New-York tribune., 1914-11-16

city reported average surplus for the
week under old reserve conditions $S,-
100000 lower, the excess standing at "A
little under $7,500.000. Cash holdings
had decreased around $7,OOO,O0O. prin-
cipally through shipment TO Canada in
payment toward the city's foreign debt
No important demand for reserve
money by outside institutions was evil
dent.
Toward the end of the. week cable
adviees from London were more cheer
full as 20 the results Of the long delayed
Stock Exchange settlement there. Re-
sumption of security trading is needed
by Great Britain 70 aid in permanent
war financing. and il is desired to have
the Stock Exchange there ready TO re-
open at an auspicious moment.
Bond Prices Recovering.
Here recognition by the authorities
of our exchange Of the danger Of for
eign selling, in their discrimination
against delayed deliveries, was recog-
nized as preparation toward much full
er trading. Bonds, which have shown a
good recovery of late, will, il is gen.
orally believed, first be freed of re-
strictions and possibly selected stocks
added. Through the various commit
tees which have been supervising deal
ings in bonds, transactions amounting
TO around $100,000,000 par value have
been completed since the closing of the
Stock Exchange.
The abrupt rise in exchange rates to
around 81 for sterling checks was a
measure of the extent of the financial
upheaval in the early days of the Euro
pean conflict. Last weeks break TO
under 4.S7 indicated how here and
abroad we have succeeded in re2djust-
ing our affairs TO the new state of
things. The abrupt decline was pre-
cipitated by unloading by those who
had accumulated exchange against pay
ment of New York City's foreign debt,
only to find enough had already been
bought by the syndicate managers for
present needs.
Broader influences, however, had
been at work toward bringing the mar
ket down to normal levels. With more
confidence, added to the great accumu-
lation of idle funds in London, there
has been little pressure from the Brit
ish capital for payment from this side.
While discounts there ruled under 3
per cent, il was more profitable TO en-
ploy money in this market at 512 TO s.
All the while we have been steadily
sending abroad more goods than we
have been taking in. Preliminary iig-
ures from the great ports of this coun-
try show exports exceeded imports by
about S2,000,000 day the first week
of November.
Cotton Shipments Light.
To shipments Of foodstuffs are added
supplies purchased for the warning
armies. Cotton still lags. Failure Of
our government to announce at the
start of hostilities that raw cotton, &C
cording TO the provisions of the Decla-
ration of London, was not permitted TO
be made contraband lost precious
weeks. With cotton exchanges re-
opened here and abroad, manufacturers
will now be able to find some standard
price to govern their purchases. They
can contract for future deliveries and
can guard against fluctuations in price
of the staple during manufacture by
selling short the amount OF their hold
ings. Export should increase and the
South be relieved.
The bankers cotton pool may not be
needed. Apart from any question OF
legality, this use of depositors' funds
10 IuanCe COlNOu Coiuti Noo NV q
particularly sound scheme at best.
when bankers Of this city gave it their
consent it was because they felt so
many preposterous suggestions for re-
lief were being put forward that some
fairly sane plan must be supported
They still stand ready to subscribe the
S5O,00O,O0O pledged, in addition to the
large loans individual institutions al
ready have in the South, If the rest
Of the country will do its share.
Business in spots is enllvened by
foreign purchases, but generally is stu
far below normal. The steel trade is
almost at standstill, but greater ease
in money should cause some revival
As has been pointed out, this industry
is particularly dependent on the abll-
itv of large purchasers TO borrow
freely. Mills are now down 70 80 TO
40 per cent of capacity. and IT has been
estimated that only about 90 per cent
Of the usual labor force is being en-
PLAYED throughout the industry,
Ii may be that here and In other I'M
portant trades wages will be generally
maintained at present levels, just as
there was no broad reduction OF wages
during the depression OF seven years
AGO. Still. if our manufacturers are 70
compete permanently in the great
world markets, labor here as in other
countries, must be an adjustable in
stead of a fixed or rising factor IN the
coet of prOductiOn.