The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-11-27
BUSINESS BEGINS
To Oct BETTER
Henry clews & Co., New York
Bankers, Look For Substantial
Improvement In Conditions


Henry clews & Co., the New York
bankers in their weekly financif review
for the week ending November IA sec
much Of an encouraging nature IN the
future business outlook Of this country,
especially in the reopening Of the stock
exchanges. Following is portion Of
tho review by Henry ClewG
NEW YORK, November 14.-Weekl
by week important changes for the bet
ter are taking place in The financial po-I
sition. These are reflected chiefly in
easier money, break in sterling ex
change and Improvement in the credit
outlook BY far the most important
current event Is the opening Of the Fed
efal reserve banks on Monday next. Of
course, these institutions win not be in
fun operation probably for several
weeks 10 como and some temporary IN
conveniences may be caused by the
transition from one banking system TO,
another. These however win be trifing
in comparison with tho advantages Of
the new system. II is estimated that,
as a result Of lowering reserve require
ments from 25 per cent to IS per cent,
including States banks and trust COM
panies, the increase in the amount Of
loanahle funds Of the New York clear.
ing house banks win be about $16O,0OO,.
600; and possibly S300,OO0,000 in the
entire United States.
/ Increase VIII Be Large
In all probability there win be a fur
ther retirement Of clearing house GER
tiieates and emergency currency after
the new system becomes effective SO that
the net increase in funds will not reach
the figures Just mentioned Neverthe.
less. the increase will be large enough
to insure period of easy money for
some time 10 come; because the require.
ments Of legitimate business are very
small owing TO the continued contrac.
tion Of trade and industry. Clearing
house returns continue about 25 per
cent below last year. The requirements
for financing the crops have about
reached their maximum, and heneeforth
the demands from these sources will
diminish, especially as our exports of
food products andcotton are very lib
eral.
Confidence Improving
Another proof Of reyiying confidence
is the cancellation by the savings banks
of the agreement to insist upon the six
ty days clause in regard to savings,
which Is now left to the Judgment Of
jndipjdual banks in this district. Stin
another important development was the
withdrawal of restrictions on trading in
unlisted securities The New York
Stock Exchange is now earnestly at
work endeayoring to effect IN early re-
opening with encouraging prospects Of
success Some fear Of foreign lquida-
ton still remains. The selling pressure,
however has considerably diminished
during the last few weeks, and would,
IL the Exchange were opened, probably
he confined to those in positive need.
On the other hand the DISPOSITION of
the buying power has sensibly expand
I'd. The partial restoration of conf
dnnee hrs brought in sight many pos
sible buyers who would eagerly take
our securities at bargain prices. As
to how much foreign selling would real.
w occur in this market. II is impossible
to determine 1t would of course be
confined to comparatively few interna-
tional stocks. The holdings of Ameri.
cans abroad, II is well understood, have
largely diminished. At the same time
there are large amounts of securities
owned abroad but held upon this side
which might como out under forced
sale. fst 1900
BUYERS Much In Evidence
The iniportant fact remains, however
that during the last month there has
been less disposition TO sell and
greater inclination TO buy, which has
not been able TO make ltseit ien ne
cause Of the closing Of the Exchange.
During the htter period there have
been no important new issues OF securi
tics. In spite OF dull business, savings
hayd been acenmulatedi and IN al prop,
ability there Is an unusual amount o.
idle money awaiting investment, anu
depending entirely upon snihciept re,
turn of confidence. our more iaVora 20
development Is the early opening OF ine
New York Cotton Exchange, ana tho
adoption Of q satisfactory seheme TOT
financing tho new crop: Inc explra.in1h
OF the British moratorium almost WIN
ont notice was also signincant event ein.