Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-10
fTNANCIALSTTUATTON
AGAIN REFLECTS AN
IMPROVED STRENGTH
Weekend Sees Change for
Better and Outlook Is for
Fall in Money Rates.
Banks Gain Cash.

decided change for the better may
=. rcported in the financial situation. 1t
,s reaected in the progress made in reduc-
Ing the reserve deficit Of the New York
ottv banks, which has been accomplished
nv both a reduction in loans and a gain
In cash.
The deficit is below SIS 100000, reduc-
,Ion Of $8O00O,O0O from the maximum
reached shortly after the outbreak of the
war What is encouraging is that the
trend of the currency is still toward this
centre, indicated particularly by the
premium paid in Chicago for New York
exchange. Tho interior has not been hit
as hard as has this locality by the Euro
pean cataclysm. And the grain crops are
40 large and are selling at such high
prices that the Central West and the
Northwest are prosperous in spite of the
war handicap.
A quiet liquidation of loans is also be-
ing accomplished without harm, which
in itself reects generally improving con-
dltions. N
BANKS BUY PAPER.
The New York banks are going into the
market for commercial paper on larger
scale. One prominent Chicago banker
predicts that by December the money rate
will be down to per cent 1t is now
and per cent. in the East and to s per
cent in the West, principally per cent.
The gain in legal money was effected
by banks last week In spite of shipments
OF SIC, O0O,00O gold to Canada. Heavy trans
fers have been made to Ottawa this week
under the operations of the s1OO, 900, 900 gold
exchange pool, so that we have sent al
together to the Dominion nearly $3l ,000,-
900 of the metal.
II is remarkable, in all the circum-
stances, that the monthly Treasury state
ment should show for October / an in
crease in gold circulation of the United
States Of over S17.50O,00O from Septem-
ber 1. Hoarded gold is apparently COM
ing out. OF course, we gain an average
Of about S7,O00,000 monthly from our
mines. as England is now gaining S15,-
100000 month from Africa. There is
no reason why the United States, having
demonstrated its financial strength and
ability, should not be assisted by Lon
don in extending credits here to help
solve the exchange problem.
BOND DEMAND is GOOD.
Naturally the relaxation in monetary
conditions is encouraging the demand for
railroad bonds of the first class and short
term corporation notes. Transactions in
the former are under the supervision OF
the Stock Exchange Committee, but the
concessions from the closing prices OF
July 80 are said to be only slight The
dealings in notes are free from super
vision, and these obligations are traded in
on basis of from SO per cent. to per
cent, according to the class of the docu-
ments.
Locking of the doors against reckless
slaughter of sound American stocks both |
In London and New York has helped TO |
stabilize the situation The action of the |
London Stock Exchange in adopting the |
final July 81 prices as the basis for oper-
atoms in yankees" was highly appre-
ciated here. 1t tells of a spirit of CO. |
operation between the large interests on |
both sides of the Atlantic, which promises |
well for the markets when it Is decided |
to be safe to reopen the New York and |
London Stock Exchanges.
THE COTTON SITUATION.
An illustration OF the cooperation which |
The banks are using in dealing with all |
phases OF the existing complicated situa-
ion Is found In the project under con-
for assisting the Southern
planters. Many Southern and Southwest
srn banks are planning 10 raise a. Iund
II sl50o00,000 to be specially devoted to
oans to planters, so as to enable them
o carry that part of the crop which will
be unsold because of the reduction in the
'oreign demand for raw material.
This fund will be guarded by proper
limitations and will probably be appor-
toned, under the approval of the Federal
Reserve Board. pro rata according to the
financial strength of the institutions, Just
Is the contributions toward the 100000
100 gold exchange fund were arranged.
rhs specific cotton credit fund would be
sufficient TO take care of 5000, 900 bales at
cents a pound 1t will afford an i'm
nense relief to the South and thereby do
rood to the whole commercial position.
COTTON NOW is CHEAP.
Cotton at current prices is undeniably
heap and the American relief plan.
coupled with those adopted to assist the
Egyptian fellahs. will tend TO bring
hat fact 10 the close attention Of such
lone and foreign spinners as have been
,olding OFF from purchases under the
dea that they will be able 10 secure their
upply for a song.
The 81. Louis plan, as it may be styled,
5 likely 10 be followed by the banks
WIN regard to every other industrial po-