The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-13
FINANCIAL NEWS
AND COMMENT
Wall street Furnished With
Fresh Reasons for Recovery
of Confidence.
GENERAL EXCHANGE DROP

III variety OF ulTeCllOUs yesterday I'M
portant announcements were furnished TO
recovery OF financial confidence. Wall
street Is perhaps prone at the moment
to exaggerate reasons for optimism. but
good deal can be endured in the way OF
recoil from depressed sentiment, even
though the rebound should he carried to
an extreme which insures reaction.
As result OF several developments
there was more talk at the close Of BUSH
ness last night than has been heard in
"A long time regarding the possibilities Of
stock Exchange reopening. This need
not he taken seriously, as indicating any
definite reasons for believing that regular
dealings in the organized securities
market are likely 10 take place in the
near future but the matter is worth re-
ferring to as showing the impression
which is being made on the financial COM
munity by the latest occurrences bearing
on values.
There are some things in the prospect
which must become actual fact before
! banking interests will incline to indOrSe
a movement Tor the reopcning Of the
stock exchanges. London preparations on
! this score will have to be carried further
and evidence will he awaited OF the for
B tlBu hlllluut lONhIu AlitIlNbH tf'uA iNlt0s
Tho Interstate Commerce Commission
must make its ruling in the Eastern rate
case and so on.
At tho same time the foreign exchange
situation favors decidedly more hopeful
views OF the stock market outlook, ard
the tenor OF financial Judgment on the
position OF security values is suggested
by the removal OF all embargoes against
! transactions in unlisted shares. The
Broad street curb market will not make
its formal reopenlng until Monday, but
for all practical purposes trading was re-
sumed yesterday.
The supervising authorities OF the Stock
Exchange decided sensbly enough that
there was no valid reason for refusing to
give publicity to prices for unlisted stocks,
and as soon as this fact became known
Broad street traders gathered In growing
numbers and before the end OF the dag
a good deal OF business activity developed
at strong prices. At the same time the
irregular street market for listed stocks
displayed similar further Improvement.
and most gratifying reports were given
of the situation IN investment securities.
which are being bought and sold under
official supervision.
In addition to the recent happenings
in the money market and elsewhere, which
have helped TO promote return of con-
/ fidence OF the kind which wall street
| reflects, there were very reassUrinG factors
yesterday. one Of these was the statement
| issued by the Federal Reserve Board In
regard to the redlscount operations OF the
Federal reserve banks, which open for
business next week.
The regulations therein contained made
most favorable impression respecting
{ the policy which Is 10 govern the admin
istration OF the new banking system. The
impression was all the more marked be-
cause the expressed judgment Of The board
{ tn u IA the kind Of
! opinion and dictation which bankers have
been getting from the Treasury Depart
ment.
What constitutes commercial paper eli
gibe for rediscount IS defined with a view
to accommodating existing customs to
/ changing conditions, but the board makes
! It rather clear that the commercial paper
of the future Is going to consist OF real
] bills Of exchange than which no more
desirable reform could be effected In com
merclal and banking practice. What the
board has TO say about the dangers OF
| cheapening credit is a most satisfactory
exhibit OF the frame of mind OF the con-
| trollers of the new financial machinery,
and satisfaction Is heightened by the ef-
fort made TO prevent speculative transac-
tons from becoming involved In its work.
ings.
OF the broadest kind OF Significance was
the violent decline which occurred In the
| foreign exchange market generally. Ger
man, Austrian, italian and Danish remit
| lance all sold at extraordinary discounts
| from normal figures. French exchange
practically reached the normal. and under
the circumstances It could be said that
!, sterling bills. with demand at 4s7 and
cables at 4.S7's. are to all intents and
| purposes selling at normal rates
There were heavy offerings OF sterling
exchange, which are In part the conse-
quence of information that the bankers
in charge OF the New York city loan
operation had completed their exchange
arrangements. II is also Increasingly OBJ
vious that London, where money Is a
drug, is more than anxious TO extend
credit here, where credit commands a
better price.
II is too soon to say that the course
OF foreign exchange denotes a complete
recovery OF the financial equilibrium on
this side. Further downward movements
OF sterling and other forms OF remittance
will cause banking and business disturb
ance analogous TO the arrangement re-
sulting from abnormal advances. Never
theless Il Will he a disturbance easier 70
handle, and only optimistic differences are
possible from the evidence that the inter
national money market Is favorable 70
American finance and commerce and not
adverse.
-An~Axy rr,DD