Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-26
TALK OF EXCHANGE
REOPENTNG STRONGER
THAN EVER BEFORE
Conditions So Much Better
That Six Weeks Hence
May See General Resump-
ton of Active Trading.

skies which forecasts resumption of
normal conditions earlier than has been
generally looked for. The most inn
portant step in this direction, and one
which has had Il material effect in
strengthening the situation everywhere,
was the decision of the New York Stock
Exchange Committee to permit trading
IN unlisted securities at moderate con-
cessions from the closing prices as of
July 3O the last day on which the ex
changes of the country were open.
The original restriction about not per-
hitting sales under those prices was
made as to prevent, as far as pos
sbe, the liquidation which, it was gem
erally believed, was to be expected be-
cause of the war situation abroad. This
rule continued in force for more than
six weeks. In the meantime, there has
come satisfactory clearing of the
foreign debt situation and danger of
Iiouidation while it is still apparent is
not so pronounced as 1t was when the
order to close the exchanges was given.
wave of optimism said to be develop
Ing throughout the United States gave
rise today to the impression that the
way is being cleared for the reopenng
of the New York Stock Exchange, the
Consolidated Stock Exchange and also
the COTTON EsSCllHHSb IL may De DOSSlDlt
TO reopen them, especially the first named
institution, by November 1, provided the
Federal Reserve Bank is working by
that time.
The announcement that dealings in un-
listed stocks at moderate concessions is
believed as the first step that ultimately
may lead to the resumption of regular
business on the exchange.
officials of the exchange are feeling out
tie financial sentiment of the country
They are also sounding the loan situa-
ton and testing the investment demand.
1t is said the financial machine is be-
ginning to move, and that the situation
Is beng developed under careful treat
ment.
RELIEF BEING GIVEN.
Bankers here today expressed the opin-
ion that the steps taken by committees
here and in New York that have been
formed to supervise the trading situa-
tlon would do much to afford relief to
financial conditions generally. The fact
that trading may now be done in stocks
and bonds not listed on the exchange
at prices q few points below the July
closing, when approved by the commit>
tees, makes it possible for issues to seek
the new level bases that must be en-
pected when full resumption of trading
takes place.
No one denies the possibility of a heavy
Offering of European securities as soon
as the necessary mediums are made avail
able for their disposal. Each day that
the exchanges are closed, however, lessons
the amount of foreign selling that may
take place.
The present war crisis is teaching
Americans the advantages attached to Il
central bank in country's financial sys-
tenn The efficiency and resources dis
played by the Bank OF England, in ham
ding the situation in Great Britain, COM
mandS admiration everywhere.
In lieu of such an institution we have
developed a spirit of cooperation among
the national banks which has helped
materially in meeting the emergency.
While the Federal Reserve system Is not
yet in operation it is hoped to have it
fully working by the middle of October
The Federal Reserve Board has been
fully organized and its advice and in
fuence have helped much in solving the
various monetary problems presented.
Under the new system we shall have
y banks of concentrated power. This
should permit greater unity of action
than heretofore.
RESPOND TO LOAN CALL
The banks and trust companies of New
York city responded Loyalty to the call
for a syndicate to handle the new mu-
nicpal loan of $lOO, 900 600 provided to take
care of the city's maturing loans abroad |
Public offering of the loan has been de-
cded SUCCESS. although the details of
oEersubsCription have not become avail |
able to outsiders. \ very large subscrip- |
tlon response came from small investors !
10 whom the per cent. interest and the |
absolute security of the loan proved at |
tractive. Institutions and investors in |
the interior have taken large amounts, |
and TO this extent the New York banks |
Will no relieved of drain on their gold |
reserves which 1t is desirable to build up |
as fast as possible But at any rate, |
English and other foreign holders of the |
citys maturing obligations who have not |
chosen TO extend their old loans into the |
one, two and three-year maturties nelly |
provided, are sure of payment in gold.
y further guarantee of the payment |
OF all our debts abroad In gold is fur
hished by the banking pool which has
been organized to provide $lOOOOO,OOO i'm |
gold in case settlement, i'm whole or in
part cannot he effected in bills of ex-
change The result OF the two opera
lions is To provide gold fund of $780,
10000 with which TO settle our accumu-
lated adverse balance of trade. This
should certainly reasSurc foreign cred |
ilOFs and help i'm ameliorating the for
eign position. We are already finding |
some of the most conservative London
banks willing to renew American ma
Turtles of banking concerns, and tho
cooperative action of our financial in
stitutons in establishing the Sl50OO0,0no
gold credit referred to ought to increase
this disposition of London to make or
renew loans on this side.
OUR GOLD HOLDINGS LARGE.
Owing to the close business relations
between the United States and Great
Britain, preserved in spite of the war
II would not be to Englands own best
interests to drain us of gold to an extent
that would embarrass interests here Co
operation and mutual forbearance is
policy that will work out best I'm the end
for the nations especially having in mind
the relations that will exist when the
European struggle is over
Our total holdings of gold are larger
than those Of any other nation-abOut
81 $50, Geo, according to the latest avail
able United States mint repOrt-but the
difficulty is in mobilizing them under the
old banking system.
The "buy-a-bale-O If cotton" movement is
meeting with so much favor that 1t
really has become a factor in the posi-
tton of that commodity. now suffering
from an absence of the usual purchases.
individuals and business concerns all over
the country already have made purchases
st ten cents a pound to the extent OF
tens OF thousands Of bales, and the move
fa I'M