New-York tribune., 1914-11-16
REVIEW OF THE
Week IN FINANCE
Confidence Grows on Eve
of Federal Reserve
Bank Opening.
FIELD FOR FREE
TRADING ENLARGED
Sterling Exchange at Normal
Ieyels-Money Rates Lower
Trade Still Dull.

a, the date FOR the opening Of the
40 Federal Reserve banks approached
-oss.sry conditions became easier
,.s, week and foreign exchange rates
ssnk 70 normal levels. Unlisted stocks,
j. which European holdings are slight
~sre released from restrictions, and
.ts curb market resumed operations
,rse,icslly IS before the war. City
- municipal bonds were freed from
,,,,ervision except In cases OF delayed
sstve-v. which Disseminated against
.s.nr;tjes In Europe. In London ar
s..rsnents were made for the long
.sstroped Stock Exchange settlement,
5Sge here conferences with banking
'-tlorities we're reported as reaching
..,s results for enabling our exchange
- o,en when London had paved the
50 Preparation for deposit Of re-
,.-vss Of member banks in the new
.s,;onal institutions caused little
.-srsfer of out-of-town deposits from
hanks IN this city. 80.
VLue the Federal Reserve act will
1. IN effect to-day the regional banks
-, some time viii naturally be limited
:, 70 the business they transact.
Clearing domestic checks viii be taken
N gradually, so as not 10 disturb
,--seessarily prevailing customs.
REGIONAL banks are recommended TO
sYsAsnre local checks through the
.ssrinc houses :u the cities In which
.Isv are placed. Mercantile paper eli
~ Tor retiscount has not been lin
- bevord the broad lines laid down
(. ,ba law itself. No discrimination
-, vet been made between paper bear
80 names Of buyer and seller and the
.'sgis name note more generally in use,
5,. N is face has nothing 70 show
Ss nprpose 20 which its proceeds are
20 be put
Notes Available for Rediscount.
4. the start member banks are to
i..s-rrire what notes, drafts or bills of
.,,bsrce offered for rediScount arise
.,.r, commercial transactions in COM
-,s.;es. These obviously must not
!. for the purpose Of supplying addl'
80 capi+sl. for speculation or for
-srs investment. So, arising from
.,-rerciel transactions. they Will be
',.eIv 10 be paid promptly at maturity
.be t,srs-ctions are carried on
+-orrb resale Of the commodities on
49, thew are based. The volume OF
n,h notes increases and decreases
~ the rise and ebb OF the country 8
business activity, and the FederaI ne
,.-ve currency received in return by
is rs6;seounting banks should accom-
-ajste itself 70 the varying needs OF
usde ,,,.tl;..Lo,
;.,.-esf rates at the end of the war and
b. inheritance Of making our securi'
es attractive 20 European investors
.is hoard warns against too great
,ssxstion Of money rates. Here at the
e,8 Of the week call loans were made
st 81 per cent and time loans on Stocb
Exchange collateral we're placed as low
ass Accommodation was more freely
offered as the banks absorbed the hoat-
ing supply Of the more desirable short
tern corporation obligations.
Commercial paper has been more
freely purchased by the banks since
The date was set for opening OF the
new reserve system. With the Stoct
Lxehange closed call loans have cease G
70 be quick asset, and notes hKely &c
De aNdlldD4e LOT Et44cCOultS aAt b"+ w.
lsrly desirable for investment OF sur,
plus funds. This has resulted in liberia
buying and prime paper passed as low
a. 81 per cent last week.
Ending British Moratorium.
As measured by the Bank Of Eng
lands return, published on Thursday
the ending Of the moratorium IN Grea
Britain came with little disturbance
Loans 10 the money market were q
triae enlarged, banks withdrew some
100000 Of their idle funds from de-
posit and the reserve was reduced by
less than one-tenth of l per cent
Cold holdings. instead of increasing
were about fl800OO lower. According
70 q recent number Of "The London
S.siist," the Bank Of England has lost
over $1,000 900 10 the British public
since the war began. Though this is 8
trifing amount in comparison with the
great sums placed to the banks credit
IN Canada and South Africa, it make:
more remarkable the reports from Ger
many Of the wonderful gains of the
Rsiehsbank from domestic transactions
Clearing House institutions in this