Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-09-29
FINANCIAL GOSSIP

| (New York Times Financial Review
New York, Sept. 28.-Real progress
| was made last week toward a resump-
ton of trading in stocks. So long as
all trading was prohibited at prices al
all under the final prices Of July
| market, no flow and reflow of the kline
which encourages the absorption Of Sc
curities by applying from day to day
the law Of supply and demand.
| That has now been modified in I'M
! listed stocks to the extent that COM
mittee has been appointed to pass or
trades at lower prices than those OF
July 80. This had previously beer
done for bonds, and 1t only remains
stocks. That is likely to be done be-
fore the end of this week Such g
scheme is very far from a free market
| but it is a step In that direction anC
as such commends itself
! The whole business world, under the
conditions which now exist, has an in
terest in the resumption Of trading ir
! securities, for so long as the market fol
stocks and bonds are CONCEALED loans
cannot easily be made on them anc
i loans already made on them are not
| liquid. That fact stands in the way OF
! the free flow of credit and that has its
disadvantages for all classes Of bor-
| rowers, and is not confined by any
means to would-be borrowers or
| stocks.
Has Effect on Loans.
There is now no call money market
and there can be no call loans. or
| stocks can be liquidated If need be
Under the banking custom Of this
| country the call money market has
| been important elemtn in the bank
| ing machinery and the sudden stop
page Of that part Of the machinery
has necessarily had effect upon the
, whole system, felt more in some parts
of it than in others, but influencing II
all. The effort to resume trading in
stocks and bonds therefore is by nc
means Wall streets affair alone. 1t is
| regrettable that we have not had q
call money market based on CONNER
cial collateral instead Of on corpora
ton securities, but in the absence OF
that the stoppage of call loans or
stock exchange collateral has resulted
in the withholding from the market Of
funds whose employment would ir
turn have released other funds for com
mercial uses. In due time under the
operation of the federal reserve bank
system there should be established g
market for call loans secured by bills
which for the investment of bank funds
would be preferable to call loans or
securities
Improvement in airy phase Of the sit.
uation facilitates improvement in al
other directions. While plans are now
being laid to establish freer trading
in securities the banking position al
Ithis center despite the gold exports is
improving through the reduction ir
loans and the inflow Of cash from the
interior.
The further development Of these
improvements will rake security trad
! ing easier and will exert favorable In
fluence upon interest rates which viii
be felt in all departments Of the money
market. The exchange market should
be greatly benefited by the working
of the $100,O00,000 gold fund plan
which was given final approval las
week by the federal reserve board.
New York, Sept. 2s.--With the $780,.
900, 900 gold pool for easing our inter
national money market formed, anc
with New York City's $sO,O00.0OO ma.
turing European Indebtedness caret
| for, Wall street bankers turned theil
attention this week to solving thu
stock exchange problem.
From the highest authority it wa.
| learned that plans are now beint
formed to open the stock exchange. VI