Evening star., 1914-09-28
may BAR SHORT SALES
SAID, TO REOPEN|NG
Plan to Limit Selling to Actual
Owners of Stock-Record
Bear Trades.
The Cotton Situation-Many Cor
porations Declare Regular Divi-
dend Distributions-Go Gossip.
BY I. A. FLEMING.


A ruling preventing the borrowing Of
stocks. thereby checking short sales.
would be a most telling aid toward
the prevention OF disaster when the
governors of the New York Stock Ex-
change finally decide to take the
chances Of opening for business.
1t would clip the wings OF the con-
tfngent that presses hardest for the
advantage in times of serious condi-
tions
1t was their action more than the ac-
tual liquidation of stocks that forced
the closure following July 30. when
many of the leading securities were
traded in beyond capitalization by the
bears. recognizing the worlds war as
their opportunity
During the last week in July 712,71S
shares or steel common were traded
in. matter of zoe, 900 shares in excess
OF entire capital stock: in Union Pa
cine $4,000 shares of common stock
were bought and sold. $4,000 shares
above actual capitalization, while 4sl.-
oo0 shares of Reading were registered,
or 10000 shares more than the issue.
IL Is lair to presume that the heavy
sales elsewhere in the list were largely
made by the bear interest. fattened
with long months of successful effort
and the practical assurance that Euro
pean troubles would secure even
greater success.
Another recent suggestion in aid of
an early opening of the exchange is
| made by John Muir Of Wall street, who
suggests that America could arrange
| to buy American securities which Eu-
rope might desire to sell on the partial
paymen plan"
II believe" said Mr.. Muir. 'ft would
solve the most important problem that
TINS country is facing. America Is in
the position of willing investor with
capital Immediately available"
greatly improved and the financial
skies are slowly clearing. the chances
for the general resumption of trading
on the security exchanges are not as
promising as brokers would that they
were.
The Cotton Situation.
Thomaston cotton mills, and vice pres
ident of the Aldora mills, both of
Thomaston, Ca, who was in Wash
| fngton today. had this to say of the
| cotton situation in the south.
| Cotton growers claim that they can
a pound. and they are holding very
generally for that figure. Merchants
| In the various towns are assisting
planters. large and small, by extending
| CTeQlI al manner OF necessities On
the basis of 10 cents a pound for their
cotton. Mills cannot afford to buy cot
ton on that basis. Actual value is now
| 81f cents. We have hard time secur-
ing enough cotton around our section
of the country to keep our mills oper-
ating, and have to go more than 100
| miles around the country to get the
supplies we need at the market price
No more cotton came out when we ad-
vanced the figure to 91s cents than at
81; Some planter. can raise more to the
| acre than others, and find some return
at the ka9 cents. pound value.
'The new Lever law, regulating de-
liveries by members of cotton ex-
changes. will be a great help in normal
times to mill owners, and We can then
buy our supplies of the exchanges for
future or immediate delivery and get
the grade we want and pay for.
| Il think that the area planted to cot
ton next year will be very greatly re-
duced and that the south will raise
more corn, oats and hay than ever, to
the relief of the cotton situation"
Financial Notes.
The deficit in reserves of New York
| banks for the week ending Saturday
was S30,709.000, a decrease Of s7.647,-
700.
Chicago bankers furnish s17.00o.000
to the gold pool
One of the banks in the special
"hoarding'' list, given out recently by
Secretary McAdOo, was a Pensacola,
Fla, institution, with 49 per cent re-
serves. The president Of the bank was
formerly bank inspector in this dis
trict, one Goodheart. He was the last
official examiner of the United States
Trust Company. Pensacola itself has
recently suffered a very severe bank
suspension, and it was probably the
part of wisdom for financial ipstitu-
| fhs.r tn 90 OF