
10 six months and there was some renewal
Of ninety day loans at per cent
The widening OF the market for COM
mercial paper seems also to have brought
some shading OF discounts with 1t and
the optimistic aspects Of the market for
short time notes are pronounced The
bargains which were Offering In notes
only about fortnight, or 50 ago have
vanished and procurable yields have
fallen from y 20 "a OF l per cent In the
Interval. That monetary Improvement
has extended to the market for capital
a steadily increasing business in bonds
10 being done daily through the Stock
Exchange clearing house,
n would be very encouraging indeed
n the tendencies in the domestic money
market We're receiving any ASS, tance
from International financial conditions
but they are not. Perhaps 1t will not
be long before the situation in the foreign
exchanges is Strengthened out. for there
IL every proba bility that international
conversations of n most important char
aoter Will take place soon. their purpose
being to contrive solution for the prob
lam which foreign exchange presents.
There IL need % n solution. cold &C
the amount of almost Si,5GO,OO0 was sent
10 Canada yesterday, and the total which
has been shipped on Tho New York citS
loan and gold fund accounts In thc las
three weeks IS about $1,000 600, bring
ing the country's gold exports for tn,
year up to more than 100000. 900 We
the London money mgrhe, has not mad,
q satisfactory RESPONSE to American bank
Ing efforts to restore workable sltua
lion IN foreign exchange
Whether or not anything can be &C
oomplshel along tho lines of schem
for an International clearing house 70
foreign exchange, and something OF tn
sort would seem possible, British flnanc
should cooperate to a greater extent tina
II has done in promoting return O
foreign exchange to a reasonable position
As 1t happens war measures are I'm
creasingly complicIt!ng our difhcutie.
because the British embargo on Germa
finance has extended to this market an
Ia preventing the sale of sterling bills q
bankers who have German connection!
This IL curtalling supplies of eXchang
hero and Is presumably the real eXpla
nation for the collapse OF reichsmarli
For the rest the situation Is indicate
by the further rise of sterling remittanc,
demand selling Mt i.97 and cables AZ AS.
The Bank of Engiand's weekly retur
only made the situation more puZzling b,
cause, making all allowances for resort
srtifice In tho London money market All
for the burden which the war imposes, III
British banking position Is conducive I
the grant of more assistance to our banl
ep than Is being rendered. Tho go'
holdings of the Bank of England are no
rising with phenomenal rapidly to r.
markable totals, the latest gain bein
more than S19,000,00O. and the bank ha
never IN its history possessed such a n
serve as to-day.