Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-19
WEEK END BRINGS
BETTER FEELING In
FINANCIAL MARKET
New York Investment
Houses Will Again Solicit
New Business and Phila-
delphia Will Follow Suit.


general disposition in financial circles to
r,yard the situation as exceedingly favor
.hie Events Of the last few days have
aone much to clear away the clouded
o,,rosrhere, and conditions give more
,ron,ise of an early return to normal
.hon at any time since the great
european struggle began.
1ondon has been particularly active
4, ,nstalling confidence, and the better
ceiling there, Influenced largely by reports
"A continued victories for the British and
rrsnch armies, has been reflected strongly
n the markets In this country. Brokers
,n the metropolis are still talking OF an
.srly reopening Of the Stock Exchange
,here. so marked has been the general
ir,nrovement. The exchanges in Sydney
,,d Adelaide will reopen for business on
Monday. and there is chance that the
nts,bourne stock Exchange will follow
suit some time later In the week.
Collapse OF the foreign exchange mar
ro. has helped materially In the general
,eadjustment. 1t touched lower price
level yesterday than at any time In six
weeks, the principal influence being the
,rccessful settlement of great part of
This country's foreign indebtedness. This
was helped along very materially through
the fotation of the Now York City $780,
cO.Oo bond and corporate note Issue.
which. it was announced today, had been
oversubscribed. The break in exchange
indicates a return to more normal condi-
,,ons in our trade relations with Europe,
sspecially Great Britain. Exports have
been growing to remarkable extent.
Demand Sterling was firm today and
rates recovered some of yesterdays de-
cline, ruling strong at 4.soh to 4961s,
There was a fairly brisk demand, even
at the higher rates.
WILL RESUME BOND SALES.
The Philadelphia Stock Exchange Com
mttee of Five and the Committee on
Unlisted Securities have agreed on plan
for the broadening of local bond trading
by which bond houses will be permitted
to solicit business.
An announcement to this effect will be
made at the Stock Exchange on Mon
day, and the Bond Committee will also
send out a letter on the subject. The
plan has the sanction OF the Clearing
House, and similar action has been taken
in New York.
Restrictions on trading will be relaxed
70 as to allow the sending out of bond
statesmen, issuance of circulars and other
advertising. and solicitation of business
on the basis OF prices approved by the
committees. sales to be only Of bonds
held by the firms offering them, and
only on a cash basis.
Announcement that New York invest |
ment bankers had decided to again put |
through sales on large scale and that
Philadelphia firms would follow suit next
week gave added strength to the situa-
ton. A committee will meet in New |
York daily TO pass on all sales and their
restrictions will be stretched so as to per-
nit transfers at lower prices, If neces-
sary, than those which ruled when the |
Exchange closed July 30.
This indicates very clearly a final re-
turn to more normal conditions, since for |
weeks the brokers have been restricted |
In sales to the last official Exchange |
prices. There is a possibility that SINH
lar ruling will be made here. At any
rate. brokers and bond statesmen are
brushing the accumulated dust from their
desks and chairs and are getting In shape
for more active trading-all of which |
forecasts the return OF brighter situa-
tion.
after continued conference with the
Clearing House Committee and the Stock |
Exchange Committee of Five, makes the |
following announcement:
With the concurrence of the said com
mittees. 1t Is the understanding that |
dealers in bonds should be directly gov
erned by the following rules:
The sale OF unlisted bonds owned by |
The dealer; it is thought, but dealers
should be free to sell such bonds TO in
yestors.
"The sale OF unlisted bonds not owned
oy the dealer; all such proposed trades
should be laid before the Committee of
Seven
Ihe sale Of listed bonds; all such pro-
posed trades should be laid before the
stock Exchange Committee Of Five"
Is the general expectation that at
5he rate of progress being made in clear
ing the trade of open contracts requiring
International adjustment. the cotton ex-
changes of the country are likely to be
open TOT business inside of the next two
or three weeks.
THE GOLD pool. PLAN.
b. Forsan, of Chicago; A. II. Wig
Sh and Benjamin Strong, Jr., of New
iork' and Levi l.. Rue, of Philadelphia,
.trpresenting the committee appointed By
'onteFehce of bankers called by the
ssderal Reserve Board on September 4 TO
consider the foreign exchange situation
seterday conferred with the board in
sIHher consideration of their proposed
Rsh irs 10 create gold fund to relieve the
,,.,eIhatlonai no..lonai exchange situation. The
soil'tittee s'iittee originally recommen nded that a
s! sIta fund of Sl50OOO,OOO he created by con-
inipuuons from the banks of the country
cities N eeh''ai reserve
,.oh aston of New York in completing ar
SSWusements aSusents for payment of its maturins
sauons rs...ons and for the necessary gold
NJ 's'ahees ,s TO Europe relieved one phase
10 e situation and made it desirable
tgrther consider the subject and de-
Sasdas se what further relief, if any. was
,b ne bankers committee has considered
tSs, use.'elopments, and is Of the opinion
a a., u may be desirable to create such
,o luhd OF NOlO0O0OO 10 meet the situa-
tSa at present The board received
fos,,p S proposition. and the bankers win
fos for"Ilate tn a report giving their reasons
rsnost ans necessity of this action. This
siseras VIII be presented to ana con-
@''sa oS the board today.