The Washington times., 1914-11-28
THE STOCK EXCHANGE.

The opening of the New York
Stock Exchange for dealings in
bonds under certain restrictions,
which takes place today, will be
watched all over the world for a sign
to indicate how far financial recov-
cry has proceeded toward restora-
ton of normal conditions. Is the
world ready to resume business in
the regular way? Has it the re-
sources on which it can draw for
handling it's muddled affairs, without
scramble at every opportunity to
get gold, gold, gold?
Very much will depend, as to the
financial and business future of the
| United States, on the experience of
the New York Exchange. The Brit
ish fiscal embassy lately in this coun-
try urged strongly that the exchange
be opened, and gave every possible
assurance that British governmental
authority would discourage a dump
ing of securities here. 1t is unques-
tionably true that if the United States
is able to carry the burden of liqui-
daticn that will be cast upon it, this
country will stand higher in the con-
fidence of the world than it has
stood heretofore. We have been
looked upon in the past, and with
reason, as a foremost breeder of
panic, a business plague spot, a
menace to the balance and the Sc
curity of business systems carefully
and scientifically framed together
by other countries. But in truth we
have been blamed too much. If
other countries have found specula-
tion in Americans dangerous, they
have yet found it on the whole profit
able. Down at the bottom is the big,
pregnant fact that North America, es-
pecially the United States, has been
the most attractive and secure field
for investment of surpluses; and
that is exactly why the investments
have come here. We have paid bet
ter interest, the rate and security
considered, than others.
Moreover, the foreigners pay US
particularly high tribute just now in
their insistence that it is our duty
to open the exchanges and let busi-
ness resume its flow in all the normal
channels. For they are admitting
that, even in such a stressful time as
the present, this is the one country
where they have invested, from
which they believe they can draw in,
quickly and without severe losses,
the capital that they imperatively
need at home. That we are a bit
chary about returning it to them in
hurry is hardly occasion for sur
prise. We didn't get it all at once.
and no more did we get it as a favor.
We got it gradually, and we got it
because giving it to US looked like
the best business it's owners could
do with it. There would be no diff
ficulty at all about withdrawing and
repaying this capital at, say, the
same rate it has been invested here.
But Europe is not in position to
let us do it that way. She needs
money right now, needs it very
much. Our foreign security holders
are in exactly the same position as
the depositors in a bank who become
frightened all at once. They cannot
blame the bank if it is unable to
liquidate everything in a day and
pay its deposits. Neither are they
entitled to blame the bank for caus-
ing the panic; the depositors did
that.
If the tentative and partial re-
opening Of the Stock Exchange is
not taken advantage of by the for
eign holders of securities, to unload
in vast quantities in order to replen-
ish their gold stock from the great
American horde that all Europe OBJ
serves with longing eyes, the opera
tion will be to the advantage of all
concerned. 1t will stabilize general
| financial concerns of the whole
world, and it will give demonstra-
ton that our financial system is
now so well oganized that it is able
! to cushion a world-shock. But let