The Sentinel=record., 1914-08-08
MARKETS
To NOT BE
OPENED
RUMOR THAT WALL STREET
WOULD RESUME OPERATIONS
BRINGS PROMPT DENIAL FROM
STOCK EXCHANGE-FINANCIAL
SITUATION CALM,

New York, Aug. 7.-Reports from
wall Street today that the New York
stock exchange soon would be re-
opened broueht prompt denial. The
committee appointed to maintain act
I'VE supervision over stock exchange
affairs during the period of suspen-
| sion made this statement:
The special committee of five viii
not recommend to the governing COM
mittee the opening OF the exchanse
until in their judgment the financial
situation warrants it and as before
stated ample notice will be given Of
the proposed reopening."
The statement was made primarily
because it was felt that reports of an
early reopening if allowed to spread
unchallenged would give alarm
| throughout the country. 1t was known
| that pressure was being brought o
bear upon the governors by some
members to consider an early reop-
ening. The position of the brokers
is rendered difficult by the heavy
losses during the time of idleness and
It was felt by some members that
there would be small danger of heavy
liquidation by European holders Of
American securities such as upset the
market last week.
This selling, it was said, was for the
purpose OF securing gold and with
virtual embargo on additional gold
exports now in effect it was thought
Europe would have no further reason
for dumping securities on this market
The committee of five, however,
felt il would be slightly dangerous to
reopen the stock market until finan-
cial skies cleared definitely, particu-
larly in regard to the credit system
and foreign exchange. 1t may be stat
ed authoritatively that the governing
committee intends to be guided by
the judgment of the most prominent
financial interests of the country and
not by pressure from impatient ex-
change members.
The general financial situation to-
day continued cam. More confident
hopes were entertained of the grad
ual resumption of activities in finan-
cial and commercial lines. but il was
felt there were no immediate pros
poets of normal conditions in inter
national credits and foreign trade.
once a decisive naval engagement is
fought and control of the seas is os-
tablished unquestionably. it is beliey-
ed resumption of foreign trade on a
considerable scaie will be possible.
Foreign exchange bankers met to-
day in an effort to devise means for
lifting the embargo on expectation ~
merchandise and to provide payment
for it, but they did not formulate
definite plan of action.
There were indications that the ou1-
look was improving so far as the posi-
tion of the out of town banks was
concerned. New York banks received
assuring messages which showed that
the tension was not SO acute as few
days ago.
An easier tone prevailed in the mar
ket for time money and it was expect
ed banks would lend more freely next
week. Limited amounts came into
the open market today and were loan
ed at per cent for six months. Nom
inal quotations for dates from 30
days to four months were made at
7 to s per cent. Banks adhered to
their policy of loaning only today to
day borrowers. Canadian banks con-
tinued to deplete their balances here.
No Inconvenience to domestic bor-
rowers has resulted from the gradual
shifting to loans from Canadian insti-
tutions to local banks.
There was a marked Improvement
in the commercial paper situation and
institutions were slowly resuming the
purchase of paper. The rate for the
! best names was per cent. There
were indications that interior institu-
tions would be in the market next
week for paper.