Daily capital journal. (Salem, Oregon) 1903-1919, 1914-10-14
HENRY oLEW's WEEKLY
FINANCIAL LETTER

New York;, October l0.-Each week
marks further Improvement in the fin.
aucial situation The position of for
oign exchange is daily growing more IA
vorable and foreign transactions,
though still seriously impeded are be-
ing conducted with increasing facility,
The formation Of the $l00,G0OO00 gold
pool mas afforded material relief, and
II offering Il conspicuous example Of
what can be accomplished by mteli.
gent, unsefisll cooperation. rhis war
has brought many surprises; also some
highly gratifying incidents Among
these must be included the work accom-.
plishod by New York bankers toward
meeting the shock Of war thus prevent.
ing disaster aud successfully ndinsting
our commercial affairs to the new sit
uation, When the facts become fully
knowa as TO the ability, courage and un.
selfishness with which the New York
banHcrs faced the most serious financial
crisis in our history there will be less
prejudice throughout the country and
particularly in political circles, against
New York as a financial center. There
are 'crious problems brought on by the
war yet TO be solved but the worst part
on the crisis has been safely passed.
New York has certainly suvcd the ma.
tion from II disastrous panic.
The money market is also working in,
to much easier position. Good Dor.
/ row1rs have less difficulty In finding
accommodation and rates are somewhat
easier, There is also better demant
for commercial paper which demon
strntos improving conditions In IN,
credit market Much or the present de
preston In business is due TO contrac
tion Of credit arising from the war
Needless to say any expansion of credit
upon sound lasis win materially hell
the business situation The assistance
Of the government aud the operation OF
The Aldricl Vrcclund emergency bill
which added nearly t3jO,O0O,O00 to ou
circulation have been important factor
In monetary relief The financial dis
trct is now looking forward engcrly Il
the opening Of the federal rcsorv,
hnnlp, Reliable adyces from Washing
ton 'ry that the . hanRs will 80 read,
lq open on November lst " not earlier
This Is sooner than anticipated, III,
first OF December being prcviosl,
named. In any event the inauguration
Of the new system rs not far distant
aud the houc is not unreasonable thai
the stock Exchange viii be opcnol
about the same time as the Inauguration
Of the new banking system, which b.,
lowering the reserve limit viii prrm
expansion Of about another 5000, O,000,00l
Va bunk currency Of course the dangc
of a flood Of foreign selling Of Amcri
ram securities is tll the chief hin
drance TO opening the New Yor, cx
change. Earnest efforts are being mnd
10 open nj London, the latest proposn
IN this direction being for the BritisI
government 10 guntautce 20 per cen
of outstanding stock Exchange loan
when the moratorium expires, II thi
plan ~ adopted the British banks vii
undoubtedly be- willing to extond thci
stock exchange loans II ia the lon
} situation and not the speculative posi-
- ton which N the main cause OF nnxui,
Tho war continues the domnniin
factor IN business affairs. Present In
/ dications are for lengthy struggle
J Apparently II will resolve itself into
u. question Of endurance aud resource
| As yet there are no signs of cxhaustio
on either side, in snito ~ the tcrrifi
! exertions Of thp past nine weeks Grca
Britain appears TO he Feeling The WI
less than any Of the contestants. ov
o ing 10 her nsular position aud her abb
Icy TO keep the sea practically open I