Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-29
Success Following Resumption
of Business in Certain De-
partments Proves Tonic.
NEW SYSTEM OF BANKING
AIDS FINANCIAL MARKET
Governors of New York Exchange
However, Still Unwilling to Re-
open for General Business.
BY w. S. COUSINS.

BY W. S. COUSINS.
| NEW YORK, November 2S.-The
spirit of thanksgiving has been very
much in evidence this week, and Wall
street has breathed more easily than at
any time since the war began. And this
is right and reasonable. The success
which followed the resumption of busl-
ness in certain departments of the n
| nancial district last week, together
with the easing of the money situa-
ton as a resultant of the opening OF
the new federal banks. has proved an
excellent tonic for the market. while
| the 1-told-you-So's have been hlgnly
complimenting themselves upon their
great ability to predict the course or
! future events. Reports from the cot
ton and curb markets tell of an eX-
| cellent buying demand, which in the
latter market has carried the price of
many shares to a higher point than the
July 30 quota tion-and still gaining.
The governors of the New York Stock
| Exchange are still unable or unwilling
to yield to the almost universal clamor
for the reopening of the exchange. Many
are afraid as yet of the ht rrors OF Tor
eign liquidation, which might be en-
phasized should the fortunes of war
turn one way or the other. 1t does
not seem reasonable, however, that a
deluge of foreign selling can come at
this time. when we consider that from
| the standpoint of safety of principal
and of good and prompt return on the
investment American securities are Su-
perior to those of any other nation in
the world. America is the only really
large civilized country in the world
not already either participating in the
war threatening to participate
Furthermore, America is not a bank
rupt nation.
Default Posi- biIity.
England, it is believed, will come
| very near being able to provide the
sinews of war out of the current
| savings of her frugal people. rlanc.
| has excellent assets in the form of the
fruits Of frugality that have already
| accumulated. But If the war continues
for long period it is expected tnat
| most all continental countries con-
cerned, as well Japan and Turkey,
| may be compelled to default, Temporal
| rily in some instances and more or less
| permanently in other oincial state
| bonds. 1t must not be forgotten, how
| ever, that many foreign holders OF
| American stocks, though reailzlng the
| superior quality of their holdings. may
| be impelled by patriotic motives into
| sacrincing their investments in order
to contribute to their countrys neces-
| sites in this time of peril. In sucn
| case, of course, it is impossible to estI-
| mate the extent Of the liquidation,
| though the present possibilities are re-
| mote.
| The governors of the exchange met
| Tuesday of this week and, after going
| over the whole subject very carefully,
| made the following announcement:
The special committee Of five rules
| that SO much of rule No. Il as apes
to dealings in listed bonds through
| the ciearl1.s house ue resc.nued. 10 La
| effect at the close OF business Friday,
| November II. 1914. Beginning Satur-
I day November IS, 1914, dealings in
| bonds listed in the exchange will be
| permitted on the floor of the exchange
| between the hours of 10 and O'Clock
| each day except Saturday, when deal
| ings shall cease at II o'clock noon.
| Such dealings to be under the super
| vision and regulation of the committee
and to be for cash or regular way
only and not below the minimum prices
| as authorized by the committee liom
/ time to time. Transactions at prices
| other than those allowed by the COM
| mittee, or in evasion of the committees
rules, are prohibited. All rules of the
exchange governing delivery ana de-
| fault on contracts covered by this reso-
luton shall be in force on and after
| Saturday. November e, 1914, cut ti!e
closing of contracts under the rule
| shall be subject to the foregoing pro-
| visions.
Makes Only Slight Changes.
This is not as important an an
| nouncement as might seem on first
| reading and in fact it makes very
| little change in existing conditions
! Certainly it does not justify the daily
newspapers in announcing the open
| ing 0f the stock exchange" in big
| headlines, as many of them did We'd
| nesday morning. 1t is nothing new to
| trade in listed bonds. and all that the
| exchange governors have done was 10
add the machinery of the stock ex-
, change to whatever facilities already
existed for the trading in these bonds.
| In brief, the conditions under which
trading in listed bonds is permitted Will
| include the establishment each morn
| ing of certain minimum figures at or
above which only will transactions be
permitted. Should a seller be unable to
secure this price, he has nothing to do
but to wait until conditions so improve
as to provide purchaser at the es-
tablished" price. In this way the ex-
| change authorities expect to feel their
way until they are justified IN enlars-
| ing the scope of public trading.
The next step will undoubtedly be the
! addition of guaranteed stocks TO the
I list of securities IN WnlCn open InOuPn
! price-restricted transactions are per-
( mitted; then in natural course should
come stocks of corporations in which
| there is comparatively slight interest
| abroad and finally all other securities
that are on the stock exchange official
| list With prices under control the
| stock exchange management does not
| believe that so much danger VIII exist
1 in the direction of uncomfortable for
| eign liquidation. So far as money con-
| ditionS are concerned. they could hard
| w be more favorable for the expert
| ment of business resumption; and it is
| conceded by banking interests that
| there is at least no immediate necessity
| of organizing pool for furnishing call
| money when the exchange reopenS. The
| committees rules for dealing in bonds
| prevent transactions for foreign ac-
| count by cable. They provide that the
| securities shall be in such position as
| to be delivered within one day after
| the transactions are made. This pro-
| yiso is contained in paragraph relat-
ing that dealings shall be for cash or
| regular way only. Sales of foreign
| holdings not in position to be imme-
| diately delivered are usually made with
seller 10 or seller 20 options. But aside
| from this single exception the usual
rules governing deliveries are contin-
ned for the restricted trading and there
is no prohibition other than that for de-
1 liyeries and the price limits.
James T. Hill Not Very Optimistic,