The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-10
FINANCIAL NEWS
AND COMMENT
Important Question Raised by
White House Railroad
Conference.
PROBLEM OF THE MARKETS
Tpturn in Foreign Exchange.
With Sterling Cables
Quoted at 81.
PROBLEM OF THE MARKETS

Nothing IN the European developments
yesterday made any contribution to the
solution OF the problems with which ali
domestic efforts are Increasingly engaged
on account OF the war. The war news
itself continued to he Of a kind which
emphasized the element of uncertainty
In all present plans for the restoration OF
those principal international financial and
commercial activities on which the pro-
gressive restoration Of domestic trade and
values TO something like the normal must
necessarily depend at the present time.
London advices agreed that money mar
ket conditions there were characterized
by increasing ease and there was even
talk OF a reduced bank rate. but these
circumstances must be chiefly a measure
Of the artlfices resorted TO to relieve credit
strain and gauge also of the British
trade and industrial contraction. They
serve to promote more business in the
outside market for securities which has
been established in London and there were
Indications Of hrisker dealings in the
New street market for stocks here around
the prices at the close of the Stock En-
change on July 80.
The reasons for this activity we're. how
ever different from those alleged In Lon
don. An incentive to trade in stocks
seems to have been furnished by the fur
Their marking up OF lending rates on COL
lateral security. process which could
not fail TO have some effect In disturbing
Wall Street commitments ami stimulating
endeavors TO lquefy positions in stocks.
To what extent II at all outside market
proceedings may encourage endeavors
to contrive way TO reopen the
regular security markets is question.
At the same time ii IL OBVIOUS that an
approach to the consideration OF this
undertaking was made by the conference
at Washington yesterday between Presi-
dent Wilson and representatives OF lead
ing railroads. II lis difficult 10 see how
the troublesome problem OF railroad
finanre can be satisfactorily solved with
out regard 10 the part which the secur-
tiles market normally plays in the in
vestment OF capital. and in all respects a
subject OF tremendous Importance has
been raised by the White House con-
ference on the railroad situation.
The conditions of tine railroads to-day
In the difficult juncture which the war
has created for them involving not only
the matter % adequate railroad income
but OF provision for capital obligations
maturing abroad as we'll as at home
and For taking care of the securities
which Europe wishes to return TO us,
constitute an imper itive demand for help
full government 4 action with Federal en-
deavor supplemented by state support
to the structure Of railroad values. II
Is worth noting that the New York Cen
trial directors declared the regular quar-
terly dividend and that some other regu-
lar dividend declarations were made by a
variety of corporations, but the managers
of corporate AFFAIR." are nowadays looking
further ahead than the very near future.
and their concern is with the preservation
OF earning power in the months to come.
Satisfaction was felt over tho an
nounced opposition OF President Wilson
tn an increase OF income taxation as n
war emergency measure and II Is hoped
that the Administration will Justify re-
lance upon II 10 head on all OF the Wild
mon in Congress who are proposing
vicious experiments with the financial and
commercial organization Il tho country.
There is too much large action which is
going TO he required Of the Government
to permit any time TO he wasted on
the schemes OF inventive trif1ers whose
notions are only REVEALS OF exploded de-
lusions about governmental power TO
print currency and call it money.
Tho weekly market report Of the Iron
Age noted rather sharp falling off in
the domestic steel trade so far this
month for which export ordering did moi
provide an offset, although there has beer
a maintenance OF export inquiry. with III.
United States steel Corporation getting
most OF the business. Sentiment in tn,
industry was described as in general a
little less hopeful than week or so ago
Pig iron production in August Was wei
SUSTAINED the daily rate averaging / zoo
! tons more than in July. There was. he
1 cause OF the primary election holiday "
| Chicago. practically no change in sucf
grain ma rkets az were OMEN. The weekly