Evening star., 1914-08-09
UNITE TO UNLOCK
WHEELSOF TRADE
World Of Finance and Com
merce and the U. S. Gov
eminent Combine.
PROBLEMS FOR WHICH
NO PRECEDENTS EXIST
Alarm Over War in Europe Followed
by Confdence-Conditions
Rated Satisfactory.

NEW YORK, August S-The financial
community was occupied all week devils
ing methods to meet the emergency of
the war. The rapid march of events did
not alter. but rather intensified, the
problem as presented last week-a prob
lem for which no precedent exists. Salts
faction with progress made is proved by
the calmness and confidence manifest in
the financial world, in contrast with the
alarm at the weeks opening. The world
Of finance, commerce and government CO.
operated in the task of opening the
channels of credit and commercial ex-
changes and unlocking the wheels Of
trade.
Agreement on the necessity of checking
the raid on American gold supplies fol-
lowed the perception that all Europe
was pressing for immediate cash pay
ments for credits and sales at the same
time that universal moratorium went
into effect on debts and purchases. The
first resort was to clearing house certifi-
icates and the second to emergency cur
rency under the new federal law.
Meets an Emergency.
Deposit by the Bank Of France of cash
with the Paris branch of J. P. Morgan
& Co. opened a way for establish
ment of credits in New York for pay
ments against exports OF foodstuffs
Transfer of ships to American registry
by amendment of the law Is relied on to
relieve the embargo on exports through
risks of capture. Until that embargo is
raised means are lacking for meeting
the enormous obligations from calling
home Of loans placed here and for ship
ping to this country of American Sc
cur1ties for sale. A decisive sea fight
also would free the movement of mer-
chant shipping.
Except the United States every country
possessing great capital is involved thus
leaving no reserve supply Of capital for
national loans. In spite of the embargo
on foreign trade the volume of the week s
bank exchanges indicated that internal
commerce was well sustained. Beyond
rived from looking to future benefits from
foreign trade, where the belligerents seek
supplies in this country.
Iron and Steel Trade.
War in Europe deranged business in the
steel trade this week. Domestic industry
was depressed and foreign commerce
paralyzed. temporarily. Some improve
ment in the outlook for export, however,
came at the end of the week, with a re-
organized exchange market and the pros
pect that more merchant vessels will ny
the American flag.
Many obstacles are to be overcome. In
the meantime the steady output of steel
ingots is threatened by an inadequate
supply of ferro-alloys. more especially of
ferro-manganese. for which this country
is largely dependent upon Europe This
fact. together with the suspension of i'm
ports of steel products, caused another
advance of 81 per ton in prices Of steel
bars. plates and shapes, and so cents per
ton in semi-fnished lines
Stringent money markets caused a de-
crease In demand from domestic manu-
facturers, except on the Pacific coast,
where the foreign source of supply Is cut
off. causing more orders to come to home
mills at higher prices.
Manufacturers Hard H.t.
Machinery and agricultural implement
manufacturers were hit hard by cancel
lations or suspensions of shipments on
foreign orders. The same is true of
some rolled steel products, including tin
plate and steel pipe