Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-26
TALK OF EXCHANGE
DEOPENING STRONGER
THAN EVER BEFORE
Conditions SO Much Better
That Six Weeks Hence
May See General Resump-
ton of Active Trading.

Il rornnai conditions earlier than has been
generally looked for. The most i'm
portant step in this direction, and one
Fl which has had a material effect In
strengthening the situation everywhere,
was the decision of the New York Stock
+ Exchange Committee to permit trading
& IN unlisted securities at moderate con-
eessions from the closing prices as OF
.Iply 30. the last day on which the ex-
changes of the country were open.
The original restriction about not per
hitting sales under those prices was
e made so as TO prevent as far as pos
e ,lble. the liquidation which. II was gem
orally believed, was to be expected be-
cause Of the war situation abroad. This
rule continued in force for more than
ak weeks In the meantime, there has
come a satisfactory clearing of the
foreign debt situation and danger of
81 lioudation, while 1t is still apparent. is
NOT SO pronounced as II was when the
order to close the exchanges was given.
81 A wave of optimism said to he develop
ing throughout the United States gave
rise today to the impression that the
way is being cleared for the reopening
of the New York Stock Exchange, the
+ Consolidated Stock Exchange and also
the Cotton Exchange. II may be possible
10 reopen them especially the first named
{ institution. by November l. provided the
{ Federal Reserve Bank is working by
that time.
The announcement that dealings in un-
s listed stocks at moderate concessions Is
believed as the first step that ultimately
may lead to the resumption of regular
business on the exchange.
officials OF the exchange are feeling out
tie financial sentiment of the country.
They are also sounding the loan stua-
81 Il
f II Is said the financial machine is be-
s ginning to move, and that the situation
Is beng developed under careful treat
+ ment
RELIEF BEING GIVEN.
Bankers here today expressed the opir-
& ion that the steps taken by committees
here and in New York that have been
formed to supervise the trading situa-
& tion would do much to afford relief to
3 financial conditions generally. The fact
that trading may now be done in stocks
and bonds not listed on the exchange
q at prices few points below the July
d closing when approved by the commit,
4 tees. makes 1t possible for issues to seek
the new level bases that must he en-
pected when full resumption of trading
takes place.
No one denies the possibility of a heavy
Offering of European securities as soon
i as lHt HtCtSSdTy Ileulut1S are maze avail
able for their disposal. Each day that
the exchanges are closed, however. lessons
the amount of foreign selling that may
take place.
The present war crisis is teaching
Americans the advantages attached to a
central bank in a country's financial sys-
tenn. The efficiency and resources dis
played by the Bank of England In ham
ding the situation in Great Britain, com |
mands admiration everywhere.
In lieu of such an institution we have |
developed spirit Of cooperation among |
the national banks which has helped !
materially In meeting the emergency.
While, the Federal Reserve system Is not
yet in operation it is hoped to have 1t
fully working by the middle OF October. !
The Federal Reserve Board has been |
tully. organized and its advice and in |
nuence have helped much in solving the |
various monetary problems presented. |
Under the new system we shall have
u banks of concentrated power. This |
should permit greater unity of action |
than heretofore.
RESPOND TO LOAN CALL
The banks and trust companies of New !
York city responded Loyalty to the call !
for syndicate to handle the new mu-
nicipal loan of slOO,OOO.OOO provided to take
care Of the city's maturing loans abroad. !
Public offering of the loan has been a de- !
cided success, although the details of !
oVersubscription have not become avail /
able 10 outsiders A very large subscrip- /
tion response came from small investors |
to whom the per cent. interest and the !
absolute security of the loan proved at
tractlve. Institutions and investors in
the interior have taken large amounts.
ana To this extent the New York banks |
Will be relieved of n drain on their gold
I,t.,l, "A .II
as fast possible. But. at any rate,
English and other foreign holders Of the
city maturing obligations who have not
CHOSEN 10 extend their old loans into the
one two and three-year maturites nelly
provided, are sure of payment in gold.
further guarantee OF the payment
OF all our debts abroad in gold is FUR
nished by the banking pool which has
oeen organized to provide Sl@,MOOHO In
gold in case settlement, I'm whole or in
part, cannot be effected in bills Of ex-
change. The result OF the two opera
lions is IN provide a gold fund of $780,
W0,M0 with which to settle our accumu-
lated adverse balance of trade. This
should certainly reassuTe foreign cred
hoFs and help in ameliorating the for
egn position. We are already finding !
some of the most conservative London
banks willing to renew American ma
turtles Of banking concerns, and the
|
sututions in establishing the Sl50,OOOOn
gold credit referred to ought to increase
this disposition of London to make OF
renew loans on this side.
OUR GOLD HOLDINGS LARGE.
Owing to the close business relations
between the United States and Great
Britain preserved in spite Of the war,
II would not be to England's own best
interests to drain us of gold TO an extent
that would embarrass interests here. Co
operation and mutual forbearance is a
policy that will work out best in the end
ior the nations especially having in mind
the relations that will exist when the
European struggle is over
Our total holdings of gold are larger
than those of any other nation-abOut
81 $50, OOoo COO, according to the latest avail
able United States mint repOrt-but the
dllhculty is in mobilizing them under the
old banking system.
The buy -a-bale of cotton" movement is
meeting with so much favor that II
really has become a factor In the posi-
llon OF that commodity, now suffering
from an absence OF the usual purchases
individuals and business concerns all over
lne country already have made purchases
~ ten cents pound to the extent OF
Tens Of thousands OF bales, and the move