The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-27

IN THE WORLD OF FINANCE.
Interest continues to center upon
financial readjustment to the war and
the early reopening of the various stock
commodity exchanges" writes Henry
Clews. the New York banker. in his
current weekly financial review. and
ton continue to make satisfactory pro-
gress- Gable advices indicate that the
reopening OF the London Stock Elk
change is not far distant, and 1t Is be-
lived that the moratorium there.
which expires November 4. will not be
renewed. Prospects for opening the
New York exchange should be corre-
spondingly improved.
THE country is now learning the
usefulness OF a much abused institu-
ton. So Ing as the New York exchange
remains closed, no genuine test of Sc
curity values is possible. and buyers
and sellers alike are deprived of the
advantages of free and open market
Owing to the great progress made In
meeting a highly critical situation
naturally lessons the reason why the
exchange should not soon opened
OF course, there is a risk from the So
called dumping of American stocks on
this market. This dangers has doubt
less been largely exaggerated, but has
certainly been much diminished by re-
cent adjustments. The percentage OF
American stocks held abroad is very
much smaller than it has been for
many years. The Balkan war induced
a heavy return of our stocks, and this
movement has continued with more or
less freedom ever since. The larger
proportion Of what remains is doubt
less made up of high grade long term
bonds. such as are not likely to be sold
under any circumstances. Moreover,
the improved financial conditions in
London would tend to discourage forced
sales. especially as prices have already
declined considerably since the war be-
gan. Though not undertaking the risks
of reopening the exchange, 1t should be
candidly pointed out that these dangers
have greatly diminished, and those
which remain must be faced. Such
risks Could be still further overcome by
a gradual opening Of the market; az
for instance by initiating a call for cash
only on certain classes of domestic se-
Curities and gradually admitting inter-
national ones later on. A process Of
this kind would tend to establish a con-
sentative market and also give a val
liable indication Of the natural level Of
security values under the new condi-
tions.
THE opening of the Cotton ex-
change is also a matter of vital i'm
portance, and depends mainly on the
creation Of successful plan for
financing the present crop. which the
south seriously needs. Fortunately
all schemes for government assistance
have been voted down by congress.
Had the government set the precedent
of helping cotton growers it would
some day have been obliged to help
the producers of wheat, corn or cat
tie: and it could be just as logically
required to give financial aid to cot
ton manufacturers. steel manufacture
ers, bankers or others who happened
to be in financial need through cir
cumstances which they could not fore
dertaken to finance the cotton crop
would have been a most dangerous
and insidious precedent. In all prob
ability some satisfactory scheme will
be evolved as a result of the visit OF
Sir George Paish. Great Britain is
much the largest buyer Of cotton, and
must buy not much less than her Gus
tomary share to supply her enormous
export trade; not to speak of filling
Germany's lost trade. The present
depression in Lancashire cannot con-
tinue indefinitely. Whether the $780,
100000 so-called cotton pool will ma
terialize in its original form or not, is
uncertain. The movement, however
is in the right direction, and is con-
sistent with sound finance and il some
form of cooperation can be devised
that will assist both those who want
to buy cotton and those who want to
sell, whether at home or abroad, a so.
luton OF the present cotton emer.
gency will undoubtedly be forthcom.
ing. Possibly some aid can be OBJ.
tanned from the federal reserve banks
, Our exports of cotton have been seri
| ously retarded by the war, thus ma
| terially preventing a settlement of oul
foreign obligations. II we really ow,
Great Britain 100000 900 it is fal
better that we settle this debt as fal
as practicable by shipping merchan
disc than gold. and some adjustment
on these lines will prove to be tn,
! soundest method. either from al
! economic or a business standpoint.
There is no sense in our incessant
! ~ shipping gold to and fro across tn,
Atlantic. 1t is n costly and wastefu
operation when we consider the. los
OF interest. expense of transportation
insurance. commissions, etc. Our un
usual foreign trade situation leads m