Evening star., 1914-11-08

1t may be that between now and the
1st Of January there will have been
sufficient favorable happenings to
cause a sharp upturn Of values for Sc
curities to nearly the levels of July 81.
Then again there may not have been,
and the chances are for the latter.
II New York is to walt for London
the year 1915 may be we'll upon its
way before there is actual resumption
Of trading on change. although condi-
tions may force security holders to
liquidate at a price on the open mar
ket. even though irregular. London
will probably not open until there is
something definite in sight forecasting
the outcome of the gigantic struggle
now going on. People on the other side
may be forced to sell stocks. American
shares, and 1t can be done in modera-
ton.
It is folly for brokers and bankers to
sit tight and hold fast by the values of
July 80, 1914, in the hope Of being pulled
out by luck. They should be making
every effort to get the loans sufhcientiy
reduced to be ga. e and it should be sat
isfaction to owners Of equity in collateral
held for loans to lessen their obligations
Then if the good news and the advances
come they will be better off, while If 1t
worse off through reducing obligations as
much as possible.
Bankers have been lenient about press
ing and they have acted as they should,
but at the same time the diplomatic
pressure for more margin would be moth
| ing more than self preservation.
Shareholders would rather have their
| investments in corporations that carry
their assets at a fair valuation on their
books No man in business can fool him.
| alf hv ia tn l.
ues with lessening of book values
"Let in the Light"
This caption is a quotation from the
Wall Street Journal with reference to
publicity in banking affairs generally,
and the article itself is very interest
| ing reading, SO much so that it's repro
duction in part is not out of place.
What better time than the present
| for some really great banker to lead
| the way in publishing complete
| statement of condition, in response to
the last bank call?
| His institution should be able to
| make public its business operations
during the present financial stress, in
way SO effective as forever to put
| a quietus upon charges by the Treas
ury Department 1t could be shown
| that the bank, even in sinful New
| York, had not been charging exces-
| sive interest rates, or discriminating
| against solvent borrowers.
| Such a report also would be an un-
answerable reply to insinuations made
in various quarters, at Washington and
nearer home. that the banks are keep
ing the New York Stock Exchange
| closed for the selfish purpose of a
creditable showing over the end of
the year.
This is a question which has not
been faced. but it will have to be met
| some day.
| Wants to Know.
| A correspondent asks this query:
! A man buys. say. fifty shares of Steel
( Common, on a ten-point margin. The
period of exchange suspension. now on,
| finds his margin exhausted. In the
event of failure Of the house carrying
the stock, would the trader lose more
for the full valve of the stock, and
would he lose that also?
Best possible information is to the
effect that the trader would be subject
to suit for recovery for the purchase
price of the shares, less the margin de-
posted, plus interest.
Having made full payment, he would
be entitled to recover his stock.
Brokers hold stocks bought on mar
gin for the buyer. Custom is to sell
when margin is exhausted. on refusal
of trader to deposit increased margin.
trader being liable for loss
Failure of bank does not cost bor-
rowers on collateral their securities:
they simply have to meet their loan
and withdraw their collateral.
| Government Finances.
Probabilities of large decreases in the
government revenues during the current
year suggest that the war tax measure
will fail to care for the demands Of the
various departments.
That the tariff will yield very much
Iless than during the last fiscal year -