The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-13
FINANCIAL NEWS
AND COMMENT
Bank Statement Shows q Rcduc-
ton in Reserve De-
ficiency.
EFFECT OF THE CITY LOAN
An Important Factor in Improv-
ing Foreign Exchange
Market.


ALTHOUGH yesterdays hank statement
showed a loan expansion % S26,oO0.OOO
Oh. ne, resrlt Of the weeks operations as
.uat,a,,a ., ,, .,,r,-c nt.,tr,. vas a
=. 200 ono 4, ,,.
reduauon OF 'no'e '''' f-''''O'' ." ''''
reserve q ncicncE. rus Ha'u'dHF p"'
the hanrs where iu,y we're before the
,ur,, ~ m, month TIL. d.pusit Increase
,,,s ooo ooo ,.,f.. ID, ,.,sl, ~ abolt
- h.. H.. 80,
so'1uV'oV'' WHICH Woo ""''' 30 '''
preliminary estimates. made isir teen
nical balance with tho change IN the loan
,t.m Circulation has continued % CA
,,.od "A ,hou,n nv ia. $40 600 600 adj
p~4'"' -
o'uon IePoTto" ~ 80 .'. ~, -,
currency ~ We u "pN''dr'g p"Sl"h SO'''
iaIt iu the fic''Ht''H "f current dust
meas NJ.
In All pro- t"l''. 'n' co. i'. i'",'. w" y.
tic banks does h't ''''''t''' N''" '"7
cNhiul OF average '"'ll''''i' t"e '"'i
pehon ct w, CITY '.'H "'' ~ 1''' ,o''
ilaco toward tue 'hl '' ''v 49, o., -,
she transaction S"u'" "'' &c lulf Nv. ""
IN tue psnk sld'ciHt"" IL 70 ~ ~
lecture that tho gam IN loans 'r,t'n",eu
largely IN thiS operation anu tlst ~
actual expansion WAS greater imam NV
average ms ehoWh 49,
tins FORMAL CONCLUSION OF w. ~ va.
contract was altogether ois OF tne u,Ose
original arrangements were modInon oHs
in respect 70 the provisions lot tuluI,
financing, ana these leave the o''y sur
pledged 20 practice OF ecoHon! ouIHHs
the balance OF The present S'lh''ils' 49,,
which cannon ihil 20 tst"n"s. q oei'eu,'
policy th'r"dIto', '"o 'oH ,',N 80 49,.
l'gerve exhibited by TIE io'aI oanh'Hs
community IN TalYng 10 the support .,
the city IN order to 'eK" care on ts
maturing ohligaNpnh Nui'h p''"Nlp"'.-
fall due abroad "a7 iur"SHcu uN' % ,no
chlef influences tor ilpro'eH'elt vi ."'
international money hArRet S"u W ~
provement Ia the iortlsh cNcHSnses inc
solution OF all tho other economic prop
lcms which the war mas thrust upon u
IL very greatly dependent ,.-
Tho engagenent OF New rork oanNers
10 furnish ssooou pon g"ld II u-ceSsa'
30 take up TIE city d'o's du,oau I''''!iu-
SAL 10 stimulate foreign commence IN tn'
stability OF American enterprise and tns
goundness OF American hlsC'u''ons' 'lu
the consequences Of TINS action VIII con
7lnue % reveal themselves IN thc ihohl's
30 como. II Is already peieNer .I'' Wv
international Hoht! haVHel 'dS pecH ou
f,c,cntly helped by Il 20 pcrnli the pos
,onement ~ the consideration or ne
st50OnO OO0 god uuderw rltiuS sthen'
proposed FOR the hI0Ks ~ the whole couh-
try. The postporelneht OF oe'.>''n ny ",'
Federal Reserve Bodrd ON l'l7 supJ'', Va
.ndced CNIdeh'c "l ''c ''|,l -
city loan arrangement Hhs hN,A"f ',h"'
90 work IN the international eNc7ahfes'
Sterling exchange held rather ntu"y
around and below ." during tne "eV'
because there was a good demand '"r r.
rnittance not only on the cltys account
but because OF n variety OF accrung &c.
~isn debts Al the same time Il held i''
decline and the aspects or foreign eA'
change were promising 10 many "aSs
There was a reported increase o, cotton
bills and a fair supply or grain nlHs' etl
the stuatlon was helped by the ab.h'y o'
the easing London money market 70 mhh'
ao,eptances OF American paper Also j
moderate amount OF EXCHANGE on othri
foreign centres than London became ava IL
sble
Whether on account OF rumor. or peace
efforts or the signs 81 possible chanr'
IN tho turn IN the TIDE ~ the var ITSELF
wall Street acquired feeling OF hope
fulness that the European tpf0ct "ou'