The Cairo bulletin., 1914-10-12
new YORK SAVED
THE nation FROM
A SERIOUS PANIC
Bankers Of City Faced Financial
Crisis With Ability, Cour-
age and unselfshness
FORMATION OF $i00,000,000
GOLD POOL AFFORDS RELIEF
Money Malkot Working Iato Easier
position-Better Demand for
Commercial Paper.

New York. Oct. l1.---Eacl week
marks further Improvement in tho
liz aneial situation The position Of
foreign exchange IL daily growing
more favorable ald foreign transac-
tions, though still seriously impedCi
arc being con1ucstd with increasing
facility. Tho formation o; the
500 100000 gold pool has afforded
material relief, and is Offering a
conspicuous eXarI le of wha: can
, be accomplished lv intelligent. un-
selfish cooperation. This war has
hrou ght many surprises; also some
highly gratifying incidents. Among
these must be included the work ac-
complished by New York bankers to-
ward meeting the shock Of war,
thus preventing disaster and success
fully adjusting our commercial al
fairs to the now situation. When
the facts become fully known as to
| the ability, courage and unseltish
ness with which the New York bank
ers faced the most serious financial
crisis IN our history there will be
| less prejudice throughout the coun-
try, and particularly in political cir
cles, against New York as flnan-
cial center. There are serious prob
| lens brought on by the war yet to
| be solved, but the worst part of the
crisis has been safely passed. New
York has certainly saved the nation
from disastrous panic.
! The money market is also work
| ing into a much easier position.
| Good borrowers have less difficulty
in finding accommodation and rates
| are somewhat easier. There is also
n better demand for commercial pa
per which demonstrates improving
| conditions in the credit market.
| Much Of the present depression in
| business Is duo TO contraction OF
| credit arising from the war. Need
less to say any expansion OF credit
| upon a sound basls will materially
help the business situation. The as
sistance of the Government and the
operation of the Aldrich-Ereeland
emergency bill, which added nearly
: 1850, 100000 to our circulation,
have been important factors in
monetary relief. The financial dis
trict Is now looking toward eagerly
tc the opening Of the Federal Re-
serve Banks. Reliable adviees from
Washington say that the twelve
hanks will he ready to open on No
vember 1st Is net earlier. This Is
sooner than anticipated, the first OF
December being previously named
| In any event the inauguration OF
the new system is not far distant
and the hope Is not unreasonable
that the Stock Exchange will be
opened about the same time as the
inauguration of the new banking
| sytem. which by lowering the re-
| serve limit will permit an expan-
| sion of about another $780, 900 ,0OC
in bank currency. OF course the
| danger of food of foreign selling
OF American securities is still tht
chief hindrance to opening the New
| York Exchange. Earnest efforts
are being made to open at London
the latest proposal in this direction
being for the British government tC
guarantee 25 per cent of outstand
ing Stock Exchange loans when tht
moratorium expires. II this plar
is adopted the British banks viii
undoubtedly be willing to extend
their Stock Exchange loans. 1t Il
the loan situation and not the specu
lative position which IS the mair
cause of anxiety.
The war continues the dominat
ing factor in business affairs Pres
| rrt Indications arc for len 9Th