Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-10
'NUANCIALSITUATION
AGAIN REFLECTS AN
IMPROVED STRENGTH
Weekend Sees Change for
Better and Outlook Is for
Fall in Money Rates.
Banks Gain Cash.

decided change for the better may
a. ,enorted in the financial situation. 1t
:. r.aected in the progress made in reduc-
- ,be reserve deficit of the New York
i .,.r hanks, which has been accomplished
=, hoth a reduction in loans and gain
IN cash.
Tho deficit Ia below s1s,OoO,OOO, reduce
,o, of s3o,O00,OOO from the maximum
/ ..oobed shortly after the outbreak of the
uor What is encouraging is that the
f,rsnd of the currency is still toward this
..ntre, indicated particularly by the
.ronlum paid in Chicago for New York
s,cbange. The interior has not been hit
= hard as has this locality by the Euro
ssan oataclysm. And the grain crops are
- large and are selling at such high
1,rcss that the Central West and tho
INorthwest are prosperous in spite of the
war handicap.
4 ouiet liquidation of loans Is also be-
Ing accomplished without harm, which
n itself reects generally improving con-
ditlons.
BANKS BUY PAPER.
The New York banks are going into the
market for commercial paper on q larger
scale. One prominent Chicago banker
predicts that by December the money rate
will be down to 5 per cent. 1t is now 6
and s per cent. in the East and to per
cent in the West, principally per cent.
The gain in legal money was effected
by banks last week in spite of shipments
Of SiO,OOO.O0O gold to Canada. Heavy trans
fers have been made to ottawa this week
q OnnrntiDnc M tho S1(O 000 mn gold
exchange pool, so that we have sent al
together to the Dominion nearly s3l OO0,-
O0O of the metal.
II is remarkable, in all the circum-
stances. that the monthly Treasury state
ment should show for October / an in
crease in gold circulation of the United
States of over Sl7,5OO.OOO from Septem-
Der l. Hoarded gold is apparently COM
ing out. OF course, we gain an average
,f about $7O0O,OOO monthly from our
mines as England is now gaining S15,-
100000 month from Africa. There is
no reason why the United States, having
it's financial strength and
lbility, should not be assisted by Lon
'pn in extending credits here to help
5lve the exchange problem
BOND DEMAND is GOOD.
Naturally the relaxation in nor. ;ary
conditions is encouraging the demand for
'aroad bonds of the first class and short
erm corporation notes. Transactions in
he former are under the supervision Of
he Stock Exchange Committee but the
CONCESSIONS from the closing prices OF
uly 80 are said to be only slight. The
ealings in notes are free from super
sion, and these obligations are traded in
n basis of from 515 per cent. to per
ent., according to the class of the docu-
nents.
Locking of the doors against reckless
laughter of sound American stocks both
n London and New York has helped 10
tabilze the situation The action of the
.ondon Stock Exchange in adopting the
nal July 80 prices as the basis for oper-
tions in Yankees was highly appre-
lated here. 1t tells of a spirit of CO.
peration between the large interests on
9th sides of the Atlantic, which promises
'ell for the markets when 1t is decided
2 be safe to reopen the New York and
ondpn Stock Exchanges.
THE COTTON SITUATION.
IN Illustration of the cooperation which
ic banks are using in dealing with all
bases of the existing complicated sttua-
on Is found in the project under con-
dcration for assisting the Southern
anters. Many Southern and Southwest
n banks arc planning to raise lund |
Sl5O,CdO01O to be specially devoted to
ans to planters, so as 10 enable them |
carry that part of the crop which Will |
E unsold because of the reduction in the |
reign demand for raw material.
This fund will be guarded by proper |
mutations and will probably be appor- |
oncd under the approval of the Federal !
eserve Board, pro rata according to the |
lancal strength of the institutions, just |
the contributions toward the 100000 |
u gold exchange fund were arranged. |
his specific cotton credit fund would be |
lhlcIent to take care of 100000 bales at |
cents a pound II will afford an inn |
eusc relief to the South and thereby do |
,od to the whole commercial position.
COTTON NOW Is CHEAP.
Cotton at current prices is undeniably !
leop and the American relief plan,
upled with those adopted to assist the |
syptian fellahs, will tend to bring |
at fact 70 the close attention of such .
,me and foreign spinners as have been |
'ldlng off from purchases under the
ca that they will be able TO secure theic
pply for "A song.
The St. Louis plan, as ii may he styled,
likely to be followed by the banks
.th regard TO every other Industrial po-
ton which is temporarily threatened |
the consequences of the war.