The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-21
NEWS
AND COMMENT.
Bond Dealings Reflect Official
Change of Plan for Open
Trading.
RESERVE BANK AFFAIRS

Business in bonds lost some Of it's brisk
ness and prices lost some Of their frinness
yesterday In response to the official con-
clusion announced that there were diff
cultles in the way of an Immediate reopen
ing OF the bond department OF the Stock
Exchange. In foreign exchange circles
there continued to be talk about the APP
pearancc of European offerings of Amcrl-
can investments for salo here, and nat
urally Wall Street assumed that the dis
closure of potential liquidation had checked
the movement for a partia. restoration OF
the open bond market In any event the
dealings yesterday were bound 10 reflect
official vacillation and the suggestion of
fresh uncertainties. although the essential
facts remained on which the movement
for broader dealings was started.
Moreover, the inevitability of foreign
liquidation has long been counted upon.
The prospect of 1t affords an excellent
reason for restoring organized market
facilities in order to allow the accommo-
dalton of values to the necessities OF war
to begin and to become continuous.
stu the iotation OF the British war loan
might accelerate realization from London
In order to permit subscribers to take up
their commitments with the proceeds os
American securities. Report had II that
this was one Of the matters which induced
certain representations TO be made by the
Federal Reserve Board to bankers here
advising delay in a further release OF the
securities market from restrictions.
The fact that two members OF the
Federal Reserve Board were in the Wall
Street district during the day was taken
to indicate that Washington ideas and
Information would be compared with Wall
street knowledge and opinion in regard
to the problem of Stock Exchange reopen
ing, and this feature OF the visit OF Mr..
Warburg and Mr.. Harding attracted far
more attention than the official errand
which brought them here. IL may be
that the cotton pool will yet amount to
something. New York bankers will fulfil
all the agreements they have made on Its
account, but local interest in the cotton
pool is very slight. while interest in the
Stock Exchange question is immense.
A variety OF routine items made up the
bulk of the days budget OF news bear
ing on values Cotton showed some rally
ing strength. but wheat and other cereals
were rather heavy. The negotiation OF
more call loans at A.. per cent. was re-
ported and the circumstances OF the bank
ing position indicate that money is fast
In the way OF becoming a drug unless the
supply OF IL encounters such demand
as the resumption OF more or less regu-
lar trading in securities would create.
A ready market is being found on 5k
per cent. basis for the new issue OF New
York Central equipment Az per cent.
notes A feature OF the investment situa-
ton is the offering of 100000 of Nor
wegian Government per cent. two and
three year notes. and in banking quarters
II Is said that additional borrowings are
likely to he put Trough soon for other
foreign Governments. Banking announce
ment was made that the Austrian Govern
ment AZ per cent. notes, which We're
placed here two years ago and are due
next January. would be paid. The foreign
exchange marke. was distinctly firm.
French exchange being particularly strong.
Estimates of cash changes by the local
banks attracted very little notice because
of the great change which will be made in
to-day's bank return by the alteration OF
reserve requirements. The Clearing House
has done wen TO issue its warning that the
exhibit OF n surplus reserve OF 500, 600. 900
or so will not mean that the banks have
suddenly become possessed OF a huge
amount OF idle funds, although as re-
suit of statutory reserve reductions lend
ing power will be largely increased In the
future
Federal Reserve Bank notes are getting
into circulation. and although the move
ment is a little forced just now the effect
of their issue should be to accelerate the
retirement OF emergency currency and
Clearing House certificates. With regard
to the Federal reserve banks. the protests
which are coming from the South that re-
discount rates have been fixed too high
are worth remarking. Unless there has
been a good deal of past misinforma tion
about tho money market centres from
which these protests come the reserve
bank rates would permit a good deal OF
rediscountng.
The trouble probably is that in some OF
the reserve districts there is n large lack
OF power approaching anything like
eligibility for rediscount under the pro-
visions OF the Federal reserve act as in
terpreted by the Federal Reserve Board.