The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-28
FINANCIAL REVIEW
OF THE PAST WEEK
POrtents Of Business Improve
ment Now Visible in Va
riOus Directions.
ONE STRIKING FORECAST

Apparently the European war Is In
state OF deadlock. Whatever expert
opinion hold. about the forces which
may he working to change This position
It seens likely that nothing will he de-
ternined definitely during the winter.
Accordingly financial and commercial ac-
tivltles are unlikely to make a great re
covery before spring, hut commerce and
finance cannot and will not wait as long
as that for some improvement. This
ia especially true of American business as
q whole and review OF facts can only
shape hopeful conclusions.
Foreign financial developments in the
last week included fresh large addition.
to the huge budget OF war borrowing,
France coming In with provision for
loan OF sl7o0. 100000 to cover six
months requirements by this time,
though adjustments of foreign finance %
the war itself have been completed and
war finance can be accommodated ST.
multaueousiy with the extension Of facili-
ties to ordinary business Testimony 20
this is given by the lowering OF the I'm
perial Bank Of Germauy's discount rat.
from per cent to > per cent. and the
Bank Of England may lead next month
IN q iclNt.lpu ~ OIltttl4 ult'bNLlS 10 llE-
ures below those which ru'ed before the
outbrcal, OF the war. The bank has been
gaining perssterty in strength and las,
weeks statement showed relatively be-
ter condition than IN tho corresponding
week nine years ago, although OF course
tho reserve ratio IL stil much below tho
average for the season.
In general tho foreign financial prospect
Is not now adverse TO our outlook a1o
81, y..,t gt.s H.. a.,
OF the foreign exchanges TO move more
distinctly in our favor. Signs OF weak
ness are visible IN all forms OF remit
lance and sterling has fallen 20 very
normal quotations for this time OF the
year. As a matter Of fact gold iin-
port point has been approyimi'ed, but %
Is not expected that we viii draw gold
from abroad. We do not need 10 but the
probability is that any Chance ut the metal
coming IN this direction will be Offset
by Bank of England advances f. the
price ot gold aud by fure.gn sales OF
American securities.
European liquidation of our stocks AMI
bonds ia ~ longer tho menace which
WAS recorded with go much a.ai- ur.y
a little while since. l, e. widely seen how
adVduta geous il will Ice to tniurt them
at the present depressed and bargain
range OF prices, and The problem or payiug
for tEcm II not cause Of concern
since the downward trend of tho for
eiSn exchange market developed The
situation IS vastly different from IN. au-
tumn. when exchange was high and a Pol I
drai. was feared as q sequel TO foreign
| liquidation. Our status IN tho inter-
national money market To-Day indicates
that we will be able 20 finance through
credit instruments and without ,xf,ortIng
NanY gold the repurchase Of whatever Sc
, curiiics Europe mas To send back here. II
| has been making some return already.
but the liquidation which has been coming
! IN has apparently been largely clean
! ing NJ OF crippled speculative accounts
There has even been some small foreign
| buying In our securities market and now
| more than ever a stake in the economic
| future OF tho United States must look at
! tractiVe to European capital