The sun., 1914-09-13
Several Plans, Each of Them Offering
Large Possibilities Of Relief and
Success Immediate Available


take over the whole amount at once,
but only as fast as they could he dis
posed Of. still II the syndicate included
as participants all the leading invest
ment banking houses. with their cnor-
nous clientele. there would be no diff
Guilty in placing at once the whole
block.
with the danger of foreign lquida-
ton removed our Stock Exchange
could reopen without fear of being
swamped. AS an additional precaution,
however. the Stock Exchange authors
ties might provide that for definite
time there should be no selling on the
exchange on foreign account except
through or on behalf of this bankers
syndicate. Among others interested in
the formation OF such "A plan is Fred
II. Newhall OF II. l.. Day & Co, bankers,
of Boston. Perhaps | can best describe
a suggestion for a quasi-Government
pool by quoting from a private letter:
1T has been suggested that the Gov
ernment provide for board Of trustees
appointed by the President. which shall
have the privilege of issuing and selling
in 800 pieces interest bearing certif-
Gates TO a certain amount and TO use
the proceeds for purchasing such for
cign holdings of American railroad
securities as may be offered during the
present war at figures below the clos
ing prices OF July 81. Some persons
have advocated that IL necessary for
selling these certificates the Govern
ment could also appropriate sufficient
money to provide an equity Of 10 per
cent. or more, but do not think this
would he needed.
These certificates could bear fixed
per cent. interest until the securities
have again been sod and the trust dis
solved with the understanding that the
Government should receive the excess
income. II any, and make up the deficit
in interest, II any: or. If thought best,
the entire income received from the
securities could be given TO the ccr-
tificate holders without involving the
Governments in any way in the payment
Of interest. II could also he stipulated
that the Government should render this
aid for only such a period as stock
dealings are limited to cash sales. As
to the question II how both the Gov
ernment and the certificate holders
could be insured against loss of princi-
no such loss II enough securities are
purchased, and it is generally recog-
niZed that the Government will see the
trustees through to the finish"
Whether any such action by the Gov
crnment would be wise | do not know.
but | do say that. although business
men may talk all they wish against
Wall Street. stock exchanges and
bankers, there will be but little improve
mcn' in business conditions until the
exchanges open, and this cannot be
done until some provision is made for
taking care Of or placing an embargo
upon the avalanche OF selling orders
which threaten to come from Europe
The financial system Is not dependent
simply on the amount of money avail
able, but also on its free circulation
The Government has provided means
for increasing the available amount Of
currency. but before manufacturers and
business men will receive the benefits
therctrom, must not the Government
provide for its free circulation through
the removal of the great fear that
Europe may flood us with securities?
tn order To avoid gold exports, il could
be expressly stated that such securities
as these trustees may purchase will be
paid FOR only in merchandise and
credtSD
believe that the announcement Of
any pool would lessen the amount of
securities which would otherwise he
sent TO this country. while there should
be good demand for participation in
the proposed pool. owing 10 the profits
which should accrue to the holders
thereof after the war is ended and the
pool dissolved Every one knows that
the present unsettled conditions are but
temporary and that normal business will
some day return. At present, however.
no one dares move for fear, but the
brokers, without incurring any apprecl-
able risk could step in to remove this
fear and give confidence to buyers and
sellers, loaners and borrowers, and TO
the workers and employers of labor.
Whatever arrangements may hc
adopted for opening the stock OK
changes, there Is no doubt that pool
of some kind and to some extent should
he organized. feel, however. that
there Is no need Of such pool peg
ginG' prices at the close of July 80 r
believe that II a powerful pool were
organized and 1t was announced that
all stock would he purchased at saw
ten or twenty points below the closing
OF July 80, tho same good result would
he accomplished and this pool would be
required To purchase much less stock.
The main purpose of pool is to give
confidence and assure people that
anxious buyers are awaiting prices to
drop to certain point where all offer
ings will be rapidly absorbed. If the
existence of such "A pool is thoroughly
recognized prices are liable not to drop
to the pools figures: while the conf
dence produced will develop many new
buying orders. Such buying orders
often lead to an upward movement I'm
prices and may be the beginning of
bull movement.
Group 2-Another group of sugpes-
tions calls for the use of certificates of
ownership which are designed To con-
fne dealings to United States citizens
The eNponents OF such plans insist not
only that this is a wise policy to pursue
but that strict neutrality demands the
enforcement of such policy. Por-
sonally | believe they are right, for I |
see no difference between buying securi- |
ties of Germans and buying shlps of
Germans. and II is known that the
allies object strongly to doing the
latter.