Efficient

The first two weeks of December this year have seen an unusual number of large financial settlements in the Manhattan money market. Subscribers to the recent French loan have paid the remaining and greatest part of its cash amount of $94,000,000. On Dec. 15, the British Government paid S:68,500,000 in interest and $23,000,000 in amortization on its War debt to the U. S. In both transactions, J. P. Morgan & Co., as fiscal agents for Great Britain and France in this country, were immediately concerned.

In addition, on Dec. 15, two domestic financial settlements occurred--the final payment by U. S. citizens on their 1923 income tax, and payment of S:200,000,000 cash by subscribers to the recently offered 4% U. S. Government loan.

In the days before the Federal Reserve system, the simultaneous occurrence of such a series of large-scale payments would probably have disrupted the money market for the time being, and caused large rate fluctuations. Except for the rise of call money to 4%, the money market showed no ripple from the tremendous transactions being effected through it. Bankers declare that such instances as this prove the efficiency of the Federal Reserve system in peace times.