The Washington herald., 1914-09-30
COMMERCIAL ON
U. S. FINANCES
Local Bank Says Situation
Shows Steady Improvement
and Outlook Brightens.
RESERVE LAW TO AID
F. B. Devereaux Placed on Executive
Council of American Institute
of Banking.
RESERVE LAW TO AID

The Commercial National Bank of this
city yesterday issued its monthly financial
outlook. The bank regards the situation
as showing steady Improvement and with
rare exception the banks are accommodate
ing legitimate borrowers.
The statement follows
The financial situation has been much
improved by the relief movements under
taken in various sections to bring about
normal conditions again in the markets
for money and exchange. There is less
strain upon credits than there was
month ago. and although the demand for
money still exceeds the supply. all legiti-
mate borrowers are being Accommodated,
and mercantile interests everywhere are
receiving generous treatment from the
banks. II has been A very difficult situa-
ton, however for no such complications
were ever encountered before. But peo-
pie Epnerallya re telling beterwOdeCid-
did. and although business is very dull
vet there is a better undertone. What
is more. manufacturers are making
steady headway in adjusting their busi-
ness 10 the new conditions created by the
great war in Europe. Many are seeking
foreign markets in the effort to secure a
portion Of the business that was previous
ly handled by the industrial enterprises
Of Germany and other belliEerent nations
This is a good sign and shows that
from the European wa= may open new
avenues for foreign trade
Some branches Of business will be
stimulated by the war but the setback
caused by the disturbance abroad must
be felt UnpleasantIy for months TO come.
The United States. however. is in no way
connected with the conflict, for this gov
ernment has been most careful to see
that nothing is done to bring out peo-
10 CT ENT-ng gfd
has rendered conspicuous service to the
country in doing what he has done to
make ii impossible for any Of the belli
Eerent nations TO take offense at the at
titude of the United States. 1t is of the
highest importance that this policy should
he continued for the time may not be
far distant when the good Offices of this
government may be avsiled OF to initiate
the peace negotiations which shall put
an end to the most disastrous struggle
that the world has ever seen. The war
is so terrific, and its complications so
serious. that il would be Of the greatest
blessing to mankind If the United
States could play a leading part in the
peace negotiations There is no telling
how long the struggle will continue, or
what the further developments will be:
but the situation is such that the whole
world is hoping for an early ending of
the war in the shortest possible time.
Some criticism has been heard about
the attitude OF an occasional bank in
building up a larger reserve than it had
actual need Of In this way it is said
the financial situation has been rendered.
more difficult for borrowers and that
some Of the relief measures adopted have
been less effective than they otherwise
would have been. This criticism may
hold in certain cases. but taking the banks
d whole, il certainly does not apply.
There never was a situation of financial
unrest when the banks as a whole have
acted better. Because of the splendid
service rendered ny the Treasury officials
ii has been possible for the banks to
do more than usual in behalf of people
who really needed assistance. And they
have responded TO such demands To the
hest Of their ability. The indications are
that conditions. will continue to improve
from now on. and that within a reason
able length Of time it will be possible for
most OF the clearing houses that have is
sued loan certificates to retire them and
to depend upon their usual cash re-
sources and their emergency notes.
The new currency system will be soon
installed. Then it will be possible for
tho banks to rediscount their paper with
the regional banks il it is necessary for
them TO secure such assistance. The fact
that the banks will have recourse 10
such a reserve institution will no doubt
have a good deal of influence later on
upon money conditions and money mar
ket tendencies. The Federal Reserve
Board has already perfected most of the
arrangements for the new banks so that
the machinery can he set in motion with |
rela lively little trouble II will take some
time for the country. however, to get
used TO the new service, and it may be |
said that banking and currency experts !
throughout the whole world are watch |
ing the experiment with the keenest in !
terest. The system will work out well |
in the end and will be Of immense serv-
ise TO the American people at just the |
time when they will need the facilities |
in connection with the preparations for |
new business which will develop after |
the war is over, or before it is over, in |
case the conflict should be much pro- |
Ionged."
2 B. Devereaux of the National Saw