The Washington herald., 1914-08-02
WALL STREET GOSSIP.

Many Wall Street banks are refusing
to certify checks on day loans unless
secured by adequate security. While
there Is not 50 much occasion for over
certifying, now that the stock exchange
is closed, this does not obvists houses
applying to their banks to pay on other
loans
the large banks in the fnshcial district
that have made no change insthe.r deal
ings with stock exchange customers
Among these is the First National Bank.
which continues TO certify as heretofore.
It will be recalled that the National City
Bank some few months ago discontinued
the practice OF clearance loans unless
secured at the time.
When requested for a statement re-
EardinE the events of the Day Presi-
dent E. K. Gone Of the cotton exchange.
said:
In view of the complete demoraliEa-
Sion Of the financial world. the board OF
managers Of the cotton exchange saw no
course open except TO order the closing
'of the exchange We felt that the oppor-
tunity should be given to the members
and the cotton trade in general TO read
Just things to the present crisis The BIv-
'erpooI cotton market, owing 70 the regu-
lar bank holidays, viii not reopen for
business until Tuesday and 1t was, there
fore, deemed advisable to close this ex-
change until that time.
II believe that all the ACCOUNTS Of mem
bers are reduced to minimum. and
that everyone will be fully prepared 70
~. arfRaa thu
resumption OF business next Tuesday.
therefore see no reason at present why
business should be suspended beyond
that time.
Il do not believe there will be any
other failures as q result Of the suspen-
sion Of s. H. p. Pell & CO.. and my un-
derstanding is that nearly all Of the
accounts involved were evened, up in
Fridays market"
A prominent copper interest says that
those ill-advised optimists who look up
on theSoeuaand which would be- created
for copper for war purposes, In the event
of general outbreak of hostilities
abroad, as a bullish argument on the
metal and stocks, may be classed with
those quasi-economists who argue that
a hailStorm which destroys thousand
window panes is a blessing since IL pro-
vide occupation for an army Of glaziers.
That there would be an immediate de-
mand. even a scramble for copper In the
event Of European war, seems probable,
but the after effects Of the prostration
Of the industries which in times Of peace
take the bulk OF copper produced. would
far outweigh any war demand for the
metal
Discussing the present position Of cop |
per, the head of one OF the worlds |
argest selling agencies said:
The future OF the copper market hangs |
upon whether there will be war or peace |
II there Is war we look for a heavy de- |
nand from the Continent and tbs coun- |
:ry would benefit chiefly from. that de-
nand. The problem which we are con-
'idering Is how to get the metal over TO |
Europe in the event OF war. We have the
'reater part of the worlds stocks Of cop 4
YER in this country and the world would /
iave to look to US to supply any sud
len need.
There Is a broader view TO be taken /
4 the situation, however. q view which
oes not take into consideration the tenn
'orary advantage Of q demand which
would spring up for copper for war mum
lions. War IN Europe would mean that
would stagnate. employees OF
,rass mills and electric manufacturing
'lants would leave to Join the armies and
he legitimate copper consumption. by
hat mean the consumption Of copper
s in times Of peace, would shrink to ex-
remedy small totals.
Copper for war purposes is a new out
ct for the metal, but one which think
he trade would prefer were not opened
-. OF course the. ideal developments from
he sellers point of view would be to
ave the situation become 50 acute that
IL the nations would buy to equip their
Irmies and stock their arsenals, and
hen have the turmoil simmer down.
hat. however, seems too much to ex-
'ect."