New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-12

change trading n large amount Of Euro
moan owned securities, but for the most
of the time sight drafts on London
sold az less than $3.50 in the pound.
Tho French $50 1000, 600 loan n this
country is being steadily absorbed, but
the expected British offering has been
DELAYED. The yield TO the public OF
tho French issue is about BIZ per cent
In London treasury bills are being
placed at under 3is per cent so some
hesitation in paying the higher price
necessary to float British government
obligations in our market IL not TO pe
wondered at.
The Bank of England reduced loans
and made only small loss in gold SO
the drop in reserve proportion was
checked and a slightly higher hguIe
than the week before was reported on
Thursday. The bank and private lnstl-
buttons continued their EFFORTS 10
lessen the supply of loanable FUNDS III
the London market, and discounts were
frmer. That this expedient OF making
money dearer in London than New
York can bring the price OF sterllhg
exchange back to normal is doubtful
In normal times higher rates for use
of funds at one centre mean an III"
mediate automatic flow of capita there
for employment, but this IS time OF
war and movements of money do nov
follow ordinary rules.
Good Promise of Wheat Crop.
Even when we are no longer called
on TO furnish Europe munitions OF war
we will have food to sell. The hrst reai
prophecy on this wears winter wheat
h ra=r
mort Of Wednesday. proved unusually
favorable. While conditions that
caused so great demand for our rec
ord wheat harvests of last year cannot
be expected to be repeated, lowered
stocks of grain and reduced production
i'm the warning countries make Il nee
cssarv that we should again be able 10
furnish the world with this most I'm
portant foodstuiT Condition usually
shows some depreciation during the
winter months, but this wear an actual
Improvement appeared. and with acre
age much greater than last year crop
of around 619,000,000 bushels Is lndl-
Gated. ,O00.000 less than was expected
at the same time in 1914. Last season
favorable weather in the months that
actually make the crop brought the
WELD much above April's promise. Az
worst. II would take a most unusual
elimination Of unfavorable weather 10
make this a poor harvest
In general. business Improvement Is
being heralded from Washington. ana
while not quite up TO what might DC
inferred from such optimistic surveys
still shows gains in many lines. FOR the
last six months merchants have pro-
ceeded cautiously and customers nave
been economical. This has resulted IN
savings that in the aggregate mean
much to the business of TINS country
At last some enlargement OF purchas-
ing for future requirements is oelhG
1eported, and il may be that the rise
in stocks is not too far ahead OF the
hoped for business upturn.
REPORTS from the steel trade are
still unsatisfactory, so far IS domestic
business is concerned. Export orders
however. have been sufficient to allow
mill operation at around 80 per cent
Of capacity. while shipments are under
stood to be a little heavier than new
business. The United States steer
Corporation last month reduced the un-
filled orders on its books by nearly
10000 tons. and an improvement IN OF
ders must be shown II the present ratc
of operations is TO be maintained. rig
iron production last month was greatly
expanded. almost wholly as result OF
stcei mill requirements. torty-iour
more furnaces are in blast than when
the year began. and pig ron produc-
tion is now on the largest scale Tor
twelve months.
Ready for Growth in Acceptances.
The Federal Reserve Board. in oc-
cordance with authority granted by
Congress. has made ruling that BANKS
that so desire may accept drafts grow
ing out Of import or export OF GoooS
up to 100 per cent Of their capital
and surplus. To obtain this privilege
a bank must have an unimpaired sur
Mus Of not less than one-ffth of Its
paid-in capital and make formal appl-
cation to the Reserve Board. IT is
understood that financial institutions
here do not yet feel it necessary to eN-
tend this additional accommodation
Such business is limited al present
by the slownesS Of the growth ln poiu-
larity of the bill or draft on New lorh
as compared with the formerly pre-
eminent bill on London and by The nm
tied market for such acceptances here:
In the final analysis, II was the broad
discount market that grew up IN Lon
don that financed the trade OF me
world So. as the Federal Reserve
Board points out, ii is essential 10 out
financial development that banks and
other investors should make liberal
use Of this liquid Investment as a SUP.
stitute for the ordinary call loan based
ON collateral.