The Bridgeport evening farmer., 1916-07-18

1s the first advance since August, 1914.
 and was evidently intended as pro-
 tective measure against the possibility
 of higher interest rates and adverse aterlt.ig exchange in New York. Next in importance came the announcement
 of new S100,o00,Ooo French loan on
 . 5 1-2 per cent basis.
 Reserves of the New York banks de-
 clined from over $2O0,000,000 sincs last autumn to about s35,000,000 last
 week.: the lowest total since the new
 banking system was inaugprated. This
 week the banks gained considerably through receipts from the interest, tho Federal Reserve operations and Sub Treasury payments. In view of many prospective demands upon American banking resources the money market
 is an Interesting situation. The usual crepf demands will soon assert them
 selves but will be easily cared for and are of minor importance compared with other imminent demands. War
 has made New York the leading open money market Of the world. It is the
 only market where all nationalities
 can freely come. Hence the belliger- ents, and especially the Allies, have
 done a considerable proportion Of their financing here. The placing of huge munitionr orders in this country Ih has also contributed enormously to the financial prestige of New York. At this center the fiscal arrangements of the Allies were usually made and car-
 ried out; from this port the bulk of American exports were shipped, and in this market the credits. loans and bond issues connected with the gar
 were necessarily made. Hither came
 the immense quantities of gold and se- curities sent to help payments for munitions. ehd here further big tran- sections of the same sort will be con- summated at least as long as the war continues. The expected French loan has already been announced. Another British loan. possibly in the form of
 short term notes, is almost inevitable;
 while Russia, China, Canada and Ar gentina are all knocking at our bank doorb for financial aid which will very likely be rendered. Big demands are evidently pressing upon our banking resources, which are fortunately ann
 pie. Yet the difficulties are sufficient to call for skillful handling on part of our financiers; for our banking
 instttutions have frequently all the loans outstanding upon foreign owned
 American collateral that they desire. !; In the last few weeks about $100.00o,- 000 in American securities and $150,- .00o-000 gold have, been imported in payment for munitions and to assist in keeping down interest rates. which if materially higher would operate ed- { versely upon Sterling Exchange and
 render British operations more costly.
 At this juncture come in the opera
 tions of the United States Treasury which is just now enojying unusually large revenues; it's receipts in June be-
 ing over $1s0.000.000 or $40.000,000
 in excess of last year. During the same month receipts exceeded dis buraements 5by $I9 I9a. 90 0,000--a very satisfactory condition from some points Aof view. Still another >rEw question affecting the money market has been introduced by action of the Treasury in depositing its funds with the Federal Reserve banks, instead of with national banks which were obli- ged to furnish collateral for such de- poats. The Government has recently transferred large sums from the na tioual banks to the Federal Reserve baa1lEs and this has, had considerable tordcp with the shrinkage in reserves at this center. ts
 Our foreign trade has surpassed the most optimistic expectations, the total for the fiscal year ending June being $6 ,o00, ,000,0 ,000.. This is much the larg- est total on record, and must be chief
 ly attributed to the war. Exports
 amounted to $4,345, 100000 and im- ports' 42, I S0.000, leaving ah excess of exports q1 s2.1S5, ,000!000a The princl- pal articles of exports were steel prod
 ucts, SIS millions, nearly treble last
 year; explosives, 473 millions, .en- fold gain; cotton, 370 millions; bread
 stuffs, 314 millions; meats, 270 mill
 lions: coffee, ITO millions; mineral
 oils, 1sS millions; brass 126 millions;
 autos, 123 millions; chemicals, 123 millions, and horses, 73 millions. In imports the principal amounts were
 fibersh 131 millions; copper, 52 mill
 lions; wood manufactures, 51 millions;
 tin, 4S millions. and cotton manufac- lures 42 millions. These are marvel
 ous results, and decided reactions may follow the arrival of peace. Of course the impaired buying power of Europe twill act adversely upon articles of ex- bort; but 1t must be remembered that
 the bulk of our exports are made up
 of necessities such as food products, cotton, petroleum, etc. The demand for many of these products. including four steel manufacturers will actually I1ncrease when reconstruction begins in Europe: and the first and probably 1 only things which the belligerents will Irefuse to buy anywhere will be luxur.
 les. which constitute a very small DOT ton of our exports. Before Europe buy from us with any freedom she
 must be prepared to send us merchan-
 disc instead of securities, or gold which we do not need. and which we
 are simply taking because of the in- 1 lucements they offer.
 Very little real change can be de- i footed in the financial situation, for
 better or for worse. The war drift is : peacewards. the increased intensity of l hostllities hastening the end. Mexi- can affairs have settled down into a 1 state o< quietude. which may be per-
 niansnt if the conciliatory spirit on
 both sides prove sincere and stable.
 The domestic political campaign has
 not yst started, and the real drive wln not begin until both candidates
 have formally announced their accep- LtAnces and policies. General bushes. 1 is fairy active but summer quiet is
 spreading. Some improvement is re- ! por6sd in the crop situation as a re- i aralt If fl,a warm aY,avf1r The onrn oron