The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-30
FINANCIAL NEWS
AND COMMENT
Ability of Banks TO Strengthen
Themselves Reflects Easier
Situation.
NEW INTEREST IN RATES
Discussion Of Need Of Relief for
Railroads Under Conditions
Due TO War.

There was practically no news Of
d..ct financial bearing Yesterday except
that contained in the various routine
announcements at the end of the week.
The report OF the victory OF the British
feet Ia the North Sea, while its signih-
canoe from a naval point of view might
have been slight. nevertheless possessed
a distinct financial import which is not
10 be dlsrcgarded The state of tine none
tary situation here after all depends
largely upon conditions In the London
market. which In turn must be Influenced
strongly by developments in the theatre
o. war. Improvement even If only in
sentiment in the London discount market
WAL ultimately find expression every
where.
The foreign exchange market continued
firm, with rates around the top prices OF
the recent rise. The question Of deal
ing with the New York city maturities
and other American obligations which
1all due In London within the near future
Is still being discussed by the bankers
directly interested, but no plan of settle
ment has yet been announced. although
reports continue that arrangements have
bp.n decided on The Guilds Company
reduced the quarterly dividend on the
common stock from 2il per cent. TO q
per cent. -
The weekly bank statement, showing
further Improvement in the banking po-
sition at this centre. was rtassurlns
exhibit Reserves were increased 10y IS
S6g.OUO. reducing the deficit 10y S33,HJE-
600 This was accomplished ny an III
crease i'm cash of SG,jS6,ooo and a con-
fraction in the loan item of $l,359.ouo. ot
ths Increase i'm cash SJ.1lt,uuO was IN
.peci, This showing is highly s'ghIh-
can't. indicating as 1t does an inflow or
currency from outside points Inc "hll'N
Of I'm, banks to strengthen themselves
obviously reflects IN easier monetary
condition throughout the country.
Irrlpub.,dlv this relaxation IN the
,,oretarv situation results chiefly from
"a sackeulug Of general business me
weekly trade reviews TESTIFY 10 'uJuSl-
mcuts that are daily being made IN the
business world To- a war basis Inc ten
,lcncy Is for bus.n IS TO proceed very
,.1ifinusly. dlSsegirdlug futur" wants ana
,,vfpr attention solely 20 imm"diht" re-
,u'~cmtnts The weekly bank cA'hins''
IRE eloquent testimony - this troWinr
l,s.ttuUy to make commitments IN lh'
&C. ~ uncertainties produced by the
var. Total bank cleltiugs Tor ~" Wnult
,.,Irtry show a loss Of 25.5 per cent. the
falling off ia New York city alone being
AL per cent.
wa. comment Is being attracted 10y
tie possibilities of a reupouing "F 'he
Interstate commerce commission or me
Eastern freight rate case decided snort
time ago for an adjustment or IN" dc
.,sion in the Nrht Of tine change OF the
r.slti,u of the railroads brought about
H.. the war That such action would be
entirely reasonable is plain. Il was ad'
united by the commit ssion itself thai the
Eastern roads had proved thor cpntth
ton. namely. that the return for services
,,ndcr,d was not sufficient To- make ends
meet and make 4 decent return ON cap
ftHl invested The commission In grant