The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-10

In much tho same way the FIRST efforts
10 contrive q solution OF the problem pre-
scented by the deadlock OF the foreign ex-
changes came around 10 appreciation OF
the dependence Of the international money
market on the nearby events In the Euro
pean war. Conferences held Ivy foreign
exchange bankers were for the most part
series of futile discussions tangled up
with the various pre1udices and prepos-
sessions Of the confereeB. The one scheme
which received any general subscription
proposed the formation OF large money
pool here against which Europe could
draw. but the project was left rather In
choate until II could be seen whether or
not shipping was going to be released
from It's war risk embargo.
II came no he perceived also that the
interests OF other nations In lifting the
embargo IN international trade and
! finance were even more desperate than our
! own. and Il was noted that endeavor was
] being made abroad 10 relieve the paraly-
! sis. That foreign Governments would at
| least IN respect TO necessary commodities
| and goods guarantee both tho war risk OF
seemed probable. Meanwhile Paris took
tho Initiative with the establishment OF a
| credit Of So O00. 900 with the Morgan house
| In Paris In leading the way toward a
| resumption OF foreign exchange dealings.
| London readily offering TO follow tho ex-
ample. Once a way In found 10 get our
goods out OF the country the outstanding
debit balance against us on international
account will be speedily iqu!dated and
before long huge credit balances will ao-
| cruz IN our favor. This means In turn
that domestic business will be freed from
| tho barriers which are now tracking II
up A promising plan for ending the IN
ternational financial deadlock was indi-
Gated in tho National City Banks scheme
for a foreign exchange clearing house
other Aspects of the War.
40 far as regards tho wars further
| effects here We know IN a general way
| that It will give the merchants and manu-
| facturers OF me United States a chance
quickly 10 enter and establish themselves
In markets which they could not other
wise successfully encroach upon 10 any
large extent for years. Tho belligerent
nations will need vast supplies moro
readily obtainable here than elsewhere
and IN the meantime they will not be pro-
ducins and shipping goods 10 the peaceful
nations which arc thar large customers.
Tho necessity of Selling upon the oppor-
| tunities thRt are presented Ia going 20
give stimulus 20 American enterprise
and energy which will help TO overcome
| the troubles and obstacles that tho wa
has thrown In the path OF the opportunity
which II has created. Tho manner In which
the country has CLOSED up the ranks OF
| political difference and prejudice 20 cope
with tho emergency u a guarantee that
support will not be lacking for every
movement that promises TO help tho
United States to realize to It's benefit the
economic chances that offer. Tho com
pletlon Of the Federal Reserve Board Ia Of
most hopeful ausiry in this regard.
An the unsettiement of prices, tho rises
and declines which have taken place in
various markets for staples and manu-
features are only part OF the process of
adjustment TO war conditions When ad-
! Justment hiss been more or less COM
! pletod business can be done al Tho new
price levels and In some cases perhaps TO
better advantage than before the change.
II cotton falls Il will help the American
spinner and the South will not suffer in
tho long run A decline IN copper will
enable the American consumer TO pro-
dpce in Increased quantity for foreign
narhets. Tho shutting of OF the POSI-