The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-18
YORK BANKS
|IPf OUT DEFICIT
Cash RESERVE
ILEN COLLATERAL LOAN MAR
KIT Is RE-EsTABLISHED FOR
r1RST TIME SINCE BEGINNING
o. wAR-CAIL MONEY AT
- Gent.

New York, Oct. 1.-THE bank
k{Sment was again a highly favor
sSnn1A document. The striking feature
M8& the return was the practical WHIP
S&&f but Of the deficit cash reserves De-
IT, less than si,opo,h less than
1 rS9niar requirements. Moreover, in
N4&W OF the fact that the figures now
NDnhltshed represent only the average
3n0dttion of the banks II ~ perhaps
411f TO assume that the actual cohdl-
41uG1a II they were made public would
Aohow the deficit entirely eliminated.
3kN Improvement was accomplished
L fa0FtiAlly by u further contraction IN
Ss aoans. If this reduction was less
" 4nArked than In previous weeks II was
highly 81 ssfactorv as
1n4icAting a further LIQUIDATION at tho
Han position built up prior 10 the
/ outbreak of the war
n The Improvement in the position OF
m local banks now confirmed by the
Ho3aarang house statement was plainly
B 30reehadowed by various developments
Y during the week This Improvement
NA1 exhibited, FOR instance, in tan
2tblo way by general lowering 81
rates on outstanding stock loans fol-
1oWing action by the First National
04Qk In offering money on call at I
M cent The significance of the lat
g 4DR H1GFC Is HtaSn HBtSt - Is fNHatkstN
that Il marks the re-esta biishment OF
Nh open collateral loan market for the
ftrBt time since the outbreak OF the
war Considera bic amounts of money
were loaned on call at ! per cent and
II FEW time loans On exceptional col
lateral were reported as low az
per cent. Also In the case OF com
1 3s4efcial paper there vas con .tnlef
A1aAding until business wes done az
y TarI1
4 pOr4Ance Of this relaxation OF the
Ma0ney market is emphasized by the
O35portunity afforded foF further
xtfSngthcning Of the stock market sit
uattpR proper
yeseaIs,ism Gradually Disappears.
ouring the early part Of the week
there was noticed distinct Increase
L Iii pessimisrn In the Wall Street dis
trtcf. evidently Caused fly ffte news
xronn the ,heater Of war Curiously
enough. however confidence strength
4Yf&d later when 1t became obvious
that the allies We're holding their own.
Z although there was no dimInution OF
the general idea that the events as a
whole emphasized the rrnba billy ef
nsprolonged conflict
The sterling exchange. market was
Armer. rates indeed rising to the
highest level since the formation of
az tho market has resulted from con
tIrued covering ny speculas nrs who
eefd the market short on expectations
uf big drop In exchange The first
~ per cent installment Of subscrip-
ffons TO the gold pool WAS called fer
laAt week and the gold is now com
ing in. So far however, the opera
lions of the pool have been confined
~ Supplying Of exchange where ahso-
lutte necessity required accommodation
ar where the market would have been
<lisiocated had the demand been re-
4erred to it,
High hopes have been entertained
that the visit nf the British financial
authorities will he productive Of sub
stAntial progress in putting interna-
fional finance upon a solid footing
II may he taken as another sign Of
returning confidence that there Is In
crcasing agitation on all sides for p
more determined attention upon the
problem of reopening the Stock FIX
change.