New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-18
FINANCIAL RECORD
HERE And ABROAD
Nav Increase ACceptanCeS
by BankS-Slight Aid
from Ship Bill.

81 VIZ Nhh'H ~
Further steps toward conserving the
,ouutry's gold supply we're taken yes
to-day by the special committee Of the
Chamber Of Commerce engaged in con-
s.dering shipments during the present
usr. Prompt amendment Of the federal
reserve act WAS recommended 20 per
nit acceptance by member banks Of
bills representing domestic commercial
transactions, as we'll as foreign, and
raising the limit 20 the full amount Of
surplus and capital, instead Of the 90
rer cent now specified. In addition. the
committee advised chat issue Of sold
certificates below $500 be stopped, so
that these orders on the couutry'S gold
should be less common.
Bank soceptsnoes, by which financial
.1stitutions indorse commercial bills,
and 20 provide wider market for such
rsper. are q prominent feature Of for
frn money centres. There seemed
rtge reason for not extending this
r-iyi'cee 20 domestic business when
the federal reserve lsw was passed, and
New York WAS quick to seize the or
rortanity for banks OF this state.
Whether or not IL will be necessary
10 accept up TO the full amount sug-
rested Is s question that can be an
swered only when New York attempts
10 assume the position OF world clear
NJ house so long occupied by London.
In the British capital, IL is understood,
banks generally do not accept 20 3
greater smount than the limit set IN
our law IS IL now stands.
Before sny great amount Of inter
rational finance can be handled here,
however, exports must be resumed with
some degree OF freedom. Too much
should not be expected OF the shipping
bin passed by the Senate yesterday.
on principle II IS desirable thing
shat an American merchant marine
should be built up. but with present
restrictions as 20 operation Of vessels
under american registry Il is doubt
f-I whether much relief will be &C
eomphshed by permitting Americans
10 purchase foreign built craft. With
me exception OF those boats now tied
up in our harbors through fear of
capture, first class foreign steamers Of
tellirerents, which are the only ones
likely 20 be in the market, have an
enhanced value because Of possible
needs as transports. How purchases OF
foreign vessels, even al normal prices,
could be made a profitable investment
IS dubious. For q few months the
President would without doubt eXer-
Csc his power 20 suspend the rsgula-
.,ors that make u almost so per cent
more costly 20 run q ship under
American regulations, but when the
present emergency Is past the laws
viii again be put into force. Added 70
this SIS the danger Of seizure by
powers 81 war with the original
owners. which a. least would mean ex-
pensive delays.
So relief from the present practical
embargo on shipments may be looked
for IN naval successes that will make
the seas reasonably safe for one side
rsther than In the establishment Of
lines Of American freight carriers.
Some such outcome was anticipated in
a. easier tendency Of exchange rates
yesterday. Sterling cables were quoted
a. 1915 % 4.9s and demand at 4.95 TO
496. There was some business m
francs al 80 for checks, with as low
as 5.O7 quoted by az least one house.
Some small amount Of grain bills ap-
pCsred ,u the market.
Fedora. opposition 10 the suggested
American loan 70 the French govern
msnt a. inconsistent with the true
spirit o. neutrality seemed rather
iliogicsI but the establishment OF for
eign credit here is of far less i'm
portance than our meeting. through
shipments Of grain and other com
modities. the balance against US that
already exists. Should the present
hostilites continue for a long period
;. may be assumed that II we can de
liver abroad what IS needed By the
people OF European nations there VIII
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