The Cairo bulletin., 1914-09-07
EXTENSION Of
MORATORIUM IN
LONDON, Event
Clews' Letter on Financial Situation
Anticipates Normal Conditions
Soon
VALUES Low; SITUATION
Is FREE OF INITIATION
Country's Gold Supply Is Ample and
Need Cause No Concern
Whatever

New lOFk, sept os--L ne AlhPot L
ant event of the week was the extern
sion of the moratorium in London.
which disclosed evidences of plans
III the course of formation which
will ultimately lead to at least a
partial breaking of the present dead
lock. There is at present no pros
pect in sight of an early opening
of either the London or the New
York Exchanges. Nevertheless. We
are steadily approaching the time
when partial resumption of financial
operations is to be anticipated New
York is fortunately in a good posi-
tion for reopening when London is
ready to do likewise. Values are
low and the situation ere is entirely
free OF imitation. Th3 greatest OBJ
stacle here to business resumption is
the financial position. Our foreign
exchange market though improving
is still practically bloekaded. A lit
tie more business is being transact
ed in sterling, but foreign credit is
still demoralized and International
transactions are largely upon a cash
basis Fortunately both imports
and exports are returning to more
normal conditions Trade with
Germany of course is practically
closed, but an increasing amount os
traffic is being maintained wits
other countries. The exports from
New York last week were value,
at 100000, compared with SIS
100000 the week before and S12,.
100000 a year ago. Our imports at
New York amounted to st2,000,00
last week, compared with $t7,300,-
COO the previous week and SIS,
100000 the same week year ago.
These figures include New YORK
only, which is port where the i'm
ports are relatively larger than thf
exports. Conditions are becoming
more favorable to exports than te
imports; for the dullness of trade
here and the war abroad will en-
courage the selling of our food pro-
ducts and discourage the buying of
foreign Injuries. Our exports of
manufactures are already recover
ing. This means that the net re-
suit of our foreign trade will soon
be more normal excess of exports; !;
o factor which will do much toward
restraining any excessive shipment I
of gold to Europe. The eountry's
gold supplies are ample and neef
cause no concern whatever. In tht
Treasury there is probably over 81.
GOO. 0,0e0, and we could readily
spare reasonable amount to Eu
rope without any great inconyienec
The Bank of England Is working or
reserve of 5000, 600, 900 and meet
ing far greater emergencies than ex
;st on this side. The unfortunate
feature Of the situation is that ths
foreign demand for gold has faller
almost entirely upon the nationa
hanks. Fortunately through the
operation of the Aldrich- -Vreelard
oct and the, energetic assistance OF
the government, the emergency has
been we'll met. Some of the propo-
sitions advanced have an in1ation-
ary tendency; but as time limits
have been placed upou their opera
tion, it is not likely any untoward
results will follow.
President Wilson is pushing his
shipping bill with his usual vigor.
II now looks as If the plan Tor the
Government purchase of ships te
tho extent Of s30,0O0,00O will be
adopted by Congress With Presi.
dent Wilson's desire to establish an
American marine, all good Amcri
cans will agree. But government
purchase of ships meets with strong
oposition in some quarters for ths
reason that there is plenty Of avail
able tonnage seeking employment
although much OF that offered fol
sale is not of suitable type. More