The sun., 1914-08-18
FINANCIAL NEWS
AND COMMENT
Japan's Ultimatum Stirs Anew
Discussion Of Length of War
and It's Effect.
SOME GRAIN Is MOVING
Wheat and Flour Shipments To-
tailed 3,726,OOO Bushels
Last Week.

Although the news was not Of a strictly
financial character the ultimatum sent by
Japan to Germany announcing the en-
trance Of that country into the European
conflict occupied a largo place In diecus-
sion Of the outlook yesterday. Not even
President Wilson's assurances that he has
no reason 60 question Japan's good faith
in the matter served quite to allay appre-
tensions on this point. The increasing
friction that appears to be developing
between some of the minor European
Powers was also the subject of pessimis-
tic utterances on the possible scope and
length OF the great war and Its eject
upon the future OF business and finance
here. Hero too Secretary Of the Interior
Lanes Views Of the great beneft to be
derived by this country from the war
abroad were poor consolation.
Nor was sentiment greatly helped BY
the stand taken by the State Department
In regard to the question Of loans TO
foreign Powers now at war. Nobody
has held that a foreign Government loan
at this time would be desirable. but there
is room for doubt. II there were any
serious ideas of attempting to float
long time loan with the banking position
here in its present case. Apart from
any question OF the rights in the matter
there was feeling that the unprece-
dented step taken by the Administration
betrayed an attitude not In accord with
a full realization OF the problems facing
us and OF the necessity Of entire CO.
operation In restoring the regular chan
nels OF foreign trade. This impression
was disslpated TO some extent by the
announcement that President Wilson ap-
proved fully the bill designed to admit
foreign ships TO American registry. Pre-
sumably this indicates that a question OF
great urgency. namely. the providing OF
adequate shipping facilities is to be
pushed as rapidly as possible.
Some definite Improvement was found
In the foreign exchange market. where the
return OF more or less normal conditions
for navgat on on the Atlantic trade routes
and the arrangements made by foreign
Governments to stimulate exports Is al
ready having n wholesome effect While
the market is still very narrow one,
grain bills appear more freely. showing
that some grain is moving. The statis-
tics of wheat exports also show that some
overseas trade is gong on. The total
wheat snd -four shipments last week
amounted to 3.726.0O0 bushels. compared
with 6.j9i.O0O bushels the previous week
and $3.50 bushels for the last week OF
July.
There is stlll no open call money mar
Ket, out borrowers were ADle To secure
accommodation from their banks at the
same rates in spite OF the unfavorable
bank statement of last Saturday. which
showed a round increase in the deficit.
About $1,000. 900 more of emergency cur
rency was taken out yesterday. testify
ing that the monetary position here is still
In an abnormal state.
Discussion still goes on over the adop-
tion of measures for the suspension of
bank reserve requirements In order that
gold may be released for the payment OF
our debts abroad. An important con-
trbution to this discussion yesterday was
a Modification of the plan previously pro-
posed for the counting OF national bank
notes as reserves. The modified plan,
which IL said to have the serious con-
sideration OF the authorities. is for the re-
duction OF the legal requirement on bank
reserves 10 the percentages stipulated in
the Federal reserve act, tho Federal Re-
serve Board to appeal to Congress for
the necessary legislation. Otherwise IL Is
thought that the Comptroller OF the Cur
rency might he persuaded 10 insist on no
greater reserves than are required under
the new act.