The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-02
FINANCIAL NEWS
AND COMMENT
Committee Now Ready to Sell
Exchange Against the
Gold Fund.
i'RICE or STERLING FALLS

Wal stree, interest convetged yester-
Gay on the preparations OF the gold fund
committee to begin operations in tho in
ternatlonal money market II became
known that already more than so per
cent OF the total OF 100000 900 had
been subscribed By the clearing houses
% the country and no doubt was feit
that the smaller and more remote centres
would contribute their allotted quotas.
The committee made further publication
OF the general rules which vii. govern
AFFILIATIONS for exchange and the methods
of dealing with them and Indicated it,
readiness to- begin business at once with
requests for demand sterling remittance,
the matter OF cable transfers being left
for further determination.
II was re her definitely implied by the
committees reimbursement that q would
exercise discretion ln complying with the
requests for exchange, and the compO-
sition OF the committee comma nds entire
confidence thai 'ts rulings will be t1lr
and impartial. Tile market would like 20
know what policy Is going 20 govern
broadly in the operations and asks a
variety of questions OF practical concern
Bout the probable level ui rates at which
Exchange Will Dee sold But " Is more
~ Jess assumed that tho committee will
MT seek - force "a movement Of exchange
quotations downward. but that ~ will
merely attempt 20 use tne power placed
IN its hutl. 10 .pplv brakes TO any up.
ward tendency,
A. a matter = Ia, the whole operation
Sc veIf largely Ar experiment. although
q promising one, because II Involve. con-
Certed acton IN a situation which re-
uuires something OF the sort
Foreign exchange prices fell further.
reaching their lowest toward the end OF
-As day. when demand sterling was
quoted ~ 4gG5t with cables "A cent
higher Presumably tine five. cent rene
gion which has taken place in exchange
since the success sful formation OF the pool
became assured is more clearly a refec-
tion of IN, experiment which has thus
been inaugurated. bus - far the reilec-
.fon ha. be.r chi.l1v continental No
rXch,us. mas been sold on account OF
;he pool and 10 was only yesterday that
;hc first rstaineu' OF gold to Ottawa
was shipped
IL rs Go be- AJped that th, American
Nanii;ig commonly will bo encouraged IN !
SIS present euactvor. tp facilitate the
settlamcu, of the coun IS foreign debts
and help relieve 'hc International imam
c.al strain py some reward ~ more den-
'nite response .h.u the London money
ruark,f has yet iuats Underlying finan-
rll tcusiou m Lo0tlu cannot bc doubted
despite the appearance ~ plethora uc
fund, there. hut Is would sccu, never
fheless th1t Brltsn money lenders might
go further than th,y have doro IN CO.
operation with financial enterprise here.
The allowd1C" Of extra days of grace |
IN the British moratorium must contribute
20 q further easing 81 ia. London posi-
ton, and tue Bank Of Englauds weekly
statement shows that extraordinary re- .
sources are available or London bank
err IN general II thcy have tho courage I
20 use them.
Deposits ~ the Bsnl, Of England are
huge and NJ course this increases the
liability o. the central institution enor-
mousy hut the banks condition Is
Strengthening all the time. II holds al
most Sl3.Uun,upo more gold than 10 ever
aeld N Us history ana has gained about
S25,00o,000 since ne outbreak OF the