The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-21


way of the essential preliininaries to a |
consideration Of the problem OF regular |
resumption. SO far however. all the |
planning for a reopenug Of tho Stock |
Exchange has yet to be done.
The one formidable obstacle, or the
obstacle which looms most formidable
IN :ho path OF resumption. is the great
mass OF securities which represents Eu-
ropes half century Of accumulated in
vestincnt in American enterprise. The
war itself. with its contingencies OF vary
Ing fortune. is factor in al con-
illusions as TO tho eNigencies and disposi-
tons which may affect this country /
through European holdings of American 1
securities The aftermath of war, with It's ,
portcnts OF Indemnity and hugo public !
loans. has nlso TO be taken into tho rCcb- |
uuhtg. with due allowance for offsettluS ,
influences which may reduce the volume ,
of European Liquidation hero. the con-
siderauon Of tho problem OF rcopening |
tie Stock Exchange is very largely n
matter of prepare ton TO receive and pay /
for American stocks, bonds aud notes |
which Europe will certainly return TO |
a very large amount on account OF the |
war.
How much EurOpe's American fIrv-st. /
ment may BIO ls "a question. Reasonable |
conjeotures place Il anywhere from thrc. |
10 four billion dollars up TO eight ~ |
ten billion dollars. u IS untninklble !
that anything more than a rclatiNeit i
small fractional part of the total will !
have 20 he repurchased here but even
III" amount returned, however gradually |
will be- so large that the rcopening OF tho |
Stock Exchange and tho resumption Of /
dealings In securities cannot BE- contem-
plated until special arrangements have
been made 70 receive Europe's selling
20 finance &C. and 20 save American value.
and resources from a shrinktce and drain
I IL. s..... -
conditions and enterprise generally.
Certain Aspects OF tho Problem.
Everybody who has engaged thouchtril
notice with this subject secs that tn.
problem IS stupoudous. hu' q IS not p
soluble. No problem o' human AFFAIRS
arising from the acts of mon. wise o.
otherwise. is Or ever has boon entirely
bafling. Time, 70 begin with. has always
worked In behalf OF efforts 30 overcome
human difficulties, and for the rect there
has only been needed. as there I. only
needed to-day. a determined approach 20
consideration OF a difficult problem and
, a resolute Intention 10 discover it's solu-
ton. There arc certain things In the
problem or stock Exchange reopeninr
which have already disclosed Themselves
as fundamental or automatic
II IL not primarily stock Exchange
/ problem and question for the Stock IN
7 'listllS' duAlIpFtilNS themselves To INnuI H.
] At the most they are merely supervisors
OF the organization which constitutes the
market, the regulators of the market place
wneIo!n dealings ia securities ar, col
Quoted. II Is FOR banking Interests 20
4 make thH necessary arrangements for a
/ resumption OF stock market activities
4 Another thing also obvious is that "A large,
/ conversion OF European Investments ,u
/ American securities for tho puf pose OF
Withdrawing gold from thc United States
cannot bo allowed except as gold may 20
( OUT Mt carefully regulated Intervals .ud
/ in regulated amounts FOR tho settlement
/ of balances which cannot he tab % caI~
. or hy our export trade. II sc'.ne also
d That nothing can poss bly, he satisfactorily
| arranged toward q comparatively saf, ~.
SUMPTION OF d-nliugs In securities except
I 10y international agreement. which VIII
4 include among other things a r,upcu,u-
Of the securities markets In ~oue OF the
oth"r princ.pa. financial centres Of tie
world
That . is problem yhiery for banking
| interests TO solve has already been stated.
but T. Is conceivable that In this on"
| particular governmental aid may have 20
be inv ol\cd some what after the manner OF
the assistance which Government has lent
abroad TO tho financial readJuS'msu's
which the WAR has required. That tine
International money market must be -
stored 10 some s-mbince Of normal WORT.
'iiS b'l'lt lti'' sc lilltlcS iIark't can w
reopcued seems also 80 bs realized. Il
h'S been through tho international cN-
changes that the European Investment
position IN American securities has been
iudncod To whatever extent this position
Is going TO hc undouc ths international
exchanges mus provide the principal
means so that thcrc H.'l he no more than
= minimum employment Of gold II the
rehabilitation Of sterling exchange can
hH supplemented hy tho creation OF .n
American bill market. with dollar On
Change accepted at foreign financial cen
tres for settlement OF International bal
! drccs, tho solution OF the stock market
problem viii De rendered vastly easier.
J. iS quite possible that the establish
: meut or the Federal reserve banking avs
! tenn. with the facilities which Il Will
provide for developing an American bin
market. viii condurr toward activities in
foreign exchange OF great bcr"nt to oar
securities market position Internationally
regarded