The Washington herald., 1914-05-31

new banking and currency system pro
vides safeguards which were never al
forded by the provisions of the nationa
bank act. The new facilities will make Il
possible for the banks OF the Unitet
States to compete for various classes o,
foreign business which IL was never pos
sible for them to seek under the old order
Of things.
LeEfslatfon Retards Trade.
Business men are holding back in 9
measure pending action by Congress or
the antitrust bills. under discussion
These bills are not as radical as were the
original proposals. The situation has
been made extremely interesting. how,
ever. by the action taken during the las,
three or four weeks by various CONNER
cal bodies In the United States. which
have passed resolutions asking Congress
to proceed most cautiously so as to no,
impede business or make 1t more difiicul,
for the leaders Of great Industrial enter.
prises to conduct interstate operations
Although the Mexican situation has been
the overshadowing influence, there is nc
doubt but that uncertainty as to anti
trust legislation has had effect also upon
the public mind in checking enterprises
I'D causing investors to defer making
commitments until the difficulties at is
sue were definitely settled. President
Wilson has repeatedly expressed a desire
to build up business and to avoid such
action as would tend to impair conf
dence. More will be heard of these in
tentions later on when the excitement of
the Mexican negotiations are over, and II
Is possible for the administration ofiicials
to give heed to plans which make for
business stability.
Money rates are working little high
er. although the banks have abundant
funds with which to meet the requires
ments OF mercantile borrowers. Abroad.
however. there is a rather urgent INQUIRY
for gold. and It Is evident that within
the next few months large shipments of
the metal will be made from the United
States to Paris, Berlin. and London. y
Is apparent. also, that there will be n
considerable inquiry from st. Petersburg.
as Russia has been an urgent bidder for
the worlds gold supply for some time
past 1nasmuch as the New York bank
surplus Is more than $4,000, 900 above what
1t ordinarily Is at this season Of the year.
there Is little doubt byt that we shall be
able to respond to all these demands
without serious Inconvenience.
1t must be remembered. however, that
dr sooh % tne FEDERAL reserve banks are
in full operation It will be necessary for
the 1000 or 5000 Individual banks afiiliated
with the new system to begin the pro-
cess OF gradually shifting cash reserves
from member banks in the large cities To
the new regional Institutions. Abundant
provision has been made for this change.
and the Indications are that It win be
effected without any violent disturbance
In, the money market. Because of the
gradual change that has taken place to-
ward greater business activity II ia evi-
dent that there will soon be a much
broader demand for money from all
classes Of mercantile borrowers. The sit-
uation Is FULL Of interesting possibilitie.
but there can be little doubt that the
coming changes will make for better
business conditions. which. in turn. WIZ,
mean q broader demand for money
'.As soon as the railroads re-enter III.
market again as large buyers Of rail..
cars. and equipment, there VIII be I'm
portant. loans probably at terms which
win make It possible to place long-term
issues with actual investors"