New-York tribune., 1914-10-18
new YORK BANKERS
DIFFER WITH PAISH
Fear Dumping of German
Securities Here if Stock
Exchange Opens.

The remarks Of Sir George Paish, the
economist and financial adviser to the
British government, concerning the re-
opening Of the London Stock Exchange.
and the effect of such action on the
reumption of security trading in this
market, yesterday called forth comment
from international bankers.
1t did not necessarily follow, IL was
argued, that the opening of the Lon
don exchange would antedate the open
ing of the New York Stock Exchange
by short interval. The banker who
said this based his assertion on the
premise that London has refused to
carry out orders executed by Germans,
and that American securities held in
the Kaiser's domains would bo dumped
into this market in the event of any
official resumption of trading.
That fear of such a contingency carries
much weight in the discussions of New
York's financial leaders was admitted
yesterday. While Germany was a heavy
seller of stocks listed on the exchange
shortly before the outbreak of the war
she is still believed TO hold a large
amount, notably Canadian Pacific.
Some New York bankers attach more
Importance to the outcome of the East
ern freight rate case, in connection
with the reopcning of the Stock Ex-
change, than on what action may be
taken in London. They would not 60
so far as to say that favorable de-
cision would deter Europe from un-
loading her American securities upon
this market, but they did believe the
confidence that would be instilled in
the mind of the American investor
would do much toward absorbing the
selling that is still expected from
abroad.
One banker whose name is familiar
on both sides of the Atlantic asserted
that If to the petitioning railroads was
granted a substantial advance in
freight rates he had no doubt that the
New York Stock Exchange would open
shortly thereafter under restricted
trading regulations. Regarding the
interchange of credits between the
United States and England, he said
that gold payments should be met with
gold. In other words, if American
bankers are now willing to meet their
obligations in the precious metal moth
ing short of similar method of meet
ing foreign obligations here should be
accepted.
Among the problems that must be
faced when the local stock market re-
sumes is that of dealing with call
loans, particularly those held by Cana
dian banks. To forestall any possible
heavy calling of loans from that
source, it was learned yesterday that
bankers are considering the formation
of pool to aid those borrowers who
might be embarrassed by such action.
The discus sions are still in tentative
stage, and no figures, bankers said,
have been named as to the amount OF
the fund TO be gathered.
Those who favor the plan point to
the formation of the Sl00,000,000 pool
for relieving the foreign exchange
situation and the s150000,000 cotton
loan fund now in process of formation.
They argue that those who have bor-
rowed on Stock Exchange collateral
should also receive assistance to pre-
vent any disaster for which the Euro
pean war is responsible.
IL was also reported yesterday that
a prominent member of the Stock EX-
change is seeking the cooperation Of
bankers in a plan to form pool to ab-
sorb stocks and prevent any such de-
moralization as appeared just prior to
the closing of the exchange.