The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-11
FINANCIAL NEWS
AND COMMENT
Favorable Effect Of War Hap
pcnings Are Witnessed in
Wall Street.
EASY MONEY PROSPECT

War Developments directly Influenced
financial sentiment and events yesterday.
The elimination OF two German sea raid
ers and the tenor OF advices about land
operations could hardly fail or a favor
able reflection in community where the
preponderance of sympathetic conviction
is on the side OF tho Allies. Quito aside
from that the news about the Emden and
Koenlgsberg tended TO make the financial
and commercial situation somewhat less
difficult.
Cable dispatches reported n prompt fall
in marine insurance rates in London and
to the extent that allied control OF tho
seas liz asserted 1t may be expected that
insurance handicaps on ocean borne COM
merce will he reduced. The further agree
ments Oh the part OF Great Britain as
to interference with neutral shipping
are also propitious for our prospects of
business recovery. which depend so much
on the assistance rendered by our foreign
trade in changing an International debit
balance to "A credit balance. If (and as)
the safety of the seas becomes assured
the greater certainty OF International COM
municatious is bound to work better
ment in the International exchanges and
rlis was one factor IN causing sterling
bills to ease OF again yesterday.
Incidentally II might be noted that
German exchange fell to a new low price
marks being quoted around S7a. both for
demand and cables. 1t may be that the
phenomenal weakness OF German ex-
change is the result OF irnportations OF our
goods and commodities through neutral
countries, while German exports are pro-
viding diminished Offsets At the same
time there is one Implication OF the col
lapse of the reichsnarks which should not
be overlooked. This is Its possible meas
ure OF the economic position OF Germany
In the war and the expression OF financial
judgment as to the German prospect in
the war itself
Demand sterling sold around 4e0K
and lower. with cables half cent higher.
Apart from the influences already re-
ferrcd TO there is no doubt that reaction
I'm sterling remittance was promoted Ivy
the completion of another stage of the
New York city loan operations The
call for the eighth instalment of the
subscriptions to the loan. involving al
most $4,000, 600. has sent about 10000
GOO gold to Canada, making the total
transfers to Ottawa since the outbreak
Of the war more than $4,000, 900 and
bringing tho country's aggregate exports
FOR the Jar up 10 not far from
s2aO. 900, OOG
" solvency aud good faith which could
hardly fail to produce a helpful impress
sion in London, where so many Amer-
can obligations are held. and II is not
surprising that the further purchases of
exchange Oh the New York city loan ac-
count have been accomplished without
any very sharp rally in tho level OF the
exchange market. IL Is reasonable 10
| suppose that with varying turns sterling
bills will move more or less persistently
| downward II the fortunes OF war are not
| conspicuously averse to the Allies. Also
| il Is probably unnecessary to assume
| that the P.lish-McAdoo negotiations wiz
| have to end I'm the adoption OF any very
| experimental expedents to put intcrna-
| tional financial dealings on a sur,
| footing
The country's foreign trade outlook in
| duces optimism i'm this respect. SO does
I The approaching establishment OF the
| Federal reserve banks. Calculations as
| TO the large release u reserves 10 result
| rom the Inauguration OF the new bank
| ing system may he moro or less con-
| founded ny the actual transfers OF cash
| but In any case tho new financial fac H.
| ties will make II possible to adjust cred
| It's to the necessities of foreign gold pay
| ments practically as though none OF the
| gold exports Of the year so far had been
| made.
| Anticlpatlons Of increasing monetary
| case on account of The new banking sys-
|
| various directions. Rumors OF loans ne
| gotiated by Wall Street both here and
| i'm London nj rates OF interest below 0
| ucr cent were in circulation and it
| seemed evident that the owners or Gus
| ,odlans OF funds were feeling a growing
| compulsion TO find employment for their
| money. Stocks In the irregular street
| market displayed strength and invest
| n,.nt securities were actively strong. This
| was particularly true Of short time obli-
| cations headed by thH New York city
| notes which approximated AZ per cent
| basis.
Progress was made in completing the
| agreements on which the reope ming OF the
| cotton exchanges depends 1he grain
| markets were all reactionary because of
| too much speculative buying recently.
Last weeks port figures for New York
| showed an export increase OF s434l,Oou
| over the figures for the correspondent
week last year Intelligence about do
nestle trade and industry was less graft
| flying.
| ported a decrease of 32G,57O tons IN Tor
| ward business on It's books at the enc
OF last month TO the lowest total of un-
filed tonnage in three and half years
and apparently only a sharp contraction
I'm mill operations prevented the cur
tailment OF untitled orders from beins
| grepter The idle freight car report as
OF November / disclosed an Increase OF
1914 to n net surplus Of 170,0s6, the
largest amount OF sidetracked equipment
since mid August and the largest tota
for the season since 1907, Tho chief sur
plus in in coal cars which shows how
extensive has been the reduction or In
dustrtal enterprise.
Here is a situation which In going h
talk. time 10 change. However, II TN
present prospects of Mo money marke
mateatelize In a few weeks financial oon
ditlons will provide impulses to bushes
| recovery.