The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-17
FINANCIAL NEWS
AND COMMENT
Federal Reserve Banks Open
and Cotton Exchange
Resumes.
PRICES OF STOCKS FIRM

ra.,, ,,,,,,,,, A.. ,..,.. =. ~.
e nv "'O" v, ''
reue'di reserve banking system ana the
resumption OF trading on the New York
and New Orleans cotton exchanges, was
accurately Indicated nv the cours. of
,uo,oa ,.a,u.. ,or ..o,,r,,to. r,.r. ,,a.
~, '''.' We"
soou ueai OF business ACTIVITY III .the
Broad street curb market, which was re-
opened formally, although the actual re-
sumption began last week Securitie,
it,,o, -, a.. -. vi. c.. ,,.,,
's'e" vi 'no ->e" io'h o'ooN r'Aohahse
sho"eu ris'hg streheth IN tho various
quarters where they are dealt in VITA or
without Official sanction and supervision
In the irrey,,lar s,ra., maria, for us,aa
H.. -. ,.asl.. -. -. =.
''.'o 'e"N"s '''u.s "e'e duo.eu a'
s"sn'ly hisher prices imam the Closing
level OF July 30 last. Whether or not one
thinks that the price movement for stocks
and bonds Ia ..Iv 10 a ,rus,,vor+by s,o,, ..
a defnita trend or nrsf.r. 20 Coed =,
chiefly "a a rehound ,rorn sxcosyIv. a.
nrcssion which must hs temner.a a., ~
continuing conditions OF the war abroad
the fact remain. ,ha. thers hos ho.n
considerable recovery In s.cur,,ios r,ht.,h
Is gratifying in variou. resnects
Among other .bings ~ q. a r,e,.,r. -,
the progress mazda In raadhs,J,~ ,hn
financial and comm.rc,a, orsaniza,ior y,
the clrcumstances Of IN. W. 7, aiso
encourages efror,. IN r.s,or. En-. -,
lied securities market and the tone a, o,i-
cIal comment on ,hs nrosn.c, for s,n.,,
EXCHANGE r.sumn.,on :. NV, 49,, 800
hopeful than at any tine e,no. the y, vi a,
was suspended Admission. v,ora r,,as
yesterday tina. satIsfactorv confar.nc.s
between the Stock EYcban~. ou,hori,,..
and banking interests were nroc,-ediny
and that the proce.s If Iesseninr re.tric
large acceleration soon
Foreign news over ira ~~>,. an,
whether relating 10 III. military s,tua
ton or 10 financial feltures v,a.. M, "a
verse 20 ontinTstic opin,on. hsrs uo,.-
ever IL was NOR a.. less ovsrsba do,,.d
for the moment In tho Will S+raa, ,-,.,.
by tha happaninRs rear a, hand wi,
street interest was n,tt,raIIy great a. M.
reopening of the cotton exchangas for
with the facilities Of IN. f,tura mo III =,
restored the export OF the staple n likely.
to be stimulated to an approach toN,e ri
normal Dimensions This vii, react
fayorv,blv ON the already relaxing rnark..
for sterling exchange. and 80 presuma bly
con. r!bute TO Stock Exchange resunp,ion
here and in London.
There was keen curiosity also 10 OBJ
serve how so a.nportant n specl,latiye mar
Net as that for cotton would act after
so long a suspenslon The disclosure was
pleasing in every rtSDNCf. In cotton cir
Giles the behavior OF the market wa. de.
scr.be,l as 'gentlemanly." and although
prices fell away after the early deal
ings the range established had met expecta-
items and the figures made for the more
distant options suggested idels that the
staple was In the way of considerable
recovery eventually. Incidentally II might
be noted that n price Of ia to 81, cents
a pound marks "A substantial rally from
the prices reached in the outside deal
ings recently. ON the average there was
a loss of more than three cents pound
from July 80. but thu arrangements made
during the Cotton Exchange suspension
had protected positions against so Sc
we're shrinkage in addition TO the de-
cline which took place on the eve OF the
war.
Secretary McAdoo Is manfestlng peev-
ishness over the state OF paralysis with
which the cotton pool plan seems 10 nave
been stricken, but II is probable that the
opening of tho regular market for cotton
will prevent the scheme from being car
ried out. certainly in anything like the
dimensions originally contemplated. In
connection with the discussion OF the cot
ton market mention might he made OF
the fact that wheat and other cereals
were weak. possibly because OF the OPP
portunity offered FOR a diversion OF specu-
latiye attention to cotton.
there is not nu'n 20 ne salu ABOUT Vne
actual commencement OF the Federal re-
serve banking system. Here, as in other
centres the transfer OF reserves and the
initial stages of the transition from the
old banking and currency system TO the
new Went along smoothly. The rates
fixed for rediscounting, ranging from "a
and per cent here TO and 6ia per
cent in the borrowing sections OF the
country, were pretty closely In line with
open market discounts. They are not
such as to induce a rush OF applications
for rediscounting and they are further
evidence OF the conservative policy which
! Is going TO govern the management OF
| the new financial machinery.
| Rates for money were steady and per-
mitted the inference that the easing OF
lately had discounted the provision OF re-
serve bank facilities. Commercial paper
was quoted at from 5ia to 6ia per cent,
| but ninety day acceptances range from
| to ~ per cent, and It is very clear that
| mn matt Envy pre-1 "A 81 NAV ha felt