The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-11-02
||CIDDER MARKET
4 DISTINCT TURN
FOR THE BETTER
American Values Based on
Sound Foundations Garry
Large Degree of Economic
i Immunity

New York Nov. 1.-THE Sun to-
morrow. In its review Of the flnancia
situation. will say:
Now that European war has beer
for three months fact 10 be reCk-
oned with by banking and business
interests and has compelled resolute
effort to adjust values TO the tremen-
aous alteration Of economic conditions
effected by the way il becomes proper
10 take account OF the situation and
ask how commerce and finance stand
In the changed circumstances wit
which the world has 10 deal The
answer. from the American point OF
view. Is encouraging
@ October was distinctly "A month OF
Improvement. Of So much improve
ment. indeed, that IL has already come
to be regarded as marking dlstiactIv
Tho turn for the better Much re
mains TO be done To complete trade.
Industrial and banking read3usfmen5s.
There are still plenty Of DEPRESSING
features in the general business posi-
ton. Ii ia ultimately certain that the
COLOSSAL costs OF the war VIII have 20
be shared by this country. bat there
In reason now TO believe that Amer
can values. always based on the
soundest foundations. Will. by con-
siderable business recovery. ne Cup
pressing influences issuing from the
war. and that The counfry's political
neutrality Will carry with II q very
large degree Of economic immunity
from the hsrdsh!ps Of war.
The future - not bright II cannot
be while the European sky is dark
rned by the sombre clouds of the CO.
iossai conflict which is raging, but
our own skies are clearing month
FssfY b,
sry's foreign Indebtedness. This was
reflected in the maintenance Of for
esgn exchange al exaggerated levels,
demand sterling ruled around 497,
with cables "A cent higher After the
middle of October a declining trend
appeared In sterling exchange ana the
salling tendency which has been con
1rmed since is the elearest proof that
general betterment in our business
conditions Is something To be eande
IDENTIFY counted upon.
Improvement in the domestic
money" market anticipated the turn
for the better In the international ex-
changes. AS Septer1 Der closed. Inter
est rates were Oh about a seven per
cent basis for all kinds or arcommo-
dation. including loans on collateral
security and commercial paper To-
day the basis of borrowing negotia-
tiouH AS tlG1 even UFID Al SIX per cent.
Some uncertainty attaches In the
sequel to the forthcontcrg expiration
Of the British moratoriuu,, but all the
signs are that the London .asoney mar
ket Is In comfortable sh.pa and the
Bank OF England has steadily and
rapidly strengthened itself against the
requirements OF the future II added
fully $50 100000 gold to It's unprece-
denied holdings In the past month
while at the same time there was
material contraction In It's loan ac :
count. We are still international
debtors. but the current balance no
longer bothers us
All our troubles are not over with
by any means, and besides those
which originate in the war, we can
make trouble for ourselves The cot
Ion situation still contains an element
OF political hazard. SO also does the
establishment of the Federal Reserve
Banking System.
There In. however, no use In bor-
rowing trouble. The chronicle OF the
last three months is more than war
rant for the hope that the manage
ment OF our affairs will continue to
be signaiized by sagacious respect for
ehe teachings of experience,