The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-22
FINANCIAL NEWS
AND COMMENT
Aspects Of tho Plan for a $780,
100000 Gold Pool to
Aid Conditions.
FOREIGN EXCHANGE FIRM
City Loan Subscription May
stimulate the Investment
Business.
FOREIGN EXCHANGE FIRM

Deprived OF the ordinary facilities for
r.-.ct'ne Developments basyinS on values,
wal street &. not nowadays a place where
opinion or tie COURSE 81 events Ia readily
.scertalned or measured At tho esm,
time It was manifest at the beginning OF
TIC new week us; II views expressed iu
various quarters were trustworthy guido
That feeling was Professionally hopeful Of
gradual solution OF the financial aud COM
iucrclal problems which the war has ere
sted here.
II seemed TO he believed that progress
lad been distinctly made in important d.
rcytions IN preparing some OF the neces-
strv preiminaries to resumption OF
banking and business activities on more
extended scale than AZ present. although
70 must I've conceded that f'nsuCl al st'i-
tudes are very prudeutly restricted by the
Imperative Importance OF regarding the
contingencies Of tho war as adverse To- any
PROJECTS Of a. itr reaching nature. There
are even tuoso Who doubt tho ACCESSIBILITY
10, committing tho country very deeply 20
"rcpcr ,tiou with the achefne. Of British
nusnco when their ultimate success Is 30
dependent on the fortunes Of tho Euro
prtu contest.
S.uj The majority view IN that prsc-
ticdlly we can do no better than holp TO
resiors ths war rscked economic ma
,biuery TO something like working order
and there - general indorsefnont OF tho
plan which the Federal Reserve Board
has approved for a 800. 100000 eold pool
to facilitate tho operations OF the interna-
tional money market. The Federal Re-
serve Boards support OF this plan was
one Of tho development. over the week
end which had a distinct relation TO values,
and thero was " good deal OF confidence
That tho necessary underwriting would
vA lao, hut ~ 81.
would Ice eucccssful IN bringing about
more normal conditions IN sterling eN-
c.it'c'. such conditions. II is thought,
are indispensable 20 any serious endcavor
tu reopen the stock marke. and promote
a recovery in general business.
Banking interests were engaged In .
d DISCUSSION uf tho "details OF tho 500 onO. o.
600 gold operation, but not much more
became known than that subscription
would be- asked from tho banks IN tho
larger cities md toNus of tho couutry a
request which tho influence Of the Fed
or,u Reserve Board should 60 far TO make
effective The presumption is that Il third
or more Of the total amount Of gold will
h' furnished IN this city. Tho important
thing i-. however 70 induce in ~. in
terror banding community disposl-
ton to assist undertakings designed 10
make - fun employment o. banking re-
sources for the revival of the credit mar
bets.
National barl, returns that are being
made under the Comrtrol'ers latest call
show that even among the local banks
too tight q grasp IL helug held on funds.
This does not mean that the banks should
los expected TO lower reserves by paying
out reserve money. but that they could
afford to make a reduction IN reserve ra-
tos by adopting and pursuing more
liberal policy IN the grant Of credit. What
,sIr - sn-Iny fs
much an increased circulation OF currency
or lower interest rates az less reluctant
lending
The Interstate Commerce Commissions
relatively quick decision to reopen the
Eastern rate case was regarded with sat
isfactiou. not very much diminished hv
tho commissions incomprehensible deter
muatlon to allow a month to elapse be
fore beginning hearings IN the rropencd
proceedings, The idea seems 10 he that
tho emergency situation viii compel the
commission to afford relief to the rail
roads ana few weeks more or less VIII
not De particularly detrimental To the
railroad position # eventual relief is as
sIred.
Perhaps because the war news was 50
| iudecsive there was a comparatively linn
tied price movement in the cereal markets
Sterling exchange started downward IN
the carly dealings. but rallied promptly
| and sharply, and demand sterling held
firmly around -.e5, with cables cent
( higher.
All the portcnts o' mo New Yori, city
/ loan subscription wero of an increasingly
/ gratifying sort. Tho books close to-day
and IL ~ expected that the subscription
will supply a considerable stimulus 70
| the business which dealers IN investment
| securities have now get out to do on a
| less restricted scale.