New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-02
REVIEW OF THE
STOCK MARKET
European Bank Rates at
War FigureS-Rate De-
CiSiOn Rendered.

There were no stock markets open
anywhere IN the world yesterdays
Trading IN securities was suspended
IN every quarter except for transac-
tions Of an insignificant aggregate,
which were contaminated privately.
Nevertheless the financial district was
~ no means idle. The heavy drain OF
gold cot Of the country and the clos
inC Of the Stock Exchange. which NOR
silly stops tho banks from drawing on
their secondary reserve, call loans,
produced the result that was generally
expected but not publicly known until
sftcr the publication of tho bank state
mcnt There II was seen that cash
holdings OF the banks within the week
had decreased over $56,000,00, with
loans hardly changed, and th0st the
surplus reserve Of more than $4,000,
coo recorded by the Clearing House in
stitutionS az tho end OF last week had
had 90 give way 20 = deficit OF nearly
$iT.500,000.
In anticipation Of this development
tho more important bankers OF the city
took steps on Friday 20 arrange with
the Secretary Of the Treasury Tor INC
issuance. Y necessary, Of some OF Toe
$500 O0O 600 emergency currency made
available by the so-cslled Adrleh-
Vreelan6 act. Mr. McAdoo announced
the readiness Of the department 10 do
All that was necessary and legitimate
10 ssd IN ameliorating the conditons
proSrccd nv the European political and
BANKING comnhcstions. As one of the
best-knoWn bankers in the country said
last night. it has been made impossible
for 3 situation such rs was seen IN
1907 TO arise again. There cannot be
= currency famine.
The steps that the bankers have
taken arc precautionary rather than
ar,,th,Dr moro serious. Il is reccg-
pilcd that there cannot be a lslocS-
, ton OF the international money mar
ketS, whether Of brief or long duration.
without some chance Of its working
hardship here. To do away with that
chance the bankers have acted promt-
". They have also had in mind, too
the necessities Of the farmers IN the
West FOR funds wherewith to move
their crops. Ii IS a fortunate thing
for the whole country that the emery
ency has found II with the banks IN
the strongest possible condition, with
no ovcr-speculation in either securities
or general trade, but rather the con
trsry. and with the crops the most
b6untiful that have ever been known.
In Europe conditions have never.
perhaps, been darker. The WAY outlook
was gloomier last night than at any
time since Austria declared war on
Servis. But with the closing Of the
Stock Exchange Europc'S ability 10
withdraw gold from this country has
been reduced TO a minimum. II II rs
found necessary her Withdrawals can
be stopped altogether, even n some
similar device 20 that OF the early 9Os,
when the bankers Of this city agreed
20 make no exports, has 10 be found,
Yesterday the Bank Of Englsnd'S dis
count rate went 70 the prohibitive hg-
ure OF 10 per cent, point never ap-
preached since the panic Of 1866, and u
was unoficially reported that Psrlis-
ment would be asked on Monday TO sus-
pend the bank act, which obligates the
bank 30 have 100 per cent in gold for
every note issued. Other European
bank rates WENT up 10 war figures, in
GLIDING the Bank Of Frances, which
was set at per cent. Every material
indication pointed 70 a war in which
all the great European nations would
be involved, and only 3 miracle &C
seemed, could avert II.
general European war viii not
mean unmixed prosperity for the
United States, but il will find this eoun-
ttry better of than II has ever been.
Europe IS not sufficient unto itself. 1t
must have foosdtuffs, and 1t Is the
United States which will supply them.
With every eve turned upon the
great news v the day there viii not
ben UGH attention az trst for the long
awaited Eastern freight rate decision
Of toe Interstate Commerce Commits
sion. So long as that decision had to
he delayed, IT is fortunate that 1t comes
al a time when 1t can be read soberly
and With its import not clouded and
confused by the fluctuations Of stock
prices
II is still too early TO generalize
with safety about the decision, since
. IS <rV text has vet TO be made public,