The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-06
FINANCIAL NEWS
AND COMMENT
Arrangements to Take Care Of
Securities Coming Here
From Abroad.
CALL LOAN RATE Is UP
Feeling That Trade Blockade
VIII BE Lifted Be-
fore Long.
CALL LOAN RATE Is UP

Matters more or less resembling orhi-
nary routine. although presenting some
problematic features. absorbed larger
share or attention In the financial com
munity yesterday. After good deal OF
preliminary comforting in the last few
days the disposition of securities arrlv-
made before the closing of the stock tx
change was settled temporarily just
about as could have been predicted. In
the necessary spirit Of accommodation
which now prevails arrangements were
effected with the banks to make loans on
these securities, which enabled the pur-
chasers to discharge their immediate OBJ
legations. Incidentally It might be mem
toned that the most Informed opinion
regards the aggregate OF securities
brought in on the olympic OF due to ar
rive soon as materially exaggerated and
ms far from approximating the estimates
which have ranged around $40. OOO, 600 at
"A minimum
Partly on account Of the necessity OF
making new loans on collateral security
and partly because OF the more or less
continuous calling OF loans by Canada, a
large total OF call loans was marked up
TO the rate OF s per cent. Criticism was
heard in the brokerage houses over the
disturbance OF the rate on standing loans,
but the leaders urged several reasons for
their action In addition to those already
given
For one thing Il was said that interior
lenders here had insisted on higher rates.
II was also pointed out that Clearing
House certificates were costing the banks
at various centres from the per cent.
charged here 80 per cent. and above
charged elsewhere. This I'm turn raised
questions as to just how much and how per
= stent a recourse was likely to be had to
Clearing House certificates with emergency
currency becoming available at less expense
FOR a considerable period, There was lltNe
banking support for the Views that the use
Of Clearing House certificates was likely
to be abroTatcd by the employment Of
emergency currency, when IN" clearing
houses have voted acceptable in settle
ineuts between banks.
There was eth another argument ad-
vauccd. and perhaps a more valid one
than any commonly heard, which Is mat
IN times like these credit should be as
pensed at reasonably stin rates In order
TO assure an adequate supply OF y Tor all
deserving borrowers. At the same time
the fact that the marking up OF the call rate
of discontcn, to be heard IN Wall street
/ over the emergency measures.
| Ranking affairs as a whole fetreAted
! further into the background or notice,
| while the blockade of foreign trade and
| the accompanying deadlock or foreign eN
! change with their effects on domestic
| trade, came more prominently into imam
! clal regard. There was no evidence thar
1 the foreign exchange banksrs who have
been considering the peculiar puzzles or
/ their market had yet been able to resolve
| their Individual prepossessiors into the
larger needs Of tho occasion, hut confer
/ crccs ar" going on which VIII doubtless
/ hay" satisfaction" results when the nrst
/ Indispensable requisite of a solution ~ tho
I exchange problem Is furnished IN the pro
/ vision of shipping facilities.
Tho feeling most apparent in relation
/ 50 this IS that I'm the Cours" or very
short while. a week or Z. fortnight, for
/ cisn announcements viii be made abroad
/ that tho sel ~ under naval control OF
ono Rido or tho other and that goods
and commodities may begin 10 move
across tho oceans in vessels belonging 10
the side which IL master OF the seas AS
well 40 IN neutral bottoms. When that
occurs most Of the foreign exchange dith-
culties will disappear as though by magic
In respect to this whole subject emphasis
might Ice laid again on mo fact that
ANXIOUS AS We Alt 10 ItNNVIN WV 4A'NNA
national money market TO n degree OF
activity which will relieve our foreign
trade Of It's paralysis. there Is and vii
be even greater Anxiety in other countries
which need our supplies. and that effort'
ar" making ON their part TO end the trade
and monetary blockade.
Possibly the conclusions Just noted wer'
| AS much as anything else the outcome o
1 Great Britaus formal entrance into tn
| t,uropean conflict In financial circle
| here Il was held impossible to make tn
/ war any more dreadful by increasin,
| the allies ranged on one side ON Tia
j contrary. Il was thought that develop
: menta Of the sort enhanced the pros
pects for an early termination Of IN
| / war Financially Great Britain sesme
| to have been IN the way OF recoverin
| its equilibrium by ending the stage q
doubt. and tho promise OF Lloyd Geors
| that the Bank OF England's discount rat
would b. promptly lowered from 10 pc
| cent. To 8 per cent. with official intma
] ttors that the Government saw no neces
. sitv of "A suspension OF specie payment
| yas Of much Importance as suggestin
that the financial effects OF shock wer
being overcome abroad es they have bee
: passed here.
to Canada and for transfer 10 New or
q leans and 10 san Francisco were made
n but there IL no longer concern over IN
{ possible depletion OF the gold supplies
a The further closing Of private banks wa
J, commented upon as very obviously In Al
o tIclpation of what would probably hav
q had TO take place before long under not
e NAL conditions owing to the inabillt
p, OF many of the institutions with lare
k immigrant patronage 20 comply with N
n terms Of the new state law. Some s3a
}. 900. 900 of emergency currency has bee
Il taken out by tho local banks but ther
n is still no indication that much or an
OF this IL finding its way into clrculi
{ tlon.
s The wheat market Huctuated vo,entl
x but wheat, corn and oats all lnlshe
d strong not only on the crop news IN
more obviously on expectations that h.
% fore long shipping Will begin 10 NOV
" The American Tobacco Company n
VI rounced tho declaration 81 n per Ger
f. dividend which was made payable
u per cent one year scrip because
e. the unsettlem NJ Of conditions on u
a ropes account, but tho American Smel
- ing and Refining Company declared Il
regular dividends on It's common and pr
ferred shares payable in the usual wa
Steel products have heen advanced ~
ton IN all principal lines apparently
CONSEQUENCE OF the removal of depr SSH
irNucuCes hitherto rCpreScnted by the 10