The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-01
FINANCIAL NEWS
AND COMMENT
Gold Fund Committee Begins
Operations With Transfer
20 Ottawa
FOREIGN EXCHANGE FALLS

While the Official war news yesterday did
not seem TO throw much light on the
veracity OF the war rumors Wall Street
Interest IN the rumors was particularly
keen because OF tho prevailing conviction
that pronounced successes on the part
OF the allies must conduce toward rapid
material Improvement IN the international
money market and favor tho formation OF
plans FOR the early resumption OF regular
business In the securities market. Ad-
vices from London said that an agreement
had been reached between the British
Treasury and the London Stock Exchange
authorities regarding protective measures
preparatory TO IA reopenng OF the stock
Exchange, and naturally this intensified
tho interest shown In the developments
iu the war.
Il is possible that foreign exchange re-
fected the rumors OF German rcverses
IN the lighting In France. Vt all events
there was fairly sharp decline In 1ter-
ling remittance, demand bills closing ut
49S. with cables about n cent higher.
There were, however "A variety OF In
flueuces which could have been responsible
for the movement of exchange and It has
to be admitted also that significance does
not necessarily attach TO fairly extensive
fluctuations when dealings are conducted
at So abnormal a level az has obtained
in the last two months
A miscellaneous supply OF trade bills
IL coming into the market and cotton bills
are coming forward In an interval "
slackeuing exports OF grain. but the GOT
ton movement for the season 30 far IS
only about 10 per cent. OF the normal,
and there 70 no such volume Of trade
bills as yet as is required by tho eize
OF our debit balance abroad or the need
for settlement The Jewish holiday may
have made for somewhat less demand for
exchange. and the fact that the turn OF
the month had been reached undoubtedly
entered into tho reckoning.
II WAS altogether probable that the
promptness with which the gold fund
committee proceeded to get into action
figured In the course OF foreign exchange.
Before tho close OF the day II became
| known that the committee had begun
to call for payment OF the first install
mcut Of subscription TO the SlOOOOo,OOO
! gold poo. and for "a transfer OF 10000
! Geo OF the metal to Ottawa at once. An
uouncement wac made In general terms
( Of the policy which the gold fund COM
m!ttec proposed TO pursue and from now
| on tranaa ctious based on the fund Will
| be watched with extraordinary attentive
ness to see what response they evoke
| from London Predictions as TO the effect
which will BE- had on foreign exchange
are vain. but the provision OF gold which
! the American banking community has
| made and Is making this year for for
| eign uses deserves some reward or dls-
| the; betterment in the financial situation,
| international and domestic
There .- no longer any important pro-
| test against the early establishment Of
| tl. Federni Reserve banks. and satisfac-
ton was expressed that appointments OF
| class G directors had been announced
I bv the Federal Reserve Board for the
| reserve banks IN New York. Boston, Rich
moud, 81 Louis and Minneapolis. 1t
begins TO look very much now "a though
it would be only q matter of weeks De-
! fore the reserve banks were ready Tor
| operation. and banking facilities should he
| very largely Increased by thu iuaugura-
ton of the new system.
The Iron Age noted that foreign order
ing was Offering some compensation for
the lack Of domestic business. The
| T'nited states steel CORPORATION Is taking
export orders now a. about me same "a 20
! az before the war which l. a measure
OF no little recovery. although prices have
been lowered from the rather st!n adj
| vances which followed the outbreak OF
war. Quotations Tor wheat continued 70
recede. bu, corn was steady and oats were
firm. Private authorities assert tha'
there has been "A large Increase IN wihtc'
wheat acreage. Respected trade est
mates make the corn crop th's year "a
200. oO0, 900 bushels
Mitnl, the limits OF permitted dealings
business IN securities IL growing SLOWLY
I'm, encou-aGingly. A very fair inquiry j
reported for short term notes on 70 TO
III per cent. rbass. The New York Contra
* nreDar!nr TO issue up 10 100000 900 o
elk months and one year . per cent notes
which will. Il IS said. be bought by
syndicate or Il per cent. basis and Wi
tal,o car. OF the company's financial -
, uIlrements until well into 1918.