Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-29
BROKERS ARE GIVEN
GREATER LEEWAY IN
MAKING BOND SALES
Permitted Now to Trade
Among Themselves--Ex-
change Reopening Plans
Depend on Reserve Bank
Operation.

coinoident with the lifting today Of
,orta,n restrictions which have pre-
vented broader scale Of trading In the
usted and unlisted securities, comes
word from bond statesmen on the street
chat they are finding Individual in
vestors in a very receptive mood and
willing to listen to reason. There ap-
resrs to be a general feeling of con-
edonce in the ability Of the financial
situation to readjust itself, and the re-
sut has been brisk demand for
sscurities of the highest grade, partic-
ularly the utilities.
Success of the New York city note
,ssue of s1OO, ,OOo,o 900 has inspired greater
nonfdence and there is a brisk demand
iocailv and in New York for the three
EAR notes. due In 1917. Prices today
ware boosted to 1025s and even at this
azure. which represents a SIS per cent.
basis. the notes were hard to get.
THE Investment bankers are reporting
business generally good-so much SO, III
fsct that there is talk of having the
stock exchange committee lift the ban to
,be extent of permitting trades among
hrokers i'm the listed securities the same
nc are being made in the unlisted stocks
and bonds The special committees are
nnt holding brokers to prices as OF the
closing cate of the ExchanBes-July3 30
and sales are being made on basis OF
three to four points, in some instances,
below those figures. with the inquiries
and actual sales exceptionally large at
the low prices. .
Reginning to-day, and until further no.
tice dealers in investment securities
which are not listed on the Stock En-.
changes may trade as between tnein-
selves They may issue circulars or
list of their security offerings, put the
nrices to be quoted, either In Individual
sales among brokers or to investors, must
frst be scrutinized and officially approved.
nv the special committee representing the
different bond houses, named some time
ago TO sanction proposed stock and bond
transfers.
This Is the first time since the exchanges
closed that such privilege has been OF
tcially granted the investment brokers.
They have been permitted. for several
weeks, to negotiate sales OF their own Sc
curties 20 Individual investors, subject
to the committees approval, but they
have been restrained from transfers as
between til emselNes. The idea of the orig
inal plan was to prevent the letting down
Of bars that would permit unrestricted
transactions that might have a tendency
to influence the very liquidation which
Investment houses everywhere and the
banking institutions that hold their Sc.
curities as collateral have been trying to
stave Of And it Is for this same rea-
son that the officials of the various ex-
changes throughout the country are go
Ing slow on the reopening proposition.
TALK OF REoPENING.
The gradual wipinE out of the restric-
tlons that have surrounded trading since
the end of July Is an indication of the
better feeling regarding the general tinan-
cial outlook, In New York today invest
ment bankers are talking of a formal
reopenng of the Exchange about Decem-
ber !. The original date set by several
Vell-nformed traders was November l.
but there was not taken into consideration
In this prophecy the fact that it is very
likely the Federal Reserve Board plan
would not be in operation by that time.
And there Is every reason to believe that
there will be nothing done in the line of
a general official resumption until these
plans shall have been completed
Inasmuch as there Is coming due
October ! a large number of American
debts owed abroad, there has been a
general stffening in the foreign exchange
market. Prices in the last few days have
taken a decided upward tendency espe-
are so much in demand now In view of
the imposslbillty for the transfer of gold
to Europe by steamship In time TO reach
foreign ports on the October due date.
Extension of the British moratorium
from October to November does not |
apply to bills of exchange other than |
checks or bills on demand On account |
OF the fact that these obligations arc |
excluded from the extension, persons on |
this side who had been taking advan-
tage Of the moratorium are obliged TO |
buy exchange in order to cover their OBJ
legations before October 4.
1t is understood that a large volume |
OF finance bills had been put out during |
the summer months, bankers expecting |
10 cover these bills with grain and cot
ton exchange at low rates, but their
maturities have been extended from time
to time under the moratorium. Now that |
settlements must be made by October
there was also a good inquiry for de-
mand bills on London for the Maure-
tania, which is the last boat TO reach
London by October 4. Some of these
nnance bills have been renewed, but il
Is believed in some quarters that no
small part OF them will be paid off.