Evening star., 1914-10-11

be made in the usual way by an ex-
change OF credits.
The gold pool as a remedy for i'm
paired national credit IL not a new de-
vice, such
Gold Pool Remedy pools having
for Impaired Credit. t,1c tw,c, '0i,eeora nesora
in the last two decades. The present
pool, however. is more national In char
acter and probably represents the first
national cooperative effort of bank
ers to sustain national credit Credit
for the success of the movement is
given, in large part. to the new fed
eral reserve board.
While the new system of national
banking is not yet in operation, the or
was used to make an appeal to the
bankers of the country upon a purely
national basis The success Of the
boards efforts in this respect has
one. 1t not only gives assurance of
cooperation by the bankers. but 1t
also forms the basis of q firm belief
that when the new banking is put into
operation such difficulties as have been
experienced in the last two months will
be handed in a much quicker and a
much better way.
The foreign trade balance. upon which
depends a cessation OF foreign de-
mands for our gold, is being accumu-
lated chiefly through exports Of wheat.
nour and other food products which
nave already broken all previous rec
ords The export of Manufactured
articles to Europe is also showing a
Is good reason to believe that within
another two months time the balance
against us will be wiped out and Eu-
rope win be owing us more than
debts and security obligations.
Inese improving conditions are
noted, In spite of the fact that our ex-
ports of cotton, upon which we chiefly
depend at this time of year to create
our foreign balance, have not been
resumed in anything like the ordinary
volume.
New York bankers are showing a dis
position to recognize the improved con-
ditions. Last
Renewal Of Loans week when
on Ninety-Day Basis. pired I4 e or on
stock collateral the banks. in many
instances. suggested to borrowers that
perhaps they would prefer a time loan
at per cent instead of continuing
the per cent call rate. In response to
this suggestion, many loans were re-
newed in this way at per cent on a
nfnety-day basis. carrying loans into
January and past the first of the year
The position Of the stock exchange
has not shown any material change
There Is still a great deal Of talk
about the opening of the exchanges.
but at the present time this seems to
be based more upon desire than any
thing else. Dealings in listed stocks
have been limited to very small trans
actions, and these have hardly been
satisfactory in nature
Bond sales. On the other hand, have
been resumed on a better basis by
means of effecting sales at prices ap-
proved by committee. The high in
terest rates established by new short
term issues put out since the beginning
of the war are taken to mean that
many Of the older bond issues will have
to be redeemed at a higher rate of in
terest, and this has a favorable in
fiuence upon the investing public. New
long-term bonds hardly will be loated
there will probably be a constantly in
creasing supply of high interest-bear-
ing short-term bonds Recovery from
panic conditions has made investors
willing to take UP these new loans
While, of course, there is no perma-
nent improvement in this increase of
interest charges. SO far as industry is
concerned, it does have a temporary