The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-20

Opening of the Exchanges

A particularly gratifying fact IN
connection with the Inauguration OF
the federal reserve system and the
opening of the New York cotton ex-
change is the satisfaction expressed
by leading New York newspapers that
have not been in the habit of taking
hopeful view of the financial situa-
ton.
The Wall Street Journal refers to
the hearty support and cooperation
extended the federal reserve banks by
the national bankers themselves"
This cooperation, it is pointed out,
was most marked in New York city,
where the banks were "unstinted in
their contribution of gold in making
initial payments into the new instr
tuition" The Wall Street Journal then
goes on to say:
Thus, it can never be said that
the federal reserve banks were
hampered at the start. despite the
fact that they opened their doors
Tor business in the midst of the
greatest crisis the world has ever
witnessed. A few months ago the
- difficulties confronting the finan-
cial situation on account of the Eu-
ropean war looked we'll night hope
less. But little by little they have
been Strengthened out What re-
accomplished with little embarrass-
nent, and the federal reserve banks
can now contribute their support
The Wall Street Journal, in another
article full of optimism, remarks in
part:
Mr.. warburg says November 1s
is another Fourth of July to the
American people. Is it not also this
year the beginning of pre-
Thanksgiving week? The Inaugural
tion of the federal reserve system
seems like the first dawning of
light through the clouds and dark
ness that have been round about us.
In lesser degree this was added to
by the successful reopening of the
New York cotton exchange. The
crop situation also reveals another
silver lining to the clouds that
must inspire hope and confidence.
Final yields have not been def
nite1y announced by the govern
ment, but preliminary returns re-
veal an enormous addition of new
wealth from the soil. There is
wealth in the abundance of con-
4t..Qxr
~ economist. and the people whose
food supply is assured. Measured.
by its cash value, this is one of our
greatest harvests.
Perhaps the devoted militarist
would rather fight than eat, but eat
he must. 1t is a lamentable fact
that Europe is short of food crops,
and must buy elsewhere But 1t is a
matter of satisfaction that we have
an abundance to sell From the
greatest wheat crop this country
has ever produced sufficient can be
exported to add considerably more
than $500 100000 to the foreign ex-
change account
Agriculture is our basic indus
try. When that thrives, business has
good reason to feel confident. Proof
is indubitable that it is thriving
this season.
The New York Sun, which does not
often find anything to approve in
democratic legislation at Washington,
says: "By far the best day business
has seen since the war began was
Monday, when important steps to-
ward the restoration of normal con-
ditions were taken with remarkable
smoothness. The opening of the new
federal banks increased the feeling OF
confidence, but that was foregone
certainty. The encouraging thing was
the reopening of the cotton exchange,
(which took place without even a
furry"
The successful opening of the cotton
exchange has led to the hope that the
New York stock exchange will soon
resume operations. The governors of
the exchange were wise in closing that
Institution when they did. Europe
would have dumped its American Sc
curities suddenly on New York, and
the result would have been disastrouSs
- l.