The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-21
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Rclaxcs
Rather Sharply ndcr
Various influences.
GOLD EXPORT PROBLEMS

Foreign exchange developments again
attracted most attention in the Hnarcla.
community yesterday The direct uego-
tdtions which are being pat1 icipatcd In AZ
Washington by. official representatives ~
British finance and the evidence furnished
lately Of the expanding volume OF export
trade buying hero have prepared wall
street for some signs of renewed relaxa-
tion In sterling remittance and naturally
the course Of quotations during the day
suggested the probability that various in
luences were at last working favorahly.
The recession which was first mani
tested in symptoms OF casiupss toward tho
end II last week and became manifest on
Monday was quite pronounced There was
a steady fall from lower opening until
NJ the close demand sterling turned
sharply downward to 81 u. with cables
barely half cent higher
There was said go be "a relatively large
supply Of cable transfers IN tn" market
oud Indications were afforded Of a con-
.'dprIp,' drawing - iong bills against
which cables were being sold. Canadian
banks appearing to figure largely IN these
transactions differences from the move
m"ut Of quotations were qualified by
prudent recollection OF prev ous occasions
wnou cNcharge has reacted In the las,
frN weeks only to recover again. hut there
seemed to be more reason for thinking
, that a new low level might be reached
before another distinct upturn.
Among the causes for the weakening ~
exchange was the assumed probability
that arrangements had been largely COM
pleted go meet tho conditions which will
exist after the expiration OF the British
moratorium next month The susta ined
ease OF discounts In London has also been
n factor but more than anything else
has hcen IN" help derived from the in
creas.ng supply OF export bills. In foreign
exchange circles sentiment was also aided
by Sir George Paish's report that our
present debit balance abroad was perhaps
no, more than S250.O0o.0OO, which liz
much less than the average amount mem
toned In banking discussions lately.
The call for the payment of the NTH
instalment on the New York city loan.
HEgroEatinE about S5,3S3.O0o. viii re-
suit IN more gold going to Canada. but
the principal subject OF interest relat-
ing TO gold exports is now provided
10y the International conversations at
Washington. The disposition credited 10
Great Britain to exact e substantial
settlement OF our Indebtedness IN gold
over and above tho provision uf gold en-
ports already arranged IL decidedly un-
welcome here.
It is otherwise apparently contradictory
Of certain facts OF the London money
market The Bank Of England Is adding
largely TO its gold holdings every week
Discounts are real easy IN London. and
no matter what the collective attitude
of the British banking community may be
individual British bankers have begun
to exhibit a preference for American bills
to the extent of rejecting proffcrs of
payment Of maturing obligations and pro-
posing continuation ~ Indebtedness.
Moreover they have steadily increased
the amount of their acceptauces of Ameri-
can bills
50 greatly has the war changed the
currents Of thought that II was hard To
realize what IL involved IN the suit To dis
solve the United States Steel Corporation,
final argument In which was begun IN the
Federal Court Sutic" II tu say that the
financial district Is persuaded that a good
deal OF the political programme Of the
last few years will undergo revision amid
the circumstances which tn" war mas
created. At the same time the proceed
inRs IN the rcopened railroad rate case
did not Squar" altogether with eXpecfa-
tons as 20 the probable course Of imme-
diate political events. Certain discourage
ing signs appeared that the Interstate
Commerce Commission was still cropping
about In the darkness Of the political past
before the war revealed the essential basis
% business enterprise IN the Inducements
offered TO tho Investment of capital.
Reaction occurred In wheat on heavy
farm sales and speculative liquidation. hut
good export buying was reported. Tho
statement Of merchandls" exports AZ the
port Of New York for last week showed
that the aggre gate was about the same as
the corresponding week last year. but the
outward movement for the month ~ far
has made a substantial gain.
Investment dealers report n fairly salts
60, ,t.,tb - h,tA
strlctions which are imposed. hut only
curiosity was displayed over the statement
by George W. Perkins favoring the estab-
lishment OF governmental control over the
Stock Exchange as ar incident TO the re-
opening Of the securities market. TIL.
suggestion might however, stimulate wall
street effort TO find way 10 resume regu-
lar dealings.