The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-08
RESENTS MYSTERY IN
PATSH CONFERENCES
"Financial Chronicle" Thinks
Little Has Been Accom-
plished.
PROBLEM FIGHTING ITSELF

While sterling exchange rates have
SnoWn marked Improvement over the
prohibtire prices y. evailinr some time
aso' the Commercial and F,udnoint
'hron'cle points out that nothing def
nlte mas resulted from the visit Of the
british Treasury representatives. sir
H"rP" Pal II md ". - ackstt TO
washington, The magazlne is inclined
70 crltlclSe the reports emanating from
washington as completely AT variance
WITH any thorough understanding of the
exchange situation and intimates that
they represent rather the views of news
paper correspondents than those of per-
sons well acquainted With International
exchange
"It Is evident" says the Chronicle.
after making full allowance for delin-
quencies not unnatural in the reports of
such correspondents. that there has been
no definite result OF the visit of the Brit
igh representatives, to confer with our
Government officials. The latest report
Is that the situation is found to have 80
greatly improved that no arbitrary action
Is necessary and that tho foreign
exchange problem a. whole will lie
permitted to work out its own salvation.
This. We are glad to say. II is doing In
a practical way, and there Is no need
whatever of outside intervention. In
stead Of London bankers demanding gold
IN payment Of Indebtedness, w arc in
formed that In sufficient number ~
INSTANCES 20 he regarded as representa-
tive Of the entire situation London banks
are asking New York banks 10 refrain
from paying of thei~ balances in London
the English money situation has be
come one Of such abundance that there
Is no other use TO which the funds so
released can he put.
This certainly does not Suggestion
Il is an entirely new development--that
there is an Unsuitable demand for Ameri-
can gold In London that must DO salts.
lied under tho penalty o. our own banks
being considered defaulters.
The tendency in foreign exchange CIR
clos il To- take a broade Ming view OF IN"
entire situation. II Is now rccoEnized
more clearly than ever before that the
European var must he considered ar
influence which will he with We for
long period how long no one viii care
10 hazard DEFINITE estimate hut V
d. an influence now that tn" first shock
- over. that may he looked ~ as
routine factor in general internauonh'
finance Tho Engl sh moratorium has
ouded So far AS financial transactions
are concerned. aud relief from pa nentN
NAV nov only he claimed by merchants
, who's. temporary cmbarrassmcrts can. h'
proved - have resulted Directly from
foreign defaults due 10 the var. The
end If tho moratorium had be"n thor
oughlv prepared for IN London. and inc
apnearauco Of the formal date passed
Nithou, notice. not fow of London
banking institutions having Decided IN
Idyauc. no longer to tax" advantage or
its provisions The ending of the mora
forum will release balances due To TINS
side which have been held M.
The recent hiSh rates OF exchange ~
. this market to quote q conversation Win
one of tho most widely known sterling
. exchange authorities at this centre, was
not due to any particular urgency OF
. American merchants 10 effect remittance
II WAS due 10 the fact that New YORK
has for the time being become the clear
ing house Of the world for the settIe'
men. of international balances due from
ono European Continental centre l" inc
other London also has been coming to
W for remittance to France or To h"l-
laud or Italy, and Holland Is now doing
tho same thing so that the piNota' POM
has now swung around to New York.
and will remain so al long as the presen,
disturbance is occupying the nations OF
Europe. ,,-
'The shipments OF gold To Ottawa TINS
week have included s452.Il2 coin and
Sl26,3ld bars, a total of so19,o2'. one
cause of the iirmer exchange rates has
been the restricting influence on snip
nents OF merchandise and IN turn on the
supplv ~ bills resulting from the clos
ING Of the North Sea and the Increased
danger Of navigation, while expansion
90 tho British list Of contraband. includ-
ing copper and illuminating oils, mas mao
a ain,ilar effect.