The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-04
FINANCIAL NEWS
AND COMMENT
The Foreign Exchange Market
Shows Signs Of Real Under
lying Improvement.
LONDON ACCEPTS BILLS
Hope Of Helpful Conclusions
From To-day's Banking
Conference.

In the slow way in which unprecedented
difficulties have at the present time 10 be
overcome by finance and business II Is
going to be hard to trace from day to day
the evidences of betterment in the sit
uation. Al the same time yesterday fur
nshed further indications that financial
affairs wero being skilfully handled and
that progress was being made toward re-
lieving the strain on the international
money market which has had so untoward
a reflection on domestic finances.
Individual interests here. working after
their own fashion and sometimes as a re-
suit Of much consultation among bankers,
have helped TO contribute toward a less
ening of money market tension. What
ever has been done. however. has had 70
be done by Joint arrangement with foreign
and more particularly with London
bankers. British finance. with the coop
Grafton OF the British Government. has In
q months time done remarkably we'll to-
ward the restoration of the equilibrium Of
the London money market to which the
whole world 10 In debt.
Naturally enough British financial en-
deavor is directed in the rrst place to the
reesta blishment Of financial communica-
this country. which Of all nations b In
the best position to liquidste its foreign
obligations and provide resources for the
resumption OF the principal international
money market operations on which do
mest1c money markets have in modern
times become 80 greatly dependent. The
indications OF yesterday were that q be-
ginning had definitely been made in the
improvement Of financial dealings between
London and New York.
British leadership has had TO be fol
lowed and Il IL probable that London will
continue TO point the way for our own
financial recovery. but a good deal OF as
sistance seems to be promised by the
banking conference TO be held in Wash
ington to-day under the auspices OF the
Federal Reserve Board variety OF mat.
tiers will be canvassed by this conference
But Wall Streets interest is keenest In
the conclusion which may be reached re-
specting the provision OF facilities TO
broaden the dealings In international eS-
change. II ways can be devised 70 put
some Government sold at the service OF
| the international bankers together with
soma provision OF gold from general bank
| ing resources there can be no doubt thai
| London efforts to right the situation will
| be vastly encouraged with consequent
benefit to ourselves.
The foregoing remarks are moro or les
inspired by the fairly distinct tokens Of
| foreign exchange that the internacona
| money market is getting into an easier
! position There was yesterday not only d
| more liberal offering OF bills but offer
/ ings were for larger amounts and IN
cluded not only export bills but bankers
4 paper n supply OF which WAS promoted by
| London advices that ninety dav &c
ccptanccs would he granted at i% pc
cent Demand sterling closed at 30
and cables at sos and there was said e
have been some business in continental
exchange although the signs that Pari
would soon be In state OF siege seemed
! TO kin the market for French exchange
one OF the questions which Wall stree
asked during the day was whether or not
| in the event OF German capture q
/ Paris tho Bank OF Frances gold hold
ings would be regarded as private prop
erty. Opinion here was not able 10 reacI
a satisfactory conclusion on this score
Further small taliings Of gold FOR snip
meut TO Canada we're announced ana !
would seem likely that within the nea
future there might be a considerable move
ueut across the border H. as now seem
possible, an effective way can be foun
TO make gold exports serve more use
ftl purpose to the United states ana I
tho world at large than by bank hoard
ing OF tho metal FOR exclusive domesti
purposes To-days conference by antlcl
pation played its part In the notceabl
relaxation OF sterling exchange.
So also did the supply OF export blll'
among which It was said were some cotto
bills The agricultural markets were 4
strong, but wheat was the feature or III
terest with a rise of cents bushe
May selling above sl.@o. The fresh ao
vance was direct response 10 the expoi
demand Arrangements for taking car
OF the New York city obligations matur
ing abroad also relieved the foreign eS
4 change situation, but the principal fat
tor was the certainty that British hnanc
; with Government cooperation had hegu
to see It's way little moro clearly an
had been able to effect substanui
Improvement In the money market
Visible proof OF this betterment wa
. Afforded by the Bank OF Englands week.
return, which showed an advance OF MOI
than per cent in the reserve rat
despite the quantity OF discounting whic
the bank has had to do. The bank
holdings OF gold increased more than vi
OOo,O 900, bringing the total In the last fot
!, weeks UP TO more than S1OO,OoO,OOO,
that while the obligations OF the instit,
0 tIon have expanded enormously the go
basis is OF almost unprecedented pr'
0 portion. II will not do TO take too ros
0 view OF the International monetary In
a provement when tho fortunes OF war ma
administer a shock TO the whole financ'
Q world at any time. but so far II ce
tainly can be said that progress has bee
achieved In repairing some OF the fnal
clal damage which the outbreak of WI
has done.
r A matter which attracted hopeful a
4 tentlon during the day was the announc
ment that President Wilson had ngre,
J: to meet representative railroad men
"a conference next week 10 consider II
/, Governments attitude toward the comma
r carriers. II Ia obvious that from such
/. meeting mieallt issue processes which wou
enable the railroads to deal with Il
!: emergency with which the war has co
y fronted them.
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