The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-25
FINANCIAL NEWS
AND COMMENT
Banks Report n Reserve Sur
plus Of About 49,
500, 900.
FOREIGN EXCHANGE DROPS

Al 'rs previous Indications OF impr,v-
re acrl!tons In the money market re-
sul'trr from Improvement in the banking
position we're summed up and confirmed
IN yesterdays report OF AVERAGES for the
New York Clearing House institutions.
For the FIRST time since the outbreak OF
the war a surplus reserve was shown.
This aggregated about ss,500.0o A gain
Of more than $1,000. 600 in cash and a de-
GREASE n about s1O.50O.OOo In deposits
resulting from a contraction OF more than
81 ooo. GOO m the loan account were re-
,nars.h,N FOR 60 decisive an extinction
q, me deficit in reserves which had been
90 long reported ana amounted to
.ls ooo 0oo In md-hugust.
NJ course those results wcre not sur
p-sng They had been pretty definitely
Indicated 10 the successive bank returns
IN the past month. hut II II "a gratifying
feature ~ ,Nr financial situation, which
has another satisfactory aspect IN the
yrrs - ;as foreign exchange market that
the international money position is I'M
provnc also Reduction in general bust
ness and tho curtailmeut Of activities in
various directions are working the nor
nal c,re for financial strain and tending
toward 'hc establishment Of conditions
from winch sound business recovery will
btcom" possible.
The processes ot retiring emergency
currency ard Clearing House certificates
which were begun here and ut other
banking centres I'm the past week all
ro.rtsI - 4 more comfort able monetary
situation fact which was further
ev!rcfd by the increased activities OF
borrowers aud lenders. with rates tend
4 a NO
minimum, basis Cor all kinds OF accom-
rodl'ou The strength and activity Of
the short time not, market and the mod
crate broadening ont OF business In In
vs--rsnt securities within the permitted
limits ~ official supervision were synp-
toms " more confident sentiment. as well
As Of monetary relaxation. SO also was
the lac: that dealings In securities In
the outsde market tended to become more
,I,crs,v. aud Include methods OF trading
customary to tho organized rarkt
TIE f.atur, " transactions ~ securities
Indicated indeed that there was growing
pressure 10 provide some semolance OF
the regular ma k"t. and although the
banking community does not yet see It's
wav clynr 20 undertake the rcopening or
IN urinary stock exchanges either here
or abroad progress H. being made In the
removal OF various difficulties and some
valuable contributions are likely 10 he
Afforded soon toward n Stlullbu VI AlF
Stock EXchange problem. The opening or
,ha cotton exchanges seems to be com
ra-atlvely near and this will release
good deal ~ business and banking activity
now In a state OF suspension. Tho pan
for large banking syndicate TO make
loans on cotton which will protect prices
against excessively heavy selling has been
brought into workable shape
viii the cotton future market restored
there rs quite sure to be a large Increase
in the export movement OF cotton and the
rlaXing tendencies 81 sterling exchange
VII bo accelerated. our import trade Is
remarkably well sustained. but IN" re-
eoverv Of exports Is proceeding In most
q couraEinC fashion and foreign exchange
bankers are persuaded that the !nterna-
fiona money market will finance the set
element OF our debts abroad without call
ig for the outward shipment OF more
g,ld than has already been provided for.
perhaps without as much Of n gold export
.. that contemplated by the New York
city loan syndicate and the gold fund
project Sterling bills declined about six
cents during the week, selling Al their
lowest yesterday, when demand was
quoted around 492 and cables at 492A
A striking development In the exchange
market has been the hollow weakness OF
German remittance. Re!chsmarks were al
.rOSt unstable below 90 cents. level
about -, per cent. below the normal
Various differences were drawn from the
course ~ German exchange. the most In
terssting being that IL expressed the Judg
ment ~ the financial world that Germany
was headed for eventual defeat IN the war
A factor 10 he reckoned with in bank
fig calculations was presented by the
D aspect OF inaugurating the Federal re-
serve system at the end of next month
Official estimates made at Washington are
that the opening Of the reserve banks
will automatically under the law release
So74 O00. 900 OF reserve money impounded
IN bank vaults under present reserve
requirements.
Politics does not concern bankers and
business men very much NJ the moment
because Of the more urgent considerations
which are clRmorng Gor attention. The
absurd hllhuster which broke out against
the adjournment Of Congress In n vain
effort to emphasize grotesque demands for
Government assistance to the cOton
grower was. however. n reminder that
political folly has had its share in legis-
ls,ion which is going to be troublesome
by and by.
The political matter OF largest concern
tus' now Is the reopened Eastern rate
Css" pending before the Interstate Com
nrrce Commission The attitude OF the
commission In the hearings OF the last
few days seems TO imply the likelihood Of
rejection of the railroad request Vr
relief n this is the outcome Of the case
DE country will have TO make the best
O. Il until events demonstrate the i'm
pera'lve necessity OF changing regulative
policy toward the railroads. but present
financial difficulties will be increased by
The failure OF the commission to recog-
nze - extent to which all interests are
Involved In the provision OF support for
railroad credit.