Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-29
BROKERS ARE GIVEN
GREATER LEEWAY IN
MAKING BOND SALES
Permitted Now to Trade
Among Themselves-Ex-
change Reopening Plans
Depend on Reserve Bank
Operation.

BEGINNING today, and until further no.
flee. dealers in investment securities
which are not listed on the Stock Bx-
changes may trade as between them
selves. They may issue circulars or a
list of their security offerings, but the
prices to be quoted, either In individual
sales among brokers or to investors, must
first be scrutinized and officially approved
by the special committee representing the
different bond houses, named some time
ago to sanction proposed stock and bond
transfers.
This is the first time since the exchanges
closed that such privilege has been Of
tically granted the investment brokers.
They have been permitted, for several
weeks. to negotiate sales Of their own se-
curities 20 individual investors, subject
TO the committees approval, but they
have been restrained from transfers as
between tn emselyes. The idea of the orig
nal plan was to prevent the letting down
of bars that would permit unrestricted
transactions that might have a tendency
to influence the very liquidation which
Investment houses everywhere and the
banking institutions that hold their Sc
curities as collateral have been trying to
stave off. And 1t is for this same rea-
son that the officials of the various ex-
changes throughout the country are go
ing slow on the reopening proposition.
The gradual wiping out Of the restric-
tions that have surrounded trading since
the end of July is an indication of the
better feeling regarding the general fnan-
clal outlook. In New York today invest
ment bankers are talking of a formal
reopening of the Exchange about Decem-
ben 1. The original date set by several
well-informed traders was November 1,
but there was not taken into consideration
In this prophecy the fact that it Is very
likely the Federal Reserve Board plan
would not be in operation by that time
And there is every reason to believe that
there will be nothing done in the line of
a general official resumption until these
plans shall have been completed.
Inasmuch as there is coming due
October l large number of American
debts owed abroad, there has been a
general stiffening in the foreign exchange
market. Prices in the last few days have
taken decided upward tendency, espe-
cially in the case of cable rates, which
are so much in demand now in view of
the inpoSsbihty for the transfer of gold
to Europe by steamship in time to reach
foreign ports on the October due date.
Extension of the British moratorium
from October to November 4 does not
apply to bills of exchange other than
checks or bills on demand. On account
OF the fact that these obligations arc
excluded from the extension, persons on
this side who had been taking advan-
tage of the moratorium are Obliged to
buy exchange in order to cover their OBJ
legations before October 4.
II Is understood that large volume
OF finance bills had been put out during
the summer months. bankers expecting
10 cover these bills with grain and cot
ton exchange at low rates. but their
maturlties have been extended from time
to time under the moratorium Now that
settlements must be made by October 4
there was also good inquiry for de-
mand bills on London for the Mature
tanin, which is the last boat to reach
London by October L. Some of these
finance bills have been renewed, but it
Is believed in some quarters that no
small part of them will be paid off,