The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-02
FINANCIAL NEWS
AND COMMENT
AIMED At GOLD OUTFLOW
War Crisis in Europe Sends
Rate Of Foreign Exchange
Still Higher Here.

INC biiutludl event ~ ~" Wui ID IS
moloy markets Yesterday was the rails
Ing hH the Haut ct England OF it's official
discount to 10 per c,ut n It were not
already Obvious tuat the step taken by
the directors ~ That institution is one
OF extraordinary emergency. MS gravity
would be- sigulncd hy the fact that only
one before IN history has such a rate
been established aud that ON the occasion
of inc failure ~ the great private bank
ing firm Of OVcrcud, Quincy q Go.
The rate adopted rs. VI course. sim
ply prohibtivc and IL Designed tu impede
the withdrawal of gold. Other measures
directed toward the same end were the
raising of the German Bank rate from
. to . per cont. the French Bank rate
from 49,. to 6 per cent and the Increase
a the Belgian Bank rate from . 10 per
cent Iu Hike manner the Bank Of the
Setherlauds Wa reported to have Sc
cured authorization to reduce cash te-
serves against outstanding notes from ~
.p 20 per cent.
H'r, al, crisis in financial affairs was
exhibited iu q continuation 81 the utterly
disJo.ut,d conditions Of the foreign ,N-
change market \ further rise IN sterling
,ablcs brought tho rate To- ~" prcpost"r-
'uf UENt' ol -. WIN h'ihtub StllibE
quo,,d about $3.50 To- 80. Gold con
tnuod H. arrive h'rc from Philadelphia.
he day . shipments being s3O,Oo0.u0o.
maAIug = total uC SaO.OuO, 600. Another
100000 .u guld was shipped To London,
aud m" weeks shipments t. Canada were
increased hl s3,N5uU0o. Tho publication
- tn, v rklN bank settlement was IN"
most important routine dryoiopm' M OF the
lay. The figures naturally showed q big
~, ,r.,.,, ,u,n,y. - ,,fd dn,',, ~
., 80, l,,'s '.,,I,t.,,I ,,.,l, ,h. usual
- - -, - o.. -. -.
''' 49,,
"'o''.' ~ Jun ~" o. vs. ''
."s' W. '''. .',''. ~. "'"''' "' '.'-''-
WV ~ Tue l' t'a. S""' s,'''' ''e''l ".,.I
"' Ut. ln'N'' .'I. "''"'''''h F "U 'n'
'rcun -''h''s. WIN t'' lt'''""'n7 '''''n
placeI un'" IN" ''l.,, .' MOVING mus
70, '"hSh'f'H t''NlNl1E rather 'Nah
othcrw S'
Tho announcement fhdt the decision IN
nc advanced rat" case would 'e handed
down al % O'Clock va, an incident mat
caused It'll" remark. tbs event, ior
which the street has waited arNi"us.N Tor
months. no" seems inconseuucntiM beside
''c d''''ppn'uts OF tremendous import
hat the financial world y facing abroad
\ development OF The dai having a highly
important bearing upon the Vocal banking
situation was the meeting o. foreign "N
change bankers to consider the best
means OF dealing with the prescott "N-
'~aorduarl conditions Ia the cN hangc
market and OF deysug means looking to-
ward % stopping of the gold export move
Wcnt. The wheat markets continued in
o nervous state. but the decline was far
less serious than previously An inter-
estug point in this regard was the re-
warkahlc record OF weekly exports re-
f..I I,rs Rgt.Igfrf.ffg r. 10,
,hcsc figures exports Of wheat ard Nour
exceeded all previous totals.
An encouraging s.-u as regards the ro-
mestir situation was the news that the
resident Is bending all his efforts toward
the settlement # the differences between
me employers OF the Western railroads
md their employers. The removal OF a
threatened complication OF this kind
would be a gratifying performance
|, was wc,E biz wish events u
worldwide Influence, both political and
financial. TIL" -udd.u dey, iopm,ut OF
the clash betwt cn Austria aud SoryIa on
Nonday into Oh state of tension abroad
rom which no way out appeared except
IA general European war simply over
whelmed thu whole financial nd business
system Of the world. \ practical paral-
ysis ~ finance and business Cnsucd. I'm
Ter an avalanche OF hyStcr.cal lquidl-
ton from an quarters the Coutuen'a.
security markets mrs, surcumb"i, deal
.ugS I'm London, Paris and Berlin being
pract.c lv suspended early ia tine week.
The New York Stock ENchango kept open
longer and bore IA" hruut Of euurmpu.
selling. both for foreign account and from
local holders. Bu' the nee, ssity Of alb
sorhng the selling Tor all tine world finally
produced "a hrc %, IN prices which assumed
III tn, proportions OF ycr.tahlo panic.
ON Frda, the London Stock EXchango
formally glusod It's doors ana the Kaiser
declared his empire under martial law.
The Stock Exchange confronted with "a
perfect land Tide Of selling closed It's
fNors Coucidcnt with the collapse In
stock prices cotton. grain and practically
tJ Ia" principal commodities Cr shed
downward Tho tremendous strain To
which the markets had been subjected by
this selling was cSuihitod Oh Friday by
the failure Of two well known Stock
Exchange houses one with "a Cotton EN-
change membership, aud two Cotton Ev-
"" "' 10" 1''''
MS sid, Of the Atlantic they were .u-