The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-02
Opening of Exchange Finds
Prices Most Encouraging.
National Financial Machinery
Now Running Smoothly.
U. 5. IS WELL FORTIFIED
And Business Conditions Are
Returning to Normal Basis.
Amendment Is Proposed to Fed
eral Reserve Act.

eral Reserve Act.
(By B. c. Forbes.)
New York, Dec. 2.-The nations
financial machinery is being put into
motion smoothly.
The New York Stock exchange. hav-
ing successfully resumed trading In
bonds, would forthwith arrange to be-
gin dealings in non-international
stocks. A market for stocks ought to
be, and probably will be, established
on the floor of the exchange within
the next fortnight.
Why should American investors be
denied full and free opportunity to
buy or sell Such stocks as Brooklyn
Rapid Transit, Consolidated Gas.
General Electric, marlborough Rapid
Transit, Bethlehem Steel. American
Sugar. American Wooden or General
Chemical?
Many industrial and traction
stocks have not been hurt by the war.
Many of them are not heavily held
abroad. Why not resume dealings in
them forthwith?
There may still be reason for keep
ing the railroad section of the stock
market quiescent. Most OF our i'm
portant railroads have numerous for
eign names on their stock lists and
our bankers are not eager to encour-
age trading in railroad stocks until
the interstate commerce commission
has rendered it's verdict in the eastern
freight rate case. If no increase In
rates be sanctioned the effect upon
the re-opening of the stock exchange
for unrestricted operations may be
serious and prolonged.
U. S. Well Fortified.
However, that one point apart. the
United States is well fortified for re-
turning to a normal basis. We have
now:
F'irst-A most elastic and effective
| national banking system.
| Second-A plentiful supply Of loan
able funds.
Third-Moderate interest charges.
Fourth-A constantly swelling, ia
| vorable trade balance-the November
returns would be even better than
$57, 100000 in excess of imports.
Fifth-Foreign ex i-ange rates be-
low the gold export level: Shipments
of the ctal from New York have
subsidized.
| Sixth-Reviving industries.
| Seventh-Marked strengthening of
conditions financially and commerce
| tally. J
Eighth-Harvested crops of unpar-
alleled bountifulness. =
Ninth-Prospects of less ANTITRUST
ness agitation and legislation at the
next session OF congress-.
Tenth-A general spirit of cooper
alton for the common good, a spirit
that was not pronounced six or four
months ago.
To this 1 would add a growing be-
lief that the war will collapse with
sensational suddenness some morning
before many months pass-probably
it is argued, because of Germany's in
ability to obtain one or more essen
tial materials for equipping her enor-
nous fighting force.
Many Stocks Up.
Upward of three score stocks are
today quoted at or above the prices
ruling when the exchange closed.
Al Why, therefore, should dealings in
) issue be prohibited on the floor OF
, the institution. The thing is not sen.
/ sible. 1t is shortsighted. It is fraught
? with hardship and harm. The stock
/ exchanges prestige cannot but be in.
jured by persistence in such a course
The time has come to act! The
federal reserve act needs amendment
r At present American merchants ar,
4 Disseminated against.
u National banks are forbidden to "ac
cept'' for our own merchants or manu-
facturers in connection with home bust
ness. Only bills incidental to foreigl
trade transactions can be accepted
by members of the federal reserve sys
q tenn.
The rate for ''bank acceptances" ha
e gone below 4 per cent whereas com
mercfa1 paper excluded from tlli
a privilege is quoted at to 5h per cent
. a burden which it is unfair to fore
upon our mercantile community whe1
it could be so substantially lightenes
by a simple three line amendment t
the federal reserve act.
l. How much this avOidable tax upol
merchants and manufacturers is. ma.
be gagged from the fact that there wa
outstanding at one time this year no
less than one billion dollars 81 ,0O0, 900,
OO0) of commercial paper.
The United States cannot hope to es
tablish dollar exchange" througf1ou
foreign countries until it provides
broad, active, advantageous discoun
market here, and to create such
market it is necessary that bank &C
iceptances" carrying, as they do, lov
interest charges, become staple bank
ing commodity through having com
mercfal paper admitted to this priv
lege.
1 understand that Paul NJ. Warburs
the most experienced banker and finan
cier on the federal reserve board, is il
favor Of the action here advocated
The matter is one of great and wide
spread Importance. The benefits de
r1vable from a sensible amendment t
the law are many and divers.
I propose to take up the whole sub
ject in future articles, to gather tn
views of official and unofficial author
tiles. to present statements from lead
ing bankers and urge upon congress
the desirability of early action.
To build up foreign trade is a worth