New-York tribune., 1914-11-16
Boon to Banking Seen in
Opening of Big Re
serve System.
WALL ST. REJOICES
WITH COTTON MEN
New Era of Trade May In
clude Deals with South
America.

What 10 IS believed will be 3 new
,n6 PROSPEROUS era in the business and
s,snee Of the country begins to-day
With The opening Of the Federal Re-
.s,ve system. Of which the New York
branch is the largest. At the same
time. after ffteen weeks Of idleness,
unrestricted trading will be resumed
q, the New York and New Orleans
.otton exchanges. which is thought to
he the forerunner Of similar action by
the New York Stock Exchange.
SpessinC r Philadelphia Friday be-
fore the Investment Bankers Assoeia-
ticn Of America, Sir George Paish, Of
London. said that England, whose
fnsneia, affairs were disarrauged by
the wsr, was prepared once more to
resume business in the normal way"
Evidence Of a similar feeling Of op-
t,risr, IS seen in the ruling Of the
committee Of eve Of Stock Exchange
governors and bankers that unre-
stricted trading in municipal and state
bonds NAV be resumed FOR domestic
se.ou-+ This is the first definite step
toward unrestricted trading in listed
securities since the exchange closed
july 81. and there is excellent author
itv Yor the belief that the embargo on
listed railroad and Industrial bonds
will soon be lifted.
MANY Urge Market Action
There are many in Wall Street TO-
fsv who think that the Stock Exchange
should be vide open for trading IN
bonds The success Of the curb market
since Us reopening is cited for proof
OF what can be done when restrictions
are lifted
General relaxation is noted in the
local money market. and only rabid op-
poneuts Of the Federal Reserve System
refuse 10 believe that further relief
will follow the beginning OF that sys-
TINS operations to-day Call money is
lower and so are the rates for COM
mercial paper
A boon % the banking interests OF
he country is the term applied TO the
rev system by one ardent advocate,
whU gives three reasons: Quick mob
iizatior Of reserves during financial
stress. ability 20 make loans more free
ly 20 proper borrowers and the crea-
ton Of an open discount market
ln the cotton industry d~Ilers regard
the opening Of the exchanges with en-
thusiasm, the quotation for member
ships rising immediately. In addition
20 the decision Of the New York and
New Orleans authorities, 10 was learned
that iu Liverpool a movement was un-
Ger way 20 clarity the cotton situation
il England and that there was every
indication OF success.
Apart from Wall Street one Of the
most strk king indications of the return
Of prosperity .s seen in the reports OF
missionary societies. who are usually
t1e first 90 ne hit by financial strin-
-ency. Ia. Presbyterian Home boarS
reports lu increase OF 100000 over 1919
FOR the seven months period ended
November s. The Foreign Board has
net increase Of $4,000. and the
Ne,hoi.s.s report prosperity.
Predicts New Trade Near.
s prosperous era Of trade relations
between the United STATES and the
South American countries is predicted
by Georr r Roberts. who has retired
as director or the mint 10 enter the
New Ior- banking field.
"The European war has hastened the
establishment Of closed trade relations
between t.c United States and South
America, and 7 look for an era of
greater prosperity than ever before IN
those South American countries SAID
Mr. Ror-rt-. "The establishment Of new
hanks is he frst and most important
step -'y ard this development.
"Tte Cr'ted States has accumulated
capital more rapidly in recent years
and the industrial projects have been
ol q greater scale than before, so that
we are now ready to enter this terri
tory with the prospect Of mutual bene-
o. The war has served TO cut off for
mer competition, and we will have that
much more advantage in developing
olg and profitable trade.
81 look % see exchange drawn on
New York boz proportion that will be
greater than ever in the history Of our
relations with South American repub-
les Because wool and hides are on the
free list we will buy more raw mate
rial, and this demand will create an
exchange, by which those countries
can readily Pay for our products.
The United States must take
deeper interest in the development Of
those countries, however, and must
lend them money so that they can
expand their trade"