The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-17
FINANCIAL NEWS
AND COMMENT
Less Tension Reported I'm
Money Conditions Here
and Abroad.
EXCHANGE RATES EASIER
Great Export Decline Shown
in the August Trade
Statement.

Money conditions seem 20 be shaping
very gradually toward an easier posi-
ton which Will help to accommodate a
better movement Of general business than
is now possible and tend to relieve the
strain caused by the immobility OF Sc
curties upon which loans cannot be- me-
gutiated or are locked up In borrowings
1t Is difficult to point to definite factors
of much Importance that offer any as
sur1nce OF monetary relaxation. Indeed
with increasing resort had TO emergency
currency issues. while the volume of clear
Ing house certificates outstanding Is prob
ably growing rather than diminishing,
there are suggestions that the loan mar
kct is not likely to loosen up materially
for some time to come. Nevertheless day
to day events do show some progress
toward money market improvement. both
at homo and abroad. with occurrences
which encourage expectations that i'm.
pTovement Will grow more pronounced.
Very much respecting our own pros
pect depends on the Roadway which Is
made in the London money market and
i would appear that bctterment must
bo cons siderable to permit SO much talk
~ is going on about undertakings for
an early resumption OF regular business
IN the security markets, without which
IL Is improbable that there can be any
stock Exchange opening here. A largr
subscription was reported for the third
series of British treasury bills which
the war has made necessary. The Bank
OF England set aside another substantial
amount or gold to redeem treasury notes
ana decision was reached to make an
attempt at revival Of general business
foreign a ~ Cd 4
OF these are tokens Of hopeful char
acter from the Wall Street point Of view
" tho small beginnings that have been
made here In accepting bills work out 10
u" early establishment o. real discount
market there IS no reason why an Amerl-
can bill OF exchange should not be added
20 the worlds facilities for q, nducting
business 10y credit instruments and thus
mako a very import NJ contribution
toward tho relief OF the present interna-
tlonal tension. Meanwhile a reader dis
position 90 buy commercial paper was re.
ported, although concrete evidence of
contracting rates did not visibly demon
sirlt" tie Improvement ascribed In the
M ney market situation.
There was. however further cas-
Ing or OF sterling exchange. with demand
as low AZ i97a.. cables being half n cent
higher The steady supply OF grain bills
ana other trade rcmlttanccs' exercise an
easing influence in exchange. but pre-
sumably the greatest effect was produced
by the practical completion OF the initial
payment Oh New York city's obligations
maturing abroad. A prompt response wa.
IN de by the subscribing banks TO the call
Ter the frs; lnstalment on the loan, and
about S2,'0O,0oO more E,ll was taken
fr M the Sub-Treasury for shipment TO
Ottawa. II was understood at the be-
ginning OF the week that gold transfers
on the New York city loan account would
aggregate about $4,000 200 on the pres.
ent movement. Arrangements for the pub
lie Offering Of the 500. 000. 900 OF New
York city notes involved in this banking
transaction were completed. and ii was
said that the public would be able to OBJ
tain them around par. with all signs
faroring very gratifying reception both
AZ home and abroad
The financial community did not believe
that the seizure OF the Mexican National
Railways by the ConstitutionaMst Govern
ment would lead to any disturbing com
plicat!ons and was disposed TO regard
hopefully the general attitude OF the Ad-
minstrat!on at Washington. The wis
dom Of Imposing direct tax burdens OH
financial institutions at this time did not
commend itself instantly. but satisfaction
was felt over the abandonment OF the
preposterous freight tax scheme Tho
submission OF the railroads formal plea
to the Interstate Commerce Commission
for roOpcning OF the Eastern rate case
unquestionaby offers an opportunity for
the Government 10 go further and to
demonstrate a constructive intention to-
ward corporate enterprise in this coun-
try which can be OF immense value In
adjusting business and financial affairs
here 10 the circumstances OF the war
How very complicated the money
market problems have become was quite
q t..I
try's general foreign trade statement for
August Exports suffered far more dis
astrously than imports. and we were ac-
tually engaged In pil!ng up a debit bal
ance on trade account last month when
we we're being pressed for payment Of
balances already accrued. The August
shrnkage OF Imports was only about
sS,2j4.OOO compared with the correspond
ing month last year. while exports fell
$1,000 900 The curtailment of exports
wac more than a third OF the total fall
ing of OF about s2040O0.000 In the first
eight months Of the calendar year.
As a result OF the change in trade con-
ditons there was an import balance OF
more than Sls,000,00O last month. with
an export balance OF only a little moro
than s4l.0O0.0O0 for eight months,
Henceforth the trade statement should
make n better appearance Tho de-
cline In imports must inevitably be-
come greater, While exports eNlnce a
tendency toward more or less complete
recovery. Current weekly, export figures
for the port OF New York show that the
outward movement has become almost
normal.
The Reading and the Lehigh Valley
railroads declared their regular quarterly
dividends The Iron Age in It's weekly
review said that the frat half OF Septem-
her had been the quietest period in the
iron and steel market so far this year
The recovery OF prices in the grain
markets vas carried further. the MAY
wheat option closing at an advance oS
about four cents bushel for the day.
Live stock Market.