The Cairo bulletin., 1914-10-26
CLEWS SUGGESTS
INTERNATIONAL
CLEARING HOUSE
Which Would Do Away With the
Sending of Gold Back and Forth
at Short Intervals.
LONDON MORATORIUM WILL
EXPIRE ON NovEMBEB 4
Il is Believed That it VIII Not be
Renewed-Conditions In.
prove in London.


tinues to center upon the financial
readjustment to the war and the
early reopening of the various stock
end commodity exchanges Events
in this direction con tinue to make
satisfactory progress. Cable advioas
indicate that the recpening of the
London Stock Exchange is not far
distant, and 1t is believed that the
moratorium there, which expires
November 4th viii not be renewed.
Prospects for opering the New York
Exchange should be eorrespondin gig
improved.
The country Is now learning the
usefulness of much abused insti-
tuition. So long as the New York
Exchange remains closed, no gem
uine test of security values IL pos.
sible, and buyers and sellers alike
are deprived of the advantages Of a
free and open market. Owing to the
great progress made in netting a
highly ctitical situation naturally
lessons the reason why the Ex-
change should not soon be opened
Of course there is a risk from the
so-called dumping of American
stocks on this market. This dan
ger has doubtless been largely ex.
aggerated, but has certainly been
much diminished by recent adjust.
merits The percentage of American
stocks held abroad is very much
smaller than it has been for many
years. Tho Balkan war induced Il
heavy return of our stocks, and thi+
movement has continued with more
or less freedom ever since. The
larger proportion of what remains
is doubtless made W OF high grad
long term bonds, such as arc not
likely to be sold under any circum-
stances. Moreover. the improved
financial conditions in London would
tend TO discourage forced salos, es.
recially as prices have already de.
clined considerably since tho war
began. Though not undertaking
the risks of reopening the Exchange,
it should be candidly pointed out
that these dangers have greatly din
inished, and those which remain
must be faced. Such risks could b.
still further overcome by a gradual
opening of the market; IS Cor in
stance by initiating call for cash
only on certain clases of domestic
securities and gradually admitting
international ones later on. A pro.
cess Of this kind would tend to es
tablish a conservative market ant
also give valuable indication Of
the natural level Of security values
under the new conditions.
The opening OF the Cotton Tx
change is also a matter OF vital i'm
portanee, and depends mainly OF
| the creation of successful plan fct
financing the present crop, whicI
the south seriously needs. Fortu
nately all schemes for Government
assistance have ben voted down b,
| Congress. Had the Government Sc
the precedent of helping cottor
growers it would some day hav'
been Obliged to help the producer
of wheat, corn or cattle; and /
could be just as logically required
to give financial aid to cotton manu
facturers, steel manufacturers
bankers, or others who happened t;
be In financial need through circum
stances which they could not fore
see. For the Government to have
undertaken to finance the oottor
crop would have been most dan
gerous and insidious precedent. II
all probability some satisfactory
Concluded on Page Six