The sun., 1914-09-13

idlioHs WIN announcer tnerc Is trouble.
Hence We had trouble when German.
French and English bankers and mer-
chants withdrew their deposits and
called their loans in New York city
during the last week OF July. 1914.
t3) Added to the demand OF bankers
for their money and the request OF
merchants for their funds came an
avalanche OF selling orders from Eu-
rope. In justice to the New York Stock
Exchange governors 1t should be recog-
nized that the exchange was the last
to close and that wnen New York did
close II was the only open free market
left In the world. And foreign bankers
and investors cannot be criticised for
selling American securities. Their
American securities were the only ones
they could sell. All other stock ex-
changes were closed. II was question
with them OF selling their American
holdings or going into bankruptcy.
For this reason the closing Of the
New York Stock Exchange not only
helped save many American firms but
also protected many European concerns
which would have been forced by their
banks to sell their American securities
II the New York Stock Exchange had
remained open.
A. in the case OF the deposits and
loans above referred TO. Il was neces-
sary to pay for these securities in gold.
resulting in an additional strain on the
banks OF this country. especially New
York. Let me here also say word OF
praise for these New York banks.
know 1t is customary thing TO cast
rms is very common habit in the
West. /. however. know from actual
experience that during the past few
weeks the banks have acted Splend!dly.
and have been most patriotic in carry
Ing the tremendous burden imposed
upon them-a burden which they have
borne not simply for themselves but for
the entire banking system Of the United
States.
IL IL now about six weeks since the
stock exchanges were closed, and dur
ing this time conditions have daily i'm
proved. Investors have strengthened
their loans, stock exchange Arms are
In splendid condition. and even most of
these large houses with foreign conncc-
tons have pretty much Strengthened
out their affairs. The patient is by no
means as we'll and strong "a before the
accident. but the crisis has been passed
he Is rapidly mending. and the time
has come when he should begin 70
think OF getting about in order not to
become bedridden.
IL is wise to go to bed and take a
rest when one is i'll. but It is as danger
Gus to stay abed too long as not To 20
at all. Stlmulants. medicines. wheel
chairs and crutches all have their
legitimate use. but they can likewise be
abused. Moreover. II such artificial
aids are used too long. their good effects
are lost. Although the bankers did the
right thing In closing the stock ex-
changes. many OF them are seriously
asking IL 1t would not be better for the
situation now to open them again, at
least to trading limited between cit!-
zens Of the United States
This has been most aptly stated in
publication which, scmi-oficialiy. rep
rescnts the best banking interests OF
this country:
"All values are rela;lv and the prices
registered on the exchange control Sc
curity values in general, dealings be-
tween private individuals as we'll as
N'hh'S lA'ii Hdllu TO Ndnu. win the
Stock Exchange closed therefore. our
measure OF security values is missing
and We are like a mariner at sea minus
his ruddcr and compass. Doubt and
confusion mingle with growing anxiety.
1T must be remembered that the
longer the reopenng OF the exchange Is
delayed the greater will be the conges-
ton which must be taken care Of when
kn
AT the moment security dealings may
be said to be absolutely suspended, not
merely on the stock exchanges through
out the country, but over the counters
of investment houses and between pri-
vate individuals. When tho New York
exchange was closed there was instan-
taneous recognition on the part of bank
ers and investment dealers that the eX-
change fixes prices, not only on it's own
listed securities. but on all others, and
that II business IL discontinued on the
exchange II must also he discontinued
In other directions. All have been 10y
ally cooperating with the New York
Stock Exchange authorities in refrain
ing absolutely from the placing or ne
gotiatng OF securities,
The Association OF Partners OF Stock
Exchange Firms issued statement ask
ing members to carry out the arrange
ment in good faith so that the dealings
and prices made under stress shall not
tend to establish market Finally II
should be noted that even the customary
auction sales OF securities al New York,
Boston and Philadelphia have been COM
plctely abandoned for the time being"
OF course. II this artificial gagging and