The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-08
FINANCIAL NEWS
AND COMMENT
Less Tension in Various Direc.
lions With More Work
able Conditions.
CROP REPORT FOR AUGUST
Deterioration In July-Total
Wheat Yield Is Put at
911,OOO,OOO.

Further Indications that banking and
business positions were being eased of
strain both at homo and abroad were
furnished yesterday. Taken In the ag-
these tokens do not amount to
a great deal SO far. but they carry
an encouraging suggestion and show
that processe. OF readjustment to the
new condition created by the European
war havs been facilitated by various
measures adopted
The Bank OF England resumed business
abroad. paying out for the first time
in almost a century notes OF denomi-
nation less than pounds. Some trad
ing in securities was reported in Lon
don. with consols quoted widely at 10
TO 70. The dispatches reported sub
sidence OF the excitement which prevailed
before tho establishment of the British
moratorium and the three days extra
bank holiday. The weekly statement OF
tho Bank OF England was an extraor-
binary exhibit Reserve holdings were
shown 10 be less than $4,000, 900. an
unprecedentedly low total, with the ro-
serve ratio down to 10 per cent. against
an average of about so per cant for
this season of the year. An expansion
Of 382,50o,o00 in circulation and an In
crease of 500. 200. 900 in loans, with the
gold stock down s57.boo,ooo. were the
further consequences of the run with
which the bank had to contend at the
close OF business last week
The establishment OF working basis
abroad was perfected here in come per
- -, tn, 20
eign exchange. No market was quoted.
but there has been a small growing sup
ply OF grain bills showing that there Is
some export movement despite all the
obstacles of the war risk and other diff
culties. but It can hardly be said that
dealing In exchange has been resumed.
Bills are being taken for collection rather
than by way Of direct purchase.
Release OF the domestic money mako,
from extreme restraint WAS evidenced
In reported transactions In commercial
paper at per cent and In tho reduc-
ton OF the call loan rate 20 per cent.
nv some of the banks which the other
day advanced - 10 per cent. The
Comptrolcrs summary OF the national
bank re,urn for the whole country was
Interesting revealing the banking stu
alton at the mldyear. Compared with
June. 1918, loans had increased s2s7,oOo.-
600. but Individual deposits had increased
S315. 00o. 600. while there was cash gain
OF $4,000 600.
Forecasts OF what to-day's bank state
ment might show in tho form in which II
Is to he issued were futile and estimates
as to the changes In cash were hope lcsslS
at variance. A striking bit OF monetary
news was tho announcement that tho GuR
| geuheim interests had erected an arrange
meut whereby Chile was issuing paper
| money against gold deposited here-sn'
| other token of the way In which economic
| opportunity 10 advance the internatlons
| position OF tho United States has beer
! offered by the war abroad.
Headway was made IN cleaning up out
standing stock Exchange contracts and 1
! is possible that as much as 10 per cent
! Of the trades on the day before the sus
| pension OF business have been settled
| Despite the endeavors OF tho Stock En-
change authorities and OF the banks q
| suppress transactions In securities Their
| seems to be an increasing amount o
cash dealings, and discover OF this ha
| only added 10 the restless desire OF tn
moro volatile portion OF the Wall stree
community TO have the regular marke
reopened. OF this Il can only be salt
| that resurrection OF business will be die
tated by financial requirements and con
dition. and not by specula tive exgencie.
|
Commerce TO promote through the effort
OF q special committee. any measure
which will help keep business going wer
encouraging overnight developments. In
cidentally Il IL worth remarking tina
Dun's figures for the week so far show
decline OF less than . per cent. in IN
lcountry'e bank clearings compared Wit
the corresponding week OF last year.
| A good deal OF banking and busfn-a
ability is engaged In trying to solve tn
problem presented by the distressing pros
pcct before the cotton growers, who's
foreign market Is shut of, and anythin
which the banks can do in prudence
lprevent unnecessary hardship for the col
ton planter deserves support. There car
not however, be too vigorous oppositio
TO some OF the wild schemes which hay
been mooted TO commit the Governmer
10 mad departures OF interference wit
prices.
| All tho cereal markets were strong
advance of the Government crop repor
} which contained reason enough for niue
of the rise that has been going on
wheat, corn and oats, irrespective of II
war. Substantial deterioration In cond
ton during July was generally show
Corn declined TO 748. compared with IS
. at the beginning of July and 1858 c
August a year ago. There was a sevel
fall In spring wheat conditions and on
somewhat less deterioration IN oats.
$ The indicated corn harvest is 1854
900 900 bushels. which is 200. 900, OF
0 bushels above last years actual harves
: and there Is good deal OF satisfactio
n in the wheat situation. The estimate {
winter wheat was raised to $1,000, o.
h bushels and even though the spring whe
o prospect has been cut $1,000, 900 bushe
TO 236. 900, 900 bushels total wheat vie
OF oil 100000 bushels IL much consol
! ton for other deficiencies.