The sun., 1914-08-20
FINANCIAL NEWS
AND COMMENT
Sharp Rise in Wheat Attributed
to Progress Made to Re-
open Trade.
SHIP PURCHASE PROBLEM
The Administration May Have
Found Way to Avoid vio-
lating Neutrality.
SHIP PURCHASE PROBLEM

Another sharp rise in wheat yesterday
was attributed TO the progress made
toward the restoration Of the foreign
trade movement 1t may also have been
caused to some extent by general con-
siderationb in regard to the food problem
In Europe, which Is bound TO become
increasingly prominent The strength In
wheat was not reflected in greater ease In
the foreign exchange market. As a matter
Of fact exchange rates rose brisky to 5.ol
for demand. as compared with a low on
Tuesday OF 496 THIS reaction In exchange
Is explainable on the ground that the
amount OF wheat going out OF the country
has been overestimated. At any rate the
demand 30 far has been suffice nj to much
more than absorb all the grain bills
offered. But the fluctuations in exchange
rates Just now probably represent the
operations OF considerable short In
terest" I'm that market more than any
other influence. Whatever the immediate
movements OF exchange rates, the fact
that business Is being done AZ all makes
II obvious that the situation has distinctly
bettered.
Progress IN the solution OF tho prob
lem OF taking care OF our foreign trade
was displayed IN the despatche' from
Washington announcing that at a confer
enoe between tho President and leaders
OF the Senate and House 4 had been
decided 10 purchase ships and insure war
risks on American cargoes and bottons
II Ia taken for granted that tho ships
purchased will include those Of the Ham
burg American Line now lying 'al" In
American Ports II this eurmise Ia cor
rect the Administration must have found
some way OF s1uaring the transaction
with It's own IDEAS OF the true spirit ot
neutrali'y rs we'll as way to overcome
all possible objections OF Great Britain
to such n transfer II Is Husrested that
an advantage of a sale Ol this Kind would
be that the money In payment would
probably remain IN this country s'nc-
no means orfor AZ present ~ transferring
e 10 the other side
In the meantime me Question OF meet
ing tho obligations o: New York city 20
Europe on maturing obligations is st!ll
being discussed as well as tho large :
question % dealing with EXCHANGE cordi-
lions In general SO far no definite cor
cluslons have been arrived at or e'ther
point Another conference between Comp
troller PrenderRast and the bankers who
have given tho subject their attention was
held yesterday. No idea even OF tie
methods d'rcussed has been made known
After meeting OF leading foreign cS-
change brokers II was also announced
that no measures had been decided uron.
There IL no change IN the situation az
regards tho Sock Exchange, although
views FOR and against reo,eni1g continue
TO he aired. These were given u fllip
Yesterday ny the news that the San Fran
cisco exchange had resumed trading IN a
limited way II ls obvious however, that
lie whole question of resumption ~
business rests with tho baulcs, ana that
they alone Will decide wheG the situation
jus.laes a step. In regard 10 the none
tRry situation II IL interesting 70 note that
tho present shutdown on the extension
OF credit is weighing heavily upon all
commercial activities There is prac-
tical'y no market IN commercial paper
and general business Is beginning 20 feel
the erect Tho demand for emergency
currency has subsidized applications being
so small that the National Currency As
sociat'on viii hencetorth meet only twice
| a week