The Cairo bulletin., 1914-11-03
THE FINANCIAL
SITUATION GETS
BETTER DAILY
In Spite of the Heavy European War
Cloud-Marked Progress in
Exchange Situation.
COTTIN HAS BEEN GOING
FORWARD VERY FREELY
Easy Money, Better Foreign Ex'
change, Good Harvest and Ex-
port Trade Good,

New York. Nov. 2.-The finan-
tial situation grows brighter almost
daily in spite of the heavy European
war cloud. The past week there
was marked progress in clearing up
the foreign exchange situation and
the restrictions upon credit, foreign
and domestic, are being gradually
lessencd. One of the most striking
evidences of improvement has been
IN the recovery OF our forign trade,
particularly in exports, from the ef-
fects of war shown in the Septem-
her statistics. In that month VT
will be recalled our exports declined
$62,000,000 and our imports S3l,-
100000. the loss in exports being
large in cotton and the loss in i'm
ports being chiefly in manufactured
products. Our export trade during
the current month, and especially
during the past week, has ben par
ticularly active. The increase of
raw products and war supplies has
hetn very conspicuous Cotton has
been going forward very freely; and
the announcement by Great Britain
that cotton will not be considered
contraband, even to Germany, in
sures a continued free movement of
this staple. This of course will
materially relieve the cotton situa-
ton, and will also serve to settle our
foreign debit balance and check
gold exports. To the South, which
is largely dependent upon foreign
buying of cotton, this movement
will be particularly welcome, even
if cotton does go out at a very low
price. The proposed cotton loan OF
S135, 100000 under the management
Of a committee Of the Federal Re-
serve Board has received consider
able support, although there are
some doubts as to its legality. The
plan Is meeting with much favor,
particularly in the south, as n mat
ter of expediency in great emerg-
ency. The Federal Reserve Banks
, will open about two weeks hence.
This ingIres additional relief and
ease in the monetary situation. Bar
ring any temporary local stringency
which might accompany a transfer
of funds to the Federal institutions
it is estimated that the reduction
in reserve requirements which will
follow this operation will result in
an expansion of possibly S300. .000,-
600 in loans. This should insure
continued ease in money, and will
materially facilitate the retirement
of clearing house certificates ant
emergency currency which have al
ready been withdrawn to a consid
| erable extent.
These five conditions easier
money, better foreign exchange sit
uation, early opening of the Fedora
reserve banks, improvement in oul
| export trade and a good harvest =
are the five brightest and most en-
colira ging features in the America,
business situation, which in othe
respects is still very unsatisfactor!
and passing through a critical per
led. 1t is not desirable to dwell tot
strongly upon the discouraging sid
Of affairs, yet it would be danger
ously foolish to ignore the many un
satisfactory conditions. Bank clear
ings are still running rs per cen
below year ago, the decrease bcini
i greatly emphasized by suspension
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