The Washington herald., 1914-08-28
1ITTLEBOARD'
MAY RESUME
Consolidated Stock Exchange
May First Test Value in
New York.
EXCHANGE PROBLEM UP
General Rise in Prices Continues.
Chemicals. Photographer Sup
plies and Lines Increase.
EXCHANGE PROBLEM UP

the question Of reopening the Console
dated Stock Exchange IL being agitated.
although the German advance tends to
throw a damper upon IT,
The consolidated houses have no Eu-
be called upon to execute cable orders
unless some Of the New York Stock
Exchange houses broke the rules and
turned their orders over to their rivals.
The little board had been dealing in
stocks on cali for half an hour before
the big board" opened, and did so FRI
day, July 81, without being swamped.
although the big board" found II unsafe
to 20 on. II the little board traded
for cash-on-delivery or in some other
limited way IL would test the market
for securities without running any serious
risk, and naturally those interested would
like to know how things stand.
Small investors are still buying securi-
ties to the extent of 5000 shares day
or more, partly through the clearing
house of the New York Stock Exchange
and partly in the gutter market" or
over the counter. This IL proved by the
warning issued by the New York Stock
Exchange authorities to some OF its men,
bers that they must not trade over the
counter in violation Of the rules Of the
special committee of five.
As these rules prohibit sales through
the clearing house at prices below the
close on Thursday, July 80, such houses
cannot deal in deprecated issues, and II
is hard to make them toe the mark.
Curbstone brokers say that American
Sugar Refining. American Beet Sugar,
United States Steel common and Inter
national Paper shares are selling higher
than the closing prices and that several
railroad issues are in a similar position,
while copper and oil shares are lower
than they were then. Owing to the
difficulty Of bringing buyers and sellers
together It is difficult to trade in the
inactive stocks. but a lot Of securities
like Steel common, in which there are al
ways buyers and sellers for cash, have
changed hands.
Foreign Exchange Problem.
Prominent bankers, in discussing the
situation, both financial and commercial.
express the belief that. while there Is now
a luI in operations, within a reasonable
time much betterment will develop. in
this connection attention was called 10
the South American situation with respect
to commerce between that country and
the United States. In the past South
American countries have traded largely
with Europe, which country has accepted
lonE-term credits in payment for
products.
With the war waging abroad, however
South America naturally will have 10
come to the United States for large
amounts of various manufactures etc,
even though that country may not be able
TO secure long-term, credits here. 1t
pointed out that possibly the American
manufacturers are not in position to ex-
tend credit for a large volume of business
should such demands be made upon them
by South American interests. but it IS
believed in well-informed circles that a
way will be found to overcome this diff
Guilty.
On the other hand. bankers say. it
should not be forgotten that Great
Britain. France and other countries in
Europe must Of necessity look to the
United States to supply them with grain
and other products, and as soon as a
proper basis of foreign exchange is
worked out this phase of the situation
will be greatly simplihed.
Bankers are now eXerting every effort
to bring about the result desired in this
respect and while It will doubtless take
some little time. there is a feeling that
before long a system OF credit will be es-
tablished which will provide the medium
necessary for trade relations between
here and Europe on an extensive scale.
Meetings between bankers are being
held daily and progress Is reported by
those who have attended them. 'Consid
ering the unusual conditions that have
been brought about as a result OF the
war" said a banker yesterday, the sit
uation is well In hand and I believe that
the United States will emerge from the
difficulties now confronting her much
quicker than many are inclined to be-
leye. It would seem TO me that we al
ready have passed the darkest days OF
the present period of unsettlement. Eng
land must buy cotton from the United
States, while both England and France
will have to call upon US for large guam
titles Of all classes OF products before
very long"
Linen Prices Increase.
Advances Of as much as so per cent have
been paid on all linens. according to trade
authorities. The latest information avail
able from abroad states that higher prices
have ruled on all raw and woven linen
goods. This was not surprising, in view
OF the fact that nearly all mills in Ire
land, Scotland and England outputting
linen have been forced to operate on half
time, due to their inability to secure fax.
Houses with contracts calling for the
delivery. of linens state that the proba'
bility Is shat their deliveries will be de-
layed all the way from two to two and
one-half months, due to curtailment nf
operations oy the mills as Wen as the
practical suspension Of shipping.
Importers were advised as far back IS
August to hold all their merchandise
for higher prices, and advances ranging
from 10 to 80 per cent have been asked
on all linens ever since that date.
The crux OF the present situation IN
linen lies in the fact that the foreign
mills are unable to secure fax, both the
German and Austrian markets being
swept bare OF that commodity. Over 50
per cent Of the worlds output Of fax is
grown in Russia, and with this seasons
crop estimated to be only from 40 to 80
per cent OF normal, and with shipping
suspended, II Is clear that the advances
which have already taken place in linens
are warranted
Startling increases In the price Of many
chemicals essential to the photographer
In the development OF pictures have been
recorded since the war stopped the inn
portation Of these chemicals and COM
pounds which come from abroad. and
with prices mounting, higher daily, some
Of the photoRraph Ralleries making n