The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-12-03
Opening the Exchange

Inc opening OF tne new lOrk StOCA eA-
change to transactions In bonds subject
to certain restrictive regulations deemed
necessary emphasizes from one point of
view the fact that for some weeks now
there have been heavy healings, in pri-
yate, of course. in securities of this char
acter. Brokers whose regulations are good
have been saying for week or two that
they have been doing excellent business.
Some of them qualify this, saying, I'VE
can't complain" There is no voluntary
or legal impeachment to private tra1sac-
ton. If anyone possesses, say, good bonds
of the value of $4,000 and is willing to
part with them and II anyone is ready to
buy block Of bonds of that kind 1t SIM
ply remains for broker to bring the two
together and have their minds meet re-
specting the price. The aggregate .fans-
actions of this kind have been large since
about October /. Probably almost all Of
the transactions have been on cash
basis although In private negotiations of
that kind it is nobody's business but that
of the buyer and seller what the terms
of sale may be.
The opening of the stock exchange to
bond transa ctions undoubtedly reflects the
disposition to buy bonds. disposition
which is perhaps greater than the desire
to sell.
. here remains great diversity of opinion
respecting the date Of throwing wide open
the doors of the stock exchange so that
there may be transactions in stocks as
well as in bonds. Sir George Paish was
quoted as having said. just before he
sailed to Europe last week, that stock
transactions would be permitted upon the
floor OF the exchange whenever in the
opinion of the governors the time has
come for doing that 1t will not come
until after the first Of the year. This is
spoken of as safe prediction. since the
new year Is only four weeks away Ger
tainly the New York stock exchange will
not open until the similar institution in
London Is open for business.
Stock exchanges in other cities may be
open for business before New Years day.
This is regarded in the financial district
as expedient. 1t is in line with the care
full steps which have been taken which
are sometimes spoken OF as Feeling the
way"
The New York stock exchange when 1t
half opened its doors SO that there could
be limited dealings in bonds ilustrat ted
what Is called feeling the way" Sir
George Paish describes the method which
he regards as wise. as opening the coor
little by little bit.'
One of the features associated with the
gradual surrounding of the dangers and
difficulties which came upon us in the first
week of August, a feature which Is sure
| to become historic. was the steady and
sure manner in which our leaders per-
fected various arrangements which made
any international agreement with London
unnecessary This is feature Of which
| Sir George Paish spoke with admiration
when he was in New York. In August we
owed on current account probably as much
as $500, 900, 900, and it seemed inevitable
! that we would be compelled to come to an
emergency agreement with London.
| While various plans were under consid-
Grafton we adopted methods which h,ade
| an agreement Of that kind unnecessary
| We raised $500. 0OOO 600 in gold on two sep
| arate accounts. A considerable part OF
this gold was shipped to Ottawa and II
served greatly to relieve the situation.
| The cotton situation offered difficulties
| which at one time seemed even insur'
| mountable. but American leadership scen1s
at last to be furnishing the means by
| which these difficulties may be overcome
! When we were doubling whether we were
| to have the facilities by which our for
| eign trade could be maintained and In
creased 20 that = favorable traAe balance
could ~ cseate4 these bepan q = sud