The sun., 1914-08-25
FINANCIAL NEWS
AND COMMENT
Marked Improvement Is Noted
in Local Monetary
Position.
EXPORT OUTLOOK BRIGHT
Outflow Of Wheat Continues,
Some Of It Being on
New Contracts.
EXPORT OUTLOOK BRIGHT

No essential change In the financial and
commercial situation Is to be noted since
last week The Government and our lead
ing bankers and business men are still
working on the various problems resulting
from the collapse OF the international
credit system. and while no striking prog
ress can be reported on this score there
is ground for consratulatlon In marked
Improvement In the local monetary posi-
ton.
The bank return Of last Saturday. show
Ing that through a considerable In
crease In cash the reserve deficiency was
notably reduced. Ia most gratifying under
the present circumstances Local money
rates we're, OF course. unchanged. AZ
there is no open money market to speak
of it was hardly to be expected that the
Improvement would be reflected In the
practically nominal rates now quoted.
In any case the condition OF the banks is
still far from the point where any reiaxa-
ton In the price of accommodation would
be advisable
As regards the export situation. the
outlook continues bright In spite OF all
the handicaps under which foreign trade
Is now conducted wheat is being shipped
In large quantities OF the total ship
menh OF over 10000. 900 bushels OF wheat
from ports Of the United Btates and
Canada This Ia all the more remarkable
because shipments are confined almost en-
tireiy TO the United Kingdom and Franco
Yesterday 700. 900 bushels OF wheat was
engaged for export and more Important
still. Some Of Il was on fresh contracts.
The French Government was reported the
0,, 80 4 k,,sN N,fs 80 a
an Increased inquiry was reported for
other commodities The prospect OF the
outflow OF wheat and other commodities
assuming huge proportions when the
present restrictions on foreign trade are
wholly or partly lifted was responsible
for another advance In wheat prices.
London dispatches reported quieter
conditions in the city. The rush 10 tho
Bank OF England to discount bills ac-
cepted prior to the moratorium has sub
sided somewhat. That the measures thus
taken by the Government and the bank
to loosen UP the credit blockade are al
ready becoming effective is Indicated in
the fact that A moderate amount OF new
business IN bills Is being done in the open
srkct Another sign OF the gradual
restoration OF confidence IN the British
capital 10 the proportions being made
TO open ZIP trading on the London Ex-
change In q limited way. A committee
appointed to take this matter In consid-
Grafton has made no report as yet, but II
10 probable that before long dealings will
be resumed at least In public securities.
A factor which makes such a proceeding
q advisable Is tho prospect that the London
capital market will soon be called upon
TO finance war loans nom various Brit
ish coloniea
Much interest was evoked by the con-
ference held during the day In Washing
ton. between Secretary OF the Treasury
McAdoo and interests closely concerned
with the financing OF the new cotton crop.
What methods OF dealing with this prob
lem will bs followed Is not clear. but
considering tho high desree OF Importance
that appears to be attached to This ques-
tion in Washington. perhaps there Is less
need for worry on this score than others,
President Wilson was quoted In a Wash
ington despatch as determined to stick
to his Government ship purchase plan
In spite OF all adverse criticism. But
since this obviously has little bearing
upon the immediate situation in foreign
trade interest In the question Is merely
academic.
Local banker. are still busy with the
much vexed question Of meeting the New
York city obligations held abroad. The
first maturities fall due In a few weeks
timr, 40 that the necessity OF arriving at
como decision Is becoming urgent Late
suggestions seem to be divided on tho
point as to whether II ts advisable to
meet these maturities as they come due
month by month. trusting TO Improvement
In the foreign exchange market In the
mea ntime or to make arrangements for
taking care OF the whole amount-some
$50. 900 00o-at once. II the latter course
is taken II will probably involve the iota-
ton Of short time loan bearing inter
est at a high rate.
day Joined the growing list OF minor cor
porat.ons which have passed or deferred
their dividends. The announcement made
by tho management pointed out that this
seemed 10 be the wise course to pursue. In
view Of conditions in the copper trade
brought about by the European war.
with the prospect for a scarcity OF capt.
tai for new undertakings II Is likely
that new Incidents OF the kind Will be
not uncommon among the smaller corpor-
ations whose resources are not too large
for emergencies
Some Inter est was aroused by the re-
ports OF an agitation In favor OF grant
ing Ito railroads higher rates IN the West
Apparently. the Idea behind this and
many other emergency measures hastily
lggested Is that such step would stop
liquidation by European investors and act
as a cure for the whole situation. But per-
t ans the most extraordinary feature OF
this movement Ia the fact that II appear
TO have It's origin In the state OF Texas OF
all places In the country certainly the
most remarkable to give birth TO any mo-
ton In favor OF the railroads