New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-22

means. At prevailing prices our seou-
rites owned abroad seemed better
worth holding than selling. The DIFF
ference arising from lowered exchange
On London here gave British owners an
advantage Of about III per cent on
sales in this market. followed b. re
mittance 60 London. Eventually. II IS
now generally accepted. British treas
urv warrants or long term government
bonds will be sold here. The oblec
tions OF our federal authorities agslhs'
such ala FOR financing the war have i'
is understood, been modified.
Foreign Commerce Important.
To preserve our own share OF pros,
peritv and 70 assist in the industrial
revival after the war our foreign trade
must be encouraged. Il IS now more
fullv understood that. so far as neu-
traIitv Goes, Il makes little difference
whether We accept payment for what
We sell 10 Europe in our STOCKS ana
bonds IN gold, in credits granted or IN
securities Of foreign governments pur-
chased Our shipments abroad com
.inuo heavily 20 outweigh imports
nc favorable trade balance OF the
eecoDd week OF February, while not
quite 30 large as for that preceolhe'
reached over S3O,000,OO0 on preliminary
estimates. .,,,
Wheat and other foodstufs are still
be;no sent 70 Europe In immense vol
une. last weeks exports OF wheat ana
49, reaching 100000 bushels,
egajust about 5000, 900 last wear. Cot
ton ,s moving out with a freedom that
IL rapidly making UP for the reduced
evnor.s Of earlier in the season. ana
bosvv war orders are still being placed
here The nature Of the supplies pur-
chased for the armies IN the field patv-
rally shows some change with the sp-
uroechinR end Of winter, but as vet
there Is no sign Of the predicted SLACK
ening Of such European demand.
All this is, Of course, based on the
seas being kept open 20 our trade
The possibility that Germany might
actually succeed in making effective
her proposed submarine blockade OF
Great Britain and greatly reduce our
shipments PLAYED some part In the re-
covery Of foreign exchange rates in the
latter part Of the week. Demand ster-
ling. however. closed under ADJ.
Discount Rates Hero Lowered.
Tn. money market was a shade Arm
~ as,'r IN the week, although call
loans were again renewed each day al
. nor cent. Fixed date funds on col
lateral were not availed OF 70 any
important extent except for the longer
naturities The local Federal Reserve
Rank reduced It's discount rate on com
roercial paper maturing in over thirty
DAYS from an 20 4 per cent, but there
was no special inducement for mem
her Institutions IN this city 70 use the
facilities offered while funds contln-
ued in such great abundance and rates
for mercantile paper we're so low.
Following regulations issued for re-
discount Of bank scceptances, the red
eral Reserve Board approved maximum
and minimum rates Of and Az per
cent for regional banks, and such pa
ner should form an important part OF
the resources Of these institutions. In
this district discounts were reduced
during the week.
In London discount rates hardened
as the Bank Of England lost gold. The
banks return, issued on thursday
showed bullion holdings reduced over
$1,000 900. The Bank Of Germany on
the same day reported an addition or
20, 900. 600 marks to its gold, while the
Bank OF France in about two weeks,
increased It's gold in hand by some
400. 900 francs. The London stock market
according 20 cable reports, again did
only a small business, as no reduc-
ton Of minimums has yet been author
lied. On the Paris Bourse 8 per cent
rentes continued their declines.
Local Clearing House institutions
in their report Of conditions at the
end of the week showed loans no
longer increasing. Instead, they were
a little under the total Of the week
before, and deposit liabilities we're re-
duced. Surplus, however, was around
S2,5OO,0OO below that of the proceed
ing week. as result Of lowered re-
serves.
The Federal Reserve Boards regu-
lstions for national banks desiring to
do a trust business are apparently
without effect here The new banking
law Of this state provides that such
business can be done only by financial
institutions that already held such
powers when the law was passed or
are incorporated for the purpose.
Plans are being made so that the
regional banks can extend service Of
check collecting for members, but It
is believed this will be taken up grad
uallv, so as not TO interfere unduly
with existing practices