The sun., 1914-08-29
FINANCIAL NEWS
AND COMMENT
Foreign Exchange Still Strong,
DiscOncerting Those Who
Look for Drop.
HEAVY WHEAT EXPORTS
Most Of Shipments on Old Con-
tracts-Special Credit
Arrangements.

Tho foreign exchange market, which
furnishes the best barometer OF changes
In the present difficult situation as re-
CARDS international finance and trade was
again very strong yesterday. The pro-
gressive advance In rates this week has
been disconcerting to those VINO have been
counting on an early ana decisive break
ing OF the deadlock. Bankers report that
negotiations are proceeding looking toward
a broad plan which will take care of the
city of New York's maturities and other
Indebtedness of the kind and also greatly
facilitate the export trade movement
along normal channels The general un-
derstanding has been that the plan would
involve the shipment of certain amount
of gold to Ottawa, which 1t Is expected
would have a salutary effect upon the
London credit market and in turn relieve
the situation here.
But meanwhile the time when the first
of these matuidtles falls due is drawing
near and until these special arrangements
are definitely put through there ia likely
TO be a broad and increasing demand for
exchange. The present urgency II this
demand for remttances IL exhibited by the
manner In which rates advance despite an
undoubtedly larger supply OF grain bills
Tho exchange market ie OF course ut
teriy abnormal. But even allowing for
this the fluctuations call for constant re-
mark. Advances OF 2 cents more be-
tween transactions which arc necessarily
small are not uncommon. These compare
with movements of points or even 2n
points in quotations In ordinary times.
Heavy exports OF wheat continue. Yes
terdays shipments from American ports
amounted to i165,00 bushels. Brod-
streets statistics OF exports of wheat for
tho week were 9397 900 bushels. as com
pared with $4,000 bushels last week.
Most OF these shipments. however. are
on old contracts and are covered by
special credit arrangements Moreover.
trade authorities estimate that at the
present rate OF shipment all existing con-
tracts with the United Kingdom will have
been fulfilled. As far as fresh busi-
ness is concerned little has been done
in the past few days and the outlook
does not look particularly bright. The
sensational rise in wheat options is act
ing as an additional restraint on at
tempts 10 negotiate new shipments.
Another complication in the foreign trade
situation has been the notification from
Argentine exporters that gold will be
expected in payment of imports Of corn
contracted for at much lower prices when
tho nev tariff law went into effect.
Wheat options reacted rather sharply
yesterday, although the fail was nothing
more than might have been expected
after 80 violent a rise. There are plain
etkHS l4ldl lllt III t1e kFdln
markets Is increasing and Il is not i'm
possible that we shall shortly see a broad
outside interest in the com modify mar
kets New York Stock Exchange houses
with Chicago Board OF Trade connections
have been doing a big business in grain
opttone. some indeed having arrived at
the stage where II was thought advisabl ble
TO limit tho acceptance OF further buying
orders at the present time. Quite a num-
her OF exchange firms are now consider
Ing buying memberships on the Board OF
Trade, where the possibilities OF spec,ila-
tive activity in all sorts OF commodities
present themselves
The special inquiry Instituted ny the
Comptroller Of the Currency into the man
ner in which the situation as regards
call loans on stock collateral has been
handled since the closing NJ the Exchange
was pretty generally regarded az OF no
particular Significance except i'm that Il
indicated tendency on tho part of the
Treasury Department 10 NEEDLE with a
situation that requires delicate handling.
Tho ostenslble motive for the step Was
that the national banks have been i'm
posing unnecessary hardships upon bor-
rowers. But Il has been obvious that
throughout the present crisis the bank
and their customers have acted in COM
plete harmony II thcre have been any
complaints made II IL extremely unlikely
that they originated IN the financial dis
trtct As far as the banks are concerned
any action Of the kind ntmated would
not only have been unwise but impossible