The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-06
FINANCIAL NEWS
AND COMMENT
Some Signs Of Improvement in
Money and Banking
Conditions.
MORE TRADING IN NOTES

To none OF the questions in which Wall
Street Is most interested did events over
the week end make distinct contribu-
ton toward an answer yesterday. The
news indeed showed that tine war factors
were as indeterminate as ever and all oal-
culatious about the course OF the money
market. domestic and International, the
resumption of regular business In the
securities market, the tendencies OF trade
and industry Ia the state OF employment
have to admit the large unknown guam
tity of the war to the reckoning.
Meanwhile II was still possible tn say
that a careful consideration OF tho finai-
cial and commercial situation AZ home
and abroad Indicated that hore and there
progress, slight but stlll progress. was
making In various directions toward an
outlet for business Adviccs were 20 the
eject that conferences we're going Oh In
reference 10 tho opening Of tho London
Stock Exchange, although Wall street Is
not at all inclined 10 Credulity respecting
the prospects for an early restoration OF
facilities for trading freely In securities
until more evidence L. presented OF salts
factory preparations 10 guarantee values
and positions against excessive disturb
ancc.
There was satisfaction IN foreign re-
ports 81 central banking conditions in
the principal belllgcrent countries dis
closing unexpected strength. although the
returns sppe Lre1 10 defy analysis. At
tertion OF this kind IL. however, directed
chiefly toward thc situation at London,
which principally Affects American finance.
Wall Strrct Is srll waiting for sign
that the worlds banking capital Is CON
er4s 60 tiaars al
b'litics ou.'.dc OF the British Empire
Saturdays local bank statement WAS
encouraging. The reserve deficit has con-
tracted two-thirds from tho largest total.
which was reached IN the middle OF Au-
gust. and cash II flowing to this centre
IN considerable volume.
Notice was attracted by tho Treasury>s
monthly statement because Of the te.ti-
inony which IL gave 10 the country's abil-
itv 20 part with gold for TIE purpose OF
dlsch1rEinE international obligations. the
aggregate OF gold In circulation now being
materially higher than Il was two years
ago. the new product OF the mines having
more than replaced the large quantity
which has been exported. Emergency
currency circulation outstanding has
reached a total Of 1925. 600 600. but II
seems 70 be having the result 81 turning
reserve money Into the banks, which is
desirable.
An engagement OF $4,000 gold was
made for shipment 10 Canada and an
nouncement was made by the gold fund
committee that Il was ready to sell cable
transfers on London. II the London
money market adopts the right attitude
the gold fund should not be largely nor
rapidly drawn upon and indeed it, very
creation should be- enough 20 promote a
more workable condition in foreign eN-
change.
10
market has not altogether adjusted Itself
20 the rev clement represented by the
gold fund but the committee is feeling
It's way carefully and no doubt before
long the dealings In exchange will become
more extensive. After little further re-
cess!on yesterday sterling bills hardened
to 4.9J Tor demand and 800 for cables
German exchange continued distinctly
Weak
That trading In securities IS bound to
lie done IN Irregular II not In organ zed
markets Is coming 20 be more md more
understood in banking circles. whore tho
problem - stock Exchange rCcTening s
the persistent subject OF conversations
but 50 far there is nothing to show that
business IN securities will IN the near
future 20 FAR outside the limits Of per-
United dealings. The transactions IN The
so-ca!ied gutter market" I'm New street
are worthless as a measure OF prices, md
more Importance attaches 20 the cash
business which IL done In an investment
way through the authorized channels
The recognition which the London stock
Exchange has given 20 the closing prices
for American stocks on July 30 Is in
terpreted as in "A way an expression OF
iudgmen, that the price level IN question
was certainly low enough for real values
Tho short term note market IL becoming
more active and broader, and the recover
ing movement In the new three year bonds
Of New York city r. manifestation OF
real improvement IN the investment situa,
ton The new notes Of the New Yorl
Central Railroad are being offered on a
3i9 per cent basis.
Wheat and other agricultural com
modit'es displayed no renewed trend
/ toward strength. Tho situation In cottor
threatens to become oven more politIc1
than u Is economic. and no particular
h6lng Is felt for the determined insistenc,
In certain quarters In Washington Gov
eminent experiments designed 10 shif
: the loss with which the South IA threat
ened In It's principal staple,
Some uneasiness has been induced ny
/ tho recent actions OF the Treasury De.
partment because q good deal OF politica
backing can be found for III advised
schemes and Il II not reassuring 70 hav,
| tho chic, financial officer OF the Govern
ment commit himself to policies which
I have little but their novelty 10 commend
/ them The Urea s,iry's share IN the Ten
nessee loan operation Is what especinll,
| inspires the foregoing comment. and thi,
| transaction, II might he added, IL hardly
| likely TO add 10 tho prestige OF the Fed
| eral Reserve Board. OF which the Score
tary OF the Treasury IL so powerful and
important n member
The meetings Of the reserve bank a.
rectors, which are now beginning. Prov
that organization OF the new system Il
| going 10 continue rapidly, The choic,
made of governor for the New Yorl
reserve bank meets with general approval