The sun., 1914-09-12
FINANCIAL NEWS
AND COMMENT
Factors Making for Further
Recession In Foreign
Exchange.
BANK CLEARINGS FALL
Grain Markets Feverish-Con-
gress and the Plight Of
the Railroads.
BANK CLEARINGS FALL

About as, Interesting n piece OF infor-
Nation as was impaired TO tho financial
community yesterday was tho measure of
general business contraction furnished by
tho statistics OF bank clcarngs. Accord
ing 20 the compilations OF tho commercial
agencies clearnys for tho week show II
decline OF about 10 per cent. in compar.
sion with the corresponding week In the
last two years previous. The showing is
affected by the Labor Day suspension, but
the untowsr'l consequences Of the Euro
pean war arc exhibited in these figures.
which suggest that other data hy which
economic activity is gaugcd will tend 10
the same conclusion.
Tho war advices from Europe CON
tained nothing decisive enough to enable
Wall street to form IN opinion about tho
percentage cf rcasonableness that might
be represented in the initiation OF mo
diatory efforts Tor peace, but the terrific
nature of the lighting suggested that such
warfare could not be- conducted for a
prolonged period and leave the hclliger-
orts anything to fight with or for. An
nourccrent that the Bank OF France had
successfully removed all It's gold and all
ver 70 a designated place only confirmed
runror5 OF n week ago
There was not much evidence that bond
aAlers had found themselves able TO do
fuUCu publElscb uIlusT lit limited Cl
restrictions authorized on Thursday. For
efgn exchange was but moderately dealt
m Although an encouraging circumstance
was the Increased availability of exchange
90 other centres than London. The ap-
pearance OF more cotton bills was reported
and the further weakening OF London dts
counts, which we're quoted as low as ~
per cent. may have been additional reason
FOR n waiting disposition on the part OF
prospective purchasers of remittance
Tho modification OF the city loan agree
fnent In no way affected the terms OF
the present financing and related only 10
the future borrowing policy OF the city.
which. according to the contract. II still
4 commitment To careful economy. Early
In the day II became known that sub
scriptons for the notes had been completed
and the operation has obtained practically
the unanimous support OF the local ba nix
ing community.
II renders supply OF gold forthwith
available for tho International exchanges
and some transfers to Canada IN moderate
amounts are likely TO get under way. The
pian for a $3.50. 900. 900 gold pool, OF which
the city underwriting Is r part, may not
no pressed at the moment. for he pro
Vision to take care o' the city's obliHa-
tions maturing abroad may permit fur
thor consideration of the larger project
by cffecting An early further relaxation
IN StcrInR tNtlltTke. IN thS KNOWN
snOvenents Of money tho local banks ap-
pear to have gained $4,000. 900 cash dur
Ing the week and to-day's statement may
shov that the reduction OF the reserve
deficiency has been resumed.
The cereal markets huctuated cevershly
aftnr the fashion Of speculative markets,
IN which there has been an excess OF spec
uiAeive activity. After sharp rally fol-
loving a decline wheat. corn and oats
arain reacted toward tho close.
President wilson's letter commanding
shs financial conditions OF the railroads
20 public regard was favorably noted. al
thourh definite suggestions for concrete
action have not yet resulted from the
White House conference on Wednesday.
The fact that Congress found II possible
90 propose II war TAX increase OF per
cent In freight rates throughout the coun-
try would seem, however. 10 indicate that
1hs law making power sees no insur-
snountable obstacle in the way of reliev-
Inn the railroads from pressure through
rots advances