The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-08
FINANCIAL NEWS
AND COMMENT
No Apparent Market Response
to the Tenor Of War
Advices.
BRITISH TRADE HARD HIT

Considering the nature OF the war news
a definite response might have been ex-
pected from various financial and other
| markets yesterday. The notion that IA
vorable financial Developments are depend
ent on the ability OF the allies 70 hold
Germany in check did not. however. ex-
press itself in any adverse change In
money conditions. either at homo or
abroad. nor was the news from tho seat
of war otherwise obviously reflected. The
fourth issue OF s75.o0o,0o0 OF British
Treasury bills was readily placed and
London advices were all to the effecs
that money was becoming increasingly
easy. while there were rumors of the
adoption OF further novel measures In
preparation for the resumption of deal
inRs in securitiea
1t might be noted. however, that In
other respects the dispatches from abroad
showed what damaging economic effects
the war has been having. The passing
of the Rio Tinto dividend was OF world
wide Significance because of the prestige
which this historic copper company en-
Joys The British foreign trade report
for September showed a drop OF more
than ISL, 900, 900 In imports. exports de-
clining almost s7e.ooo.o0o. Incidentally II
might be added the British importations
OF American wheat and -four were $780,
600 larger In value than in the corre-
sponding month In 1913
Foreign exchange seemed TO be held in
check by the invisible supply which the
gold fund committee controls Early
trading was around AS for demand ster-
ling and 4.97 for cables. Prices eased of
in the later dealings. shipment of $780,
000 gold TO Canada was announced, pre-
sumably on New York city loan account.
No particular basis seemed TO be af-
forded for talk which was heard that
the money market would show some re-
Taxation before long. II IL quite possible
that rates may lower little, but II Is
doubted that there viii be any material
decline while Clearing House certificates
are outstanding and there Is in circulation
a substantial volume OF emergency cur
rency which II so much money borrowed
by tho banks At the same time the re-
dundancy OF currency has already led TO
consideration by some banks OF the ad-
visibility Of retiring portions OF their
emergency issues.
There was not much price change IN the
wheat. corn and cats markets. Cotton
trade interest was centred IN the project
for a banking pool TO lend $3.50. 900, 900 on
the crop, but the real way 30 relieve the
cation situation Is 10 make financial pro-
vision which will facilitate tho opening
Of the cotton exchanges.
The Government crop report added lit
tie 10 previous information about the
years agricultural results Estimates
~ the corn yield were raised little
to n total Of o.676.000. 600 bushels. which
Il o3O. 900. 600 bushels more than last
years harvest The rctal crop Of wheat
was placed at as2,o00.0oo bushels. or
12S. 900, 600 bushels above the previous
record and from the standpoint Of foreign
trade the huge wheat yield OF the year
will go far toward offse.ting the shrink
age In cotton exports, for the foreign
purchase OF our wheat will be more
than proportionate to the size OF the
crop.
The Iron Agcs weekly review Of steel
trade conditions contained some sug
geStive features. New orders In steel
were reported to be in a state OF continu-
ing contraction. which corresponds with
the steadily decreasing volume Of pig Iron
production and must affect operations nj
the steel mills A large reduction In for
ward business Is indicated by the United
States Steel Corporation, and hint was
conveyed that tho corporation might be
contemplating the eventual necessity OF
w,ge reductions, which naturally raises
questions about the maintenance OF divi-
dends
Rumors that banks we're beginning 10
ask for % per cent margins on loans
on collateral security were Investigated
| during tho day. Inquiry ehcited the in
formation that there was no concerted
movement ~ the sort II was also said
that in some cases margins on loans had
been requested on the basis Of the slightly
| lowered quotations which have been es-
| tablished in outside transactions.