Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-13
GOLD FUND PLEDGE
BENEFIT TO TRADE
REGARDED as Most Notable
Achievement of Week in
American Finances.
WHEAT is LOOKED UPON
AS BAROMETER OF TRADE
Spectators Thirk German Sue
cesses Mean Prolonged War;
Defeats a Shorter One.

NEW YORK. September 1.-THE
weeks notable achievement in finance
was the perfecting of the bankers plan
for reopening the foreign exchange
market by subscriptions to a gold fund
Of $150.000,000 from the banks of the
whole country, to be available for de-
post in Canada to the credit Of the
Bank OF England. Advices from WASH
ington indicated, however. that condi-
lions are now so much relieved as to
make the actual contamination of the
plan unnecessary.
Bankers said they appreciated that
any resumption of the country's COM
merce must depend wholly on re-es-
tablishing the exchange market
The proposed gold pool. the 500. 000.-
900 New York city loan and advances
to southern banks to finance cotton
holdings made their influence felt In
hardening money rates. Future rro-
tai with any resumption of relations
with foreign markets must depend. In
fact on keeping up interest rates to a
fguree which will keep capital at home.
Wheat Reflects Opinion.
The price movement in wheat, the
only available medium for speculation.
continued to reflect the opinion that
German reverses might shorten the
war and German success prolong 1t.
On this question depends not only the
period for which Europe's great central
banks must be strained with the guar
antees they have given of uncollectable
commercial and exchange discounts.
but whether these shall be ultimately
collectible at all
The government crop report dis
closed that excuses Of yield of food
crops was confined practically to win
ter wheat Measures of railroad re-
trenchment accompanied the appeal to
the President by railroad executives
for 1enient treatment by the commerce
commission. The Presidents response
to this appeal had a hardening effect on
financial sentiment Decreasing de-
to lack of capital for new enterprises.
Influenced by City Loan.
In its loan Increase Of s2s.000.ooo the
bank statement reflected the shiftings
Of money incidental to the city loan,
the success of which has gone far to-
ward dispelling recent depression. a
substantial cash gain and further
reduction in the deficit in cash reserves
were the other noteworthy features o:
the exhibit.
The depressing effect Of the European
war upon the iron industry was evident
this week. Some export orders were
dlled. but they were small. More inquir-
les of a tentative nature. On export or
ders steel mills were asking 81 and So
per ton higher than at the beginning OF
hostiiities; consequently foreiSn consum-
ers were slower to buy. Some OF the ne"
inquiries were for rolling bil.ets and fors-
ing blooms for export to Great britain.
Orders were placed for AUD tons OF low
phosphorus iron for England. Bids are
being taken on 1000 tons Of Bes-
semer iron for Russia.
Domestic Business Contracts
Domestic business suffered further con-
traction, Small orders for railroad equip
ment were accompanied by light contracts
from domestic manufacturers and even
buytnr of wire, sheets and tin pale was
smaller in volume. Specifications against
contracts with the exception Of tin plate
vere lighter and mill and furnace opera
tons were reduced
Th. limited states Steel Corporations
Aa9nst At ,tement indicated that orders
booked last month were a. the rate
Of *. 500 tons daily. against $4,000 tons
in July. August shipments were about
sl,70O tons daily. against $1,000 tons
Steel building work was again light.
but the railroads placed bridge work
will 20 In on $4,000 tons more next
week. The largest order iced was
1900 tons for the Pennsylvania rail-
road span over the Allegheny river.