The Washington herald., 1914-09-10
ADVOCATE
|. Opening MARKET
War, However, Does Not AL
ter Situation Existing on
Closing Day.
SURPLUS COTTON CROP
Possibility of County's Spindles Car
ing for 0yerAow-Hat
Supply Short.
SURPLUS COTTON CROP

Great pressure Is being brought to bear
to reopen the New York Stock Exchange
in the near future. Sffted down the
opening depends almost entirely upon the
progress of the war. The exchange was
closed because Europe was dumping
stocks on the only market available.
New York. This condition would exist
today even in greater measure.
However. the Financial Chronicle
argues that to remain closed only post
pones the evil day.
1t says: The situation growing out
Of the suspension of business on the
New York Stock Exchange Is intolerable,
and cannot be continued indefinitely. The
chief usefulness Of the exchange lies in
its being q measure OF security values.
Values fixed at the exchange are de-
terminative Of the values Of other securi-
ties not on any stock exchange.
Let no one. delude himself with the
idea that stiIl lower prices may not be in
prospect The longer the reopening Is
delayed the greater will be the volume
Of sales that will have to be taken care
Of Ten million dollars worth OF mu-
nicipal bonds were offered during August
without finding takers.
'Foreign holdings Of American securi-
ties that remain to be liquidated are the
resumption of business Why could not a
banking syndicate be formed calling for
not less than SO0. .0O0. 900 to take them
over? This syndicate would not engage
TO sell on the exchange at all. but would
place securities taken over privately, with
large capitalists who know values and
would appreciate the fact that they were
getting bargains. Sellers would realize
far above what they would get II securi-
H.. l.
tumbling market Foreign houses could
probably ascertain the aggregate amount
OF holdings hanging over the market II
the syndicate included all leading invest
ment banking houses. with their enor-
nous clientele. there would be no DIM
Guilty I'M placing at once the whole block
With the danger of huge foreign liquida-
uon removed. our stock exchange could
reopen without fear OF being swamped.
In the interest OF the public veal It
y absolutely necessary that the exchange
should be reopened with the least pos
sible delay"
The Cotton Situation.
Can the United States mills spin 200
600 bales Of cotton between September
l. 1914, and August 81. 1915? II so, in the
judgment Of competent authorities, there
Is no need Of fearing the capacity Of our
domestic resources to take care OF the
incoming crop OF 100000 bales.
How can the other 5000 900 bales be dis
posed Of. in the absence # the usual ex-
port demand? There will be an export
demand Of contracted proportions As
sumo that Japan will take ZOO 600 bales
out Of this crop, a very high estimate.
leaving 100000 bales to be disposed Of in
the other foreign markets. Great Britain
will require a considerable supply, al
though not so large a quantity as she
took last year. when there were exported
to that market 3.5js.ooO bales. Probably
2,5ooooo bales are all that could be dis
posed Of as Britain's part under the cir
cumstances That would leave 100000
bales to clear up the supply. II Italy
took 5oO.0OO bales there remain only
!, OOOOo bales to be taken care OF under
warehouse certificates plans, and held off
the market for future disposition. This
assumes that exports of 5000 900 bales OF
cotton will occur during the coming year,
but this is a high figure from the pres
ent outlook.
How the crop is ordinarily disposed
Of its shown in the following table: