The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-29
NEWS
AND COMMENT
Signs of Increasing Ease in the
Domestic Money
Market.
OUTLOOK FOR HOME TRADE

Tokens OF genuine change for mo
better which hos taken place IN financial
conditions lately. a change which might
be described as a measure OF readjust-
ment TO the circumstances OF the war.
were furn shed yesterday by the lack of
any financial reflection OF the spread Of
tho Boer rebellion In South Africa. Pos
siby tilis was offset by tho war news
from Europe. where the allies seemed TO
be more than holding their own. but in
any case there was evinced no such dis
position as would have been manifested
month ago TO take a disturbed account OF
every happening unfavorable to the allied
cause
Exchange on London. for example. was
no firmer than might have be. n expected
following the severity of It's recent decline,
and financial advices from Europe all
went 10 show that matters were progress
sing toward the restoration OF relatively
normal conditions. incidentally Il might
be noted that further modification OF the
French morator um has been proclaimed.
the third since tho moratorium went in,o
effect. and the British moratorium Is now
within week Of termination.
A shipment Of $3.50. 900 gold was made
TO Canada, but gold exports no longer at
tract much attention or cause concern
Sterling exchange rates fiuctuated around
$.e0 for demand. with cables little
higher and tho course OF sterling bills
that the decline had been temporarily
stayed. Comparatively speaking German
exchange displayed strength. but not
enough 10 DO very significant
Feeling in banking circles Sugsests the
probability OF quotable recession coon
IN the domestic money market The Q per
cent level which Affords the present
M IN be4UASn ienfAy-a
and borrowers OF all kinds OF accommoda-
ton, represents a material relaxation in
the last few weeks, and Judging from tho
cas- er tone OF money all around the mini
mum Is In the way OF rather early TO
duction.
factor IN this respect r. tho forth.
coming Inauguration OF the Federal re-
serve banking system, but 4 Is 20 be
doubted IL views about money are colored
much in financial circles by the official
figures published at Washington rel tive
20 the release % reserves 20 be affected
by the lower statutory requirements o:
the Federal reserve act.
The Treasury Is not altogether we'll
advised IN paradiug estimates % anything
Ike $3.50. O00. ooo OF reserves 70 be freed
flr money market uses. The country does
no; need an artificial stlmulant 20 the
confidence which has been inspired by the
evidence that the financial situation "a
II
could be moro than a little danEe-ou. 20
promulgate ideas that an abundance OF
cheap credit IL about 20 be available.
Moreover. bankers confess themselves
unable 20 accept the Treasury figures
altogether accurate, The huge reserve re-
lease estimated certainly cannot be more
than half cash, and - s going 20 take
time for the Countrys supply OF cash.
whether impounded IN reserves or not. 10
do much more work in the money mar
ket than Il was doing before the great
gold export movement OF 1914 got under
way.
Emphasis currently laid on the grow
ing export trade Is deserved. still there
Is a large field Of domestic trade and in
dustry which Is suffering from depres-
sion. Testimony 20 this was given on
Tuesday when the United States STEEL
CORPORATION directors cut the common
stock dividend from the annual rate OF
per cent. 10 per cent.
Weekly reviews OF the IRON end steel
trade disclose ample reason for so pru-
dent dividend policy. The IRON Age
says that steel makers have poor win
ter prospect ahead OF them. while prices
are weakening The outlook Is very
Ia rgely the result OF the remarkable
absence OF railroad orders with which 10
keep mills running. and this phase Of the
situation naturally directs notice 20 the
tremendous importance OF the decision
which the Interstate Commerce Commits
sion must make IN the near future In the
reopened Eastern rate case
Unless the commissions ruling squares
with the requirements OF railroad credit
IN the financial markets the immediate
Industrial outlook can hardly become
brighter than II Is to-day.