New-York tribune., 1914-11-23

started operations with cordial CO.
operation from banks In this city. Inn
portant stad positions were temporari-
ly hlled by officials from local banks.
Application for the first rodiscount
OF commercial paper was made by one
OF the great mercantile banks, which
desired TO give public evidence of its
intention TO support the new law.
Later some further rediscounting was
done, and the new federal reserve notes
passed into circulation. OF course,
the actual business OF the new insti-
tuition was slight. Eventually we shall
see tangible results from the concen-
trauon OF reserves, the more elastic
currency and the greater freedom Of
commercial credits.
Money Rates Relax Further.
Money rates, which had relaxed in
anticipation of lower reserve require
ments, declined further during the
week. Call money broke through per
cent and was generally offered as low
as 4% for new loans. Time acoommo-
dauon on Stock Exchange collateral
got down 90 per cent basis. Com
mercial paper, now available for re-
discount, was freely purchased by
banks here and elsewhere, and was
placed at 5]s per cent for best names.
Bank acceptances passed at per cent,
Under the new banking act, national
banks are allowed to lend their credit
by accepting drafts issued in course
Of transactions in foreign trade.
Eventually this should result In max
ing dollar exchange take the place of
bills on London for a considerable por-
tion Of our business with Latin-Amer-
lea. How heavy has been our payment
10 London for such accommodation ap-
pears from the estimate that British
houses have received around $500 900
year for the single item Of accepting
bills arising out Of our imports Of
coffee
Payment by local houses for securi-
ties purchased in London in the last
Gays of July and taken up at last weeks
belated settlement in that market
caused some slight upturn in sterling
exchange early lest week, and this was
followed by purchase Of sterling cables
and sight drafts in expectation that
treer bond trading would result IN
heavy payment for securities owned
abroad and sold in this market. De-
mand sterling however, closed only a
trihe above ASS, the final figure of the
Saturday before.
London Exchange Settlement.
The London Stock Exchange COM
pleted its settlement for the last days
Of July with much less difficulty than
had been feared. According to the ar
rangements Of the authorities, mem
bers who were unable 10 meet their
obligations were taken care Of and
their names were not announced The
number Of those requiring assistance is
said TO be not great. The return Of the
Bank of England on Thursday showed
IN increase of only about 100000 in
loans. The reserve was strengthened
to 80 per cent from about 23s the
week before, and gold holdings i'm
proved again. Idle money Of outside
banks on deposit was some $4,000, 900
greater, but was doubtless drawn down
for initial payment on the British war
loan.
Heavy oversubscription was reported
Tor this great government borrowing.
The $3.50, 600, paying interest at 3i3
per cent, was issued at 90. With the
Stock Exchange closed, the Bank of
England made subscription easier by
agreeing 10 lend on the new obligations
up to the amount paid in at per cent
less than the bank rate In addition 10
.his evidence of the staggering cost Of
war on the present scale, Germany was
reported planning another loan Of g.
100000 600 marks. In Austria the gov
eminent loan of S2l00O0,000. according
TO cable advices, was well taken.