Evening star., 1916-09-10
KEEN RELIEF FELT
THAT STRIKE IS OFF
Wall Street, However, Expects
the Railroads to Fight
Against Eight-Hour Day.
FEDERAL RESERVE LAW
AMENDMENT IMPORTANT
Legalizing Of Domestic Acceptances
Makes Credit More Elastic.
Business Outlook Cheering.

NEW YORK, September 9.-After the
Labor day interruption the stock mar
ket lost no time in settling down to
business. and as a result of the first
days trading 1,OOO. 900 shares Of stocks
changed hama The market has had
its full of important news and devel
opments to digest. and this accounts
for the rather disorderly or irregular
manner in which some Of the specu-
lative leaders have been conducting
themselves While the railroad shares
have been fairly steady. they have not
been able to pick up the momentum
that has been 80 characteristic of their
Industrial brethren.
There il no doubt but that traders
have experienced a keen sense of re-
lief that the labor troubles which have
so seriously threatened in the railroad
world have not resulted In the COM
plete tie-up of the nations transporta-
ton facilities
Roads Expected to Fight.
Nevertheless. Wall street believes
that the business interests of the coun-
of the method by which this settle
ment" was obtained. and that the rail-
roads will make good use of every
available legal process before finally
surrendering their right to, an i'm
volved in this greatest labor dispute
Should the constitutionality OF the
eight-hour law be successfully at
tackled. no doubt there will be repe-
1 h,.f AAd0 ant
will close the door to at least one
method OF solution.
For the present, however, 1t Is the
conservative view that the probable
cost Of the eight-hour law will not EN- :
| barrass the stronger roads; and should
the freight business continue as at
present. and with the added possibility
of an increase in carrying rates. all
the roads will be able to stand up
under the additional burdens. Mean
the skill and wisdom of the railroad
managers. who will doubtless find ways
Of rearranging schedules SO as to re-
duce expenditures in pivotal points.
Important Banking Provision.
| The recent amendments to the fed.
eral reserve law are highly impor.
tant in their relation to the business
community; but the one which will
most intimately touch local business
practice Is that which legalizes the
domestic acceptance. 1t Is remarkable
that this most convenient and prac.
rical business process, so widely in urt
in Europe. has thus far been prohibited
In this country. Two years ago, wher
the banking laws of the state OF New
York were revised by the van Tuy
commission, the domestic acceptance
was made a part OF the legal banking
practice of the Empire state, and in
demonstrated. BY this process banl
which might be unable TO extend &C
commodation to a local business con
cern could, by a guarantee OF credit
enable 1t TO procure s yoeSs sGsoai'e instead o,
lending its funds. 1t lends It's credit
BY extending this privilege 70 nationa
banks, the credit facilities OF the wnoi'
country will be proporttonateiy eAseha ha,
state. Georgia, has iegaised th'
domestic acceptance for the state bank
ing institutions.
The development OF the mafket sf
far has resulted in the division of ac'
ceptances into two main classes, thu
nrst being bankers acceptances. which
are eligible for rediscount NJ the red.
eral reserve banks or which the iedera
reserve banks, under the regulations o.
the federal reserve board. are per
mitted to purchase in the open marke
at preferential rates: the second class
being bankers acceptances which, no
complying with all the regulations o.
the federal reserve board. are not ell
gible for purchase or rediscount b,
the federal reserve banks. The latter
class of bills will usually move at con
cessions of anywhere from y to Y
per cent in the rate, as compared witt
similar eligible bills. depending upo'
names and maturities. There is als'
q large volume Of trading in othe
ciassei,, such as traie acceptances, etc
The acceptance business. being new
TO the country. has none the less seel
i . remarkable development during tn,
l M af yAar nv fwo And for this thA m na