The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-28
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Goes to High
er Levels Despite Grain
Bill Offerings.
URGENT INQUIRY TO REMIT
Bank Of England's Weekly
Statement Gratifying-Posi-
ton Strengthened.
URGENT INQUIRY TO REMIT

Another vsofcn< r4se IN wheat provided
a sensational feature In the financial dis
trtct yesterday. Tho high figures werc
touched on burst OF speculative buying
AZ Tho opening Thereafter quotations
dropped back rather sharply. There was
disposition IN some quarters to re-
gard this movement In wheat as
greatly overdone, Undoubtedly spco-
ulation II at the moment running riot In
tho wheat market, principally. II seems, as
q result OF well founded differences that
the European war IL likely TO DO a longer
one than was at first thought In any
movement OF the kind violent reactions
are TO be expected. But II II not safe to
say that tina highest prices have even
yet been seen. The Fundamental posi-
ton OF wheat. Il must bo remembered. is
enormously strong. Foreign trade author
tiles predict that II the war lasts twelve
weeks II will so Interfere with European
agriculture that famine will probably re
suit next year. Moreover, In this conncc-
tion there Ia no certainty that our own
country, which this scaeon raised record
wheat crop will repeat the performance
In 1915.
II tho grain market h responding d.
rectly TO the Influences OF Developments
In che theatre of war Il hardly eeems
clear why the renewed strength Of the
exchange market should Be ascribed oon-
stantiy 70 the German sucocesos Tho war
news yesterday was somewhat mixed. but
the trend OF exchange was unqual,fiodly
upward. In spite OF an increased supply
OF grain hlls rates rose to new high
levels moro urgent inquiry to rcrnt
because OF the near approach OF the end
y the month might at least have affected
nj nt,t
mains that. while the exchange situation
promises slowly 90 right Itself through
heavier shipments OF commodities, the
progress made so far has not been rapid
ana the demand has been sufficient TO
overwhelm the supply Of grain bills
The weekly statement OF the Rank Of
England was an extremely interesting
document Under all the circumstances
the showing is entirely gratifying Com
PARSONS with conditions In normal times
are worthless, but Il ia sufficient 20 say
that tho bank has strengthened rs rosl.
ton materially IN tho last week. The
immediate results OF the emergency meas-
ures taken by the authorities are most
reassur.ng The gain In gold OF s27.-
100000 IN the salient feature OF
the exhibit Presumably this includes
the gold collected IN the new depos!taries
IN Canada and South Africa. now counted
as gold actually IN the vaults OF the
naUN. IN spite OF the increase IN reserves
Of over sa5.6o0 600. the ratio OF reserve
20 liabilities improved only from I5% per
cent. to l71s per cent This was due 20 the
fact that the bank is stlll following It's
policy OF extending accommodation freely
where required.
The receiversh.p OF the international
Pump concern did not excite surnrtse
The company has been In financial an
fculties for some time and the stats
OF CONSTRUCTED credit foreshadowed such
action. Nevertheless, IN the present crlsl.
tho incident could hardly help creating
an unfavorable Impression out o.: all
proportion to Ia significance
WASHINGTON dispatches brought litt',
rev 20 stimulate serious financial dis
cuss'on. Apparently progress Is being
made toward a threshing out OF methods
10 meet mo real needs OF tho situation.
Confidence IN the ability OF Washington
to realize the enormously critical prob
lens presented. however. IL not lil,ely 20
he helped by suggestions along the line
OF that offered nv Congressman Vollmer
OF Iowa, who states that he believes
moratorium In the country advisable
Some interest was aroused nv London
despatch stating that the depreciation IN
3ST representative securities dealt IN on
the London Stock Exchange between
July 20 and 80 amounted to ssis.ooo 600