The sun., 1916-09-04
Bank Statement Eneo.ragi.s.

were remarkably small. and consequent
~ the fact that the ratio OF excess re-
serve TO reserve requirements declined
from 227 per cent. TO III per cent. was
no; In IN sense disturbing. The actual
loss In excess reserve was approximate
Is s29.500. 900.
II nay be the hex bank statement
will show greater changes. That will
depend upon what disposition Is made
posed the money will remain on deposit
In New York banks. and vii! be checked
out merely In payment for supplies
The only visible effect of the recent
British financing upon foreign exchange
has been n stiYening OF sterling rates. Il
probably would be safe to say that the
Improvement in tone was not due 50
much to a change in the actual cond!-
tons surrounding the sterling market as
TO removal Of the professional pressure
which was being brought 10 bear not
long ago. That pressure was not I'm
por.ant. and At the time foreign exchange
experts as a rule did not believe there
was any real reason for a decline.
Similarly there appears no warrant
for expecting a change for worse In the
near future. Sight bills on London have
been almost stationary In price for
months. and unless there IL some unfore-
seen development In the financial world
re next movement probably will be up-
ward rather han downward. II vas APP
proximately ono year ago that the low
record for sterling was established. The
price soon recovered 10 s47s and then
settled to approximately the present
level.
Ono reason for belief that II ser.
ling rates move az all they will move up
ward IL that additional British financing
IN his country II expected. No an
nouncement has been made as TO the ac-
,ual amount, OF subscriptions TO the $3.50
900. 900 note Offering. but II Is known h
Of the syndicate experienced
no difficulty in placing the issue.
Moro Leans Ahead.
No one ,mag!nes tina. the British Gov
ernment exhausted It's available supply
OF American securities when Il put up
the collateral stocks and bonds as See
curity for the hrst loan. and because the
initial offering Of a collateral loan was
highly successful the interests involved
naturally will continue tho financing pro-
gramme as soon as consistently possible.
I, was said on Saturday no financing
Of Importance. either domestic or foreign.
would b. attempted unless. as was ante
Ipated. the railway wage dispute should
te settled or definitely postponed. SO con-
fdent were the members OF the hnancia'
community that the eight hour bill would
be passed by the Senate on schedule
time that large numbers Of them did not
visit their Offices on Saturday. In TACT
20 fudge by their actions n would not
have supposed a countrywide strike had
been called for this morning.
Brokers reported tho receipt OF com
parat.yely few conditional selling orders
for the opening Of business tomorrow
morning, but many of them had on thei'
books substantial scale buying orders
which had been placed when the outlook
was mos, uncertain and had been lef'
standing.
Bankers and brokers who were w!!l'nf
20 express opinions n to the merits o.
the bill which was introduced into Con
gress at tho instance of President Wi
son were almost unanimous in condemn
Ing 4. but apparently the majority be
l,eved the railroads would be successful
in attacking the measure in the courts
A few expressed belief that tho e!gh
hour requirement. II enacted into law
would not become effective even for Z
shor. time. They asserted some mean
would be found to restrain Its enforce
ment, pending decision as TO It's const!
tut,onality, and hat by tho time thi'
point could be settled. tho Republican
would be in control Of the House AM
Senate, and would substitute for tn
emergency measure something of con
s,ructive character which would !mprov'
railroad conditions rather than the 70
verse