Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-09-08
FINANCIAL GOSSIP

Stock Exchange closed that $l0U,OOU,uVO
Of clearances and adjustments OF
business had to be settled before bust
ness could be resumed.
This has all been accomplished ex-
cept for about / per cent, or less than
S1,0O0,o00. This is In process OF ad'
justment, but, of course, settlements
with the suspended houses, S. Fl. r.
Pell e. Co. and Flower & Co., are diff
cult of conclusion.
In general 1t may be said that the
New York Stock Exchange has cleared
its sheets and Is now ready for buSi-
ness the moment commercial credits,
which have the right of way, have been
put in position so that business may be
resumed in the financial district In
usual course.
The arguments for keeping the stock
exchange closed while credits are being
readjusted and the exchanges OF COM
merce interrupted by the war are being
resumed is thus clearly set forth by one
Of the governors of the stock exchange:
THE stock exchange Is designed to
facilitate the exchange Of securities and
thereby assist in the creation Of new
enterprise.
1.-THE exchange of securities is an eco
nomic function which at this time Is in
itself Of secondary Importance, largely
because OF cessation Of new enterprises
ana because the IldTkcI IoT CTSOltS
must be undisturbed.
Any exchange now made would be
governed mainly by the necessities. real
or fancied. Of holders Of securities. This
would result in abnormal prices, which
are uneconomic, unethical and unjust
as the basis of settlements generally.
1T is precisely to prevent the en-
forcement Of contracts upon such
basis that inoratoria were established
in England, the continent and South
America.
"The New York Stock Exchange is
part Of the international financial
structure. One port of the machinery
cannot maintain its functions when all
others parts are stilled. In such situa-
ton large numbers Of innocent people
wholly unrelated to the war would
stand to be shot at.
What is Of vastly greater import
ance than the resumption of the stock
markets is the resumption Of an in
ternational exchange Of commodities
which are needed to maintain human
life. This is largely matter Of credit.
and until such ample credit facilities
are restored as will insure the free
movement Of an exchange of COM
modities. the stock exchange should
not by a resumption Of it's activities
hamper or restrict such movement"
New York, Sept. pronounced
weakness developed in the foreign mar
ket Saturday. with the most notice.
able feature the absence Of bids around
recently prevailing prices. The weak
ness Of the bid position is the most
important factor in the foreign ex-
change situation. Cables sold at s4.s9,
against SOP Friday, and were quoted
as low as 1881. Sight bills were
quoted at 4.97h, against sol Friday. A
plan for the relief Of the foreign. ex-
change situation was filed with the
comptroller of the currency by James
B. Forgan Of Chicago, chairman of the
special committee appointed Saturday
at the bankers conference with the
federal reserve board Comptroller
Williams announced that the FOrgan
report would not be made public be-
fore it is placed before Secretary Nc
Adoo on Tuesday. 1t is understood the
plan does not concern itself so much
with ways and means Of meeting the
maturing obligations to Europe as 1t
does with the actual transfer Of funds
between the United States and Europe,
Certain Standard Oil interest which
have large foreign balances in Eng
land, France and other European
countries and in South American coun-
A>.s 49,. A.