Evening star., 1915-06-27
BANKS RESERVES
OF HUGE VOLUME
Attention Directed to the I'M
portance of Financing U. S.
World Commerce.
PROBLEMS OF BUSINESS
ARISE FOR DISCUSSION

Abundant Funds No Indication of
Easy Terms for Capital-Iron
and Steel Review.
NEW YORK, June oS.-The financing
of the war. adjustment of the disordered
facilities of the worlds commerce and
provision for our own capital require
ments are presenting their various
claims with increasing urgency to the
directing authorities of this country's s
swelling resources. The huge volume of
the nations bank surplus reserves, while
stock market speculation remains quiet,
is due to realization of the momentous
| importance of the tasks to be performed
| Details of the problem disclosed
with each weeks events. Gov Strong of
| the federal reserve bank of New York
stresses the importance of financing our
own world commerce, instead of continu-
ing to intrust this to others. The ~ per
| cent interest rate fixed for New York
cty's new loan is lesson that abundant
bank reserves do not imply easy terms
| for fixture of new capital at home.
| The advanced rate on the new British
| loan had the effect of stiffening the Lon
don exchange rate and of inducing re-
newed sales here of American securities
| to provide means to invest in that huge
| fotation. The Rothschlds' loan through
| the Morgan banking house. which has
| enormously been called a government pro-
| ject, but proves to be merely ARA nge
ment between international tinanciers.
makes provision for payment OF COM
mercial obligations of the French govern
ment in this country and transfers high
grade American railway bonds to this
| center Is collateral.
| Amount Left in Doubt.
The elastic character Of this transac-
ton precludes the naming of any exact
amount, but it is not likely to assume the
large proportions recently mentioned in
unofficial quarters. Gold imports con-
tinue to flow in after brief cessation, and
the greater part Of the precious metal
| sent by our bankers to Canada in the
early weeks Of the year Is now returned
| Indefinite prolongation of the war
and of our diplomatic disputes is as
sumed. The coal road decision did not
other trust suits. Crop prospects. May
railroad earnings and reports of trade
expansion kept up favorable impress
| sions.
| StrenGIn IN investment sHdTeS anu
renewed weakness in secondary rail-
| way issues and United States Rubber
furnished the opposing movements OF
| today's brief but fairly animated ses-
sion. Buying of Reading was the most
| impressive feature, transactions in
that stock aggregating about $4,000
| shares. or % per cent OF the whole. at
a maximum gain of points. Except
important developments there was
nothing of a tangible character to ac-
count for Readings rise.
| Other high-grade railway shares
| were in moderate demand at advances
of point or thereabouts, and United
States Steel, Amalgamated Copper and
American Smelling, together with a
few war specialties, also reflected ab
sorption, some of which probably came
from the needs of the short interest.
Setback in Rubber.
! United States Rubber added points
to its recent sharp setback, declining
to 51ia. against 6Sk at the weeks
| opening. on persistent reports that the
dividend Is to be cut II not entirely
passed. at next weeks meeting of the
directors. Missouri Pacific responded
to unofficial statements outlining the
proposed friendly reorganization"
which Is said to involve drastic seal
| ing down of existing issues. by selling
at Z, fraction above it's low price of
| the year. Rock Island at a decline of
| l6. measured the precarious state Of
| that property in relation to Its prob
BILE reha bilitation.
Total sales amounted to 203,0
shares.
| Break in italian Exchange.
| Routine news included another break
in italian exchange, remittances to
| Genoa being quoted at 6.02, which i'm
| plies further impairment of lires, as
against the American dollar. Ex-
changes on London also fell off. like
wise francs but neither was at recent
record quotations
| For the first time since early in May
| local banks failed to show an actual
| cash gain. Reserves contracted s7.147.-
| 900. reducing the excess reserves to
s193. .253, 900, after having stood at
| above 100000. 1000 for a week.
| Bonds were irregular. with more sales
for future" or foreign account. Total
| sales tpar value). s1.22s,o00.
| United States registered 2s declined
4 per cent on call during the week
Iron and Steel.
Satisfactory profits attend the large
| volume of business now being taken by
the steel mills. The bulk of the or
CeES dTc sum Vi loi ciSu oIi6iA i'iei
rectly, If not directly. OF the 26.0Ot
cars and 500 locomotives bought this
month only 5000 cars and SO locomo-
tives are for domestic roads.
Additional heavy railroad equipment
contracts for export are pending
Among the domestic orders placed dur
ing tthe week were 5000 tons rails fol
the Ell Paso and Southwestern, 1,o0(
car center sills for the Northern Pacint
and 10000 kegs Of spikes for the Baltt-
more and Ohio. The Chicago anc
Northwestern Is in the market fol
/ 500 cars, and the Cincinnati, Hamilton
and Dayton for 1000 The New York
Central. Baltimore and Ohio, Lake
Shore and Lehigh and New England
are In the market for various kinds o.
equipment
Several large implement manufac-
turers have closed bar contracts for
shipment to July. 1915, while smaller
companies, including vehicle makers
have covered for the last half OF this
year.
Additional Orders for Steel Rounds.
Additional large orders for steel
rounds were placed at Pittsburgh. and
car builders bought $4,000 tons of bars
plates. shapes and axles at Chicago
Gas and oil companies placed orders
for eightyflve miles of wrought-line
pipe for southern and western ship
ment, while heavy orders for skelp