The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-03
Returning to the Normal.

business is once more finding itself
on firm ground. When the very foun-
dations Of finance and commerce
rocked four months ago in the economic
CONFUSION attending the outbreak VI
the war In Europe II was difficult To
believe that Il sure footing would be
recovered in anything like the compar-
ntively brief interval which has since
elapsed The banking and business
community. however. kept its head de-
spite the difficulty of keeping its feet.
and rs result almost normal condi-
tlons have been restored.
New York city is always the centre
of any financial disturbance that visits
the United States. Here the country's
primary markets for money, securities
and foreign exchange are maintained
and here the countrys commercial bal
ances are ultimately settled. Testimony
Of the country's return 10 the normal
Ia In 10 respect more convincing than
In the announcement that the New
York Clearing House banking institu-
tions have retired all the loan certli-
Gates which began to issue in August
To enable members 10 effect temporary
arrangements of accounts among them
selves without using reserve money.
Resort to the issuance of clearing
house certificates was an emergency
measure of the irst class sanctioned ~
experience In grave crises and the
prOmptness with which II was made
undoubtedly helped 10 render the crisis
last August less acute. On previous
occasions in our financial history en-
poymcnt ~ measures Of the sort was
almost invariably too tardy and timid.
ON this occasion our bankers acted
with resolution and celebrity. and in
consequence the banking position WAS
almost overprcpared for trouble, vir-
tue and not fault in thar violent
panic was prevented precisely because
ii was 81 adequately anticipated.
II Is interesting to note that while
the latest issue Of clearing house cer
titicatcs in New York was out Staudiu-
for Il shorter period than IN the 1907
panic crisis or in l>.G, much the largest
total was issued this year. The previous
record was made seven years ago. but
was exceeded in the last few months
by S23ii35.Wo and the maximum
amount recently outstanding at any
one time WAS $50. 1G5.OU greater than
in l"o1|nN
There IL, in the aggregate Of clearing
house loan certificates taken ont and
in the fact that they We're all retired
within seventeen weeks from the first
issue To- tho last cancellation. striking
proof Of the extent to which the tinan-
cinl situation has been adjusted 10 the
circumstances Of the European war.
New York example IN August was
quickly followed at other banking cen
Tres, hut the Treasury reports now that
1T every point clearing house certifi-
Gates have been either paid off or called
for redemption. According TO all prec-
edent this marks the recovery of inan-
cial equilibrium. The fact that emer-
gency currency is in process of rapid
retirement, more than one-third of 1t
having been already withdrawn. has
cOrrobOrative significance.
The banking position to-day supple
ments other evidence, The optimistic
bearing of which has been summed
M in the progress toward n complete
resumption of open eallngs in the
organized securities market. and in
creases the encouragement already Of
fered for II revival of general business
confidence