The Cairo bulletin., 1914-10-05
Evidences OF Considerable Money
Awaiting investments in London,
Says Henry Clews
AMERICAN STOCKS NOW
BEST IN THE WORLD
Decisive Victory BY Allies Would
Hasten Resumption of Business
/ Here and in London

New York, Oct. S.--Further pro-
gress can be roco. ded in the ADJUST
ment of industrial and financial af-
fairs TO war conditions. The most
important improvement has been in
the foreign exchange situation, facll-
itated by operation OF the new
$500. 600. 900 gold pool which made
its first shipment of $4,000, 900 tc
Canada during the latter half of the
week. Sterling exchange was thus
being put upon more practical
basis: and foreign intercourse, com
mereially and financially, will be ma
terially helped thereby. Another
encouraging development was the
naming Of directors for the Federal
reserve banks in the principal cities
The list for New York has already
been completed, and it is hoped tha'
the local institution will be ready
for operation by December /, In
which case it will soon be possible
for the entire system to be in work
ing order. 1t is of great importance
that the new reserve banks be open
as soon as practicable, since they
provide the most practical relief In
the present situation. The opening
OF the Stock Ext hange may have tt
be postponed until that date. Much
will depend upon the outcome of ths
war. A decisive victory on the par
of the allies would hasten resumption
both here and in London From tn
latter point reports come that effort.
are under way for cooperation with
th Government towards an early re
opening of the London Stock Elk
change Should the latter event oc
cur, 1t would of course materially
hasten the opening of the New Yorl
Exchange
Trading in securities in this mar.
ket is steadily increasing. and the
prices realized for unlisted stock
show less depreciation than Nigh
have been anticipated under such
extraordinary circumstances. Thf
fact will tend to give confidence ii
security values generally. and
should be material element O
support when the Exchange is reg
ularly opened for business. 1t i
questionable now whether Europ
would make New York wholesale
dumping ground when this Exchange
Is opened. Europe Is becoming ac.
cuatomed to war conditions. Conf
dence is gradually rcyiying, particu.
larry in London. Pressure there t
sell must have diminished, and buy
ors in Europe are certainly more
numerous than six or eight weeks
ago. There are evidences of consid.
cable money awaiting investment In
London, and it must not be forgotten
that American stocks are now the
best and the safest In the world
This fact alone viii prove an i'm
portant element Of support both a
home and abroad in case of liquida
ton on large scale was to be re
sumed. Among the elements O
strength is the continued growth O
our foreign trade. Both imports an,
exports are rapidly returning to nor
NAL proportions, in spite of the re
stiictions upon German, Austria,
and Russian commerce. In al
probability we shall soon have
liberal excess of exports which wi
tend to offset foreign sales of securi
ties and will render an outwar
movement Of gold more difncult
The war cauPht us with large fol
ciTn Indebtedness, the result {
small expo Is and the return {
American securities. Ordinaril
this could have been settled by on
shipments of wheat and cotton, BIZ
the interruption Of cotton export
seriously complicated the situation
This difficulty, however, Is now in
fair way Of being successfully met.
TIE home monetary situatio
shows signs of lessened strail
Credit is being contracted, or. MOI
properly speaking, conserved, tt
effect Of which is to impose consider
able restraint upon trade and entei
prise. As q result The public
eeoDomi2ing, which further lesser