The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-30
FINANCIAL NEWS
AND COMMENT
Loans Negotiated Here for the
Account Of European
Governments.
TRADE INCREASE ASSURED

Favorable facts continued to present
themselves for financial attention yester-
day. In this category must be included
the weekly return OF the Bank Of England,
which showed an increase Of gold holdings
amounting TO $4,000. 900. bringing the total
gain since early August UP 10 t171 o0O, 900,
and incidentally the cables reported that
almost Sc, oO0.o 900 mure OF American gold
was taken for tho account OF the bank
during the day.
A large reduction appeared in tho loan
item. and the ratio OF reserve to liabilities
jumped to almost 30 per cent. rise OF
I2I points and while the reserve proper
ton is only about half last years figure
at this time the improving tendency mas
been established strongly and the bank Is
:, measufably nearer condition more or
less familiar In normal periods even though
emergency measures call now for az enor-
nous gold basis under the structure Of
credits The banks position is further
indication OF n probable termination of the
British moratorium next month without
any disturbing consequences. This In turn
is an encouraging omen for the progressive
relaxation Of tho sterling exchange
market
Foreign exchange was comparatively
steady for all remittance. Demand ster-
ling ruled rather under 400 with cables
somewhat above. Marks again displayed
moderate frmness. The domestic money
market manifested in every respect the
symptoms which foreshadow concessions In
lending rates Among them was the con-
| spicuous strength ard activity In tho mar
ket for short time notes, which is affected
chiefly by the supply OF funds available
In banks hands
| More gold went TO Canada ON account
Of the New York city loan. the sixth In
| stalment OF which was being paid, but
! gold movements have now become an In
| consequential matter. Tho banking com
munity is confident that the supply OF for
egn exchange is In the way of persistent
enlargement rejecting both the more
comfortable position Mt London and the
| tremendous prospective dimensions OF the
| Countrys export trade
| Imports are keeping up very well In
| deed, Washington figures SHOW that there
was in the first four weeks OF October
| an import decline Of only 100000 from
tho corresponding figures last year The
| export movement makes In comparison
poorer showing. but at that October will
| apparently yield an export balance OF
| $40. 0O0, 900. or about twice Septembers
export excess.
Moreover. copper in increasing quantity
| ls beginning TO figure along with other
more normal shipments OF merchandise
and commodities apd the outgo Of cotton
Is growing Yesterdays cotton exports
were about one-quarter of the outward
movement year ago, whereas only a
few weeks since cotton shipments were
from tenth 20 sixth below last years
exports.
Customs figures DO not. however begin
to tell the export trade story. Sentiment
In banking circles regarding the business
outlook, regarding indeed tine prospect
for securities and for all the other as
poets OF finance. has become almost con-
fidently optimistic because OF the knowl- |
edge which bankers have OF preparations
In foreign countries to make colossal pur
chases OF American staples and manufac-
tures.
good deal OF present banding &C
tivity Is concerned with International ne
gotiations for tho establishment Of credits
here. not only for private but for public
employment. The rumors OF week or
80 ago that arrangements were under
way for placing French Treasury bills In
this city have broadened into fact Last
night II became known that a $4,000, 900
French loan had been placed on this side
and was being offered 10 bankers on a
basis Of yield reported as 81 per cent
Nor Is II France only which seems 20
be seeking and obtaining banking accom-
mediation O. this side. There is reason
to believe that loans are being put
through for Germany and other countries
The presumption Is OF course in all cases
that It is agreed that the proceeds OF the
loans ars TO remain here TO be drawn
against for the purchase OF supplies.
The whole situation Is shaping itself
favorably for the solution OF the last
problem OF great difficulty involved in the
establishments made necessary by the
war, the reopening OF the Stock Exchange.
That does not seem TO be imminent, but
II Is coming TO look less and less difficult
as n result OF the international monetary
position which Is being established in
favor of this country. and the resumption
OF regular dealings In securities will be
brought vastly nearer II the Interstate
Commerce Commission discovers the light
in which the case of the railroads Is re-
sarded by all interests except those of
the brand of politics which depends on
the oeaseless agitation of anti-railroad
pTejudices,
Apparently II is litt1s too early 70
say that all OF the main obs acles have
been cleared away in the cotton situation.
There are signs that the scheme for a
banding pool 10 make loans on cotton Is
evoklng opposition in the South where
the demand "a all FOR some more direct
assurance OF boosted and sustained prices, |
and from other parts OF the country
| where 1t is regarded likely 10 have
uneconomic effects In causing a movement
to hold cotton out Of tho market when
what is wanted IL very large and free
Tho Liverpool attitude is also troublesome
TO the cotton trade here but II may be
said that the reopenlng Of tho cotton ex-
changes will do more 20 relieve the cotton
| situation than all the articles 20 which
resort can be had
The construction which bankers placed
on the circular OF the Federal Reserve
Board relative 10 the transfer OF reserves
in gold to the reserve banks was that
the supervisors OF the new system desired
to relieve the reserve cities and central |
reserve cities 10 the largest possible ex-
tent OF drafts upon their resources which |
might involve detrimental dlslocaton of
funds II was n curious commentary on |
the oStentatious parade OF figures which !
the Treasury had already made regard |
ing tho hugo volume OF reserved which
the establishment OF the new system
would release.