New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-14
COTTON CHANGE
OPENS MONDAY,
WALL ST. NEXT
Committee of Five Lifts
Ban on Trading in State
and City Bonds.
$4,000 PAID FOR
BIG BOARD SEAT
Embargo on Listed Indus
trial and Railroad Issues
Will Shortly Be Raised.


trial and Railroad Issues
Will Shortly Be Raised.
That Stock Exchange governors and
bankers have in mind definite plan
for reopening the exchange was dis
closed yesterday in a ruling of the
committee of FIVE that unrestricted trad
/ ing in municipal and state bonds may
be resumed for domestic account. The
precaution taken against renewal of
the foreign selling that caused havoc
in the financial centres of this country
as a result of the declarations Of war
by the belligerent European powers
was that all transactions for delayed
delivery, or "seller contracts" should
continue TO be under the supervision of
the subcommittee on bonds at the
Stock Exchange Clearing House.
This is the first definite step taken
toward a resumption of unrestricted
trading in listed securities since the
exchange closed July 81, and according
TO well substantiated reports will soon
be followed by removal of the en-
barge on listed railroad and industrial
bonds. Some of those who have been
urging the necessity of reopening the
exchange went so far as TO predict
yesterday that Monday the door of the
exchange would be thrown open for
trading in bonds, with further restric-
tions imposed upon possible liquida-
tion from abroad, should steps be taken
in the meanwhile to broaden the field.
Trade Balance for U. s.
The belief in financial circles is that
state and municipal bonds are not held
by Europe in large amounts, but it was
felt that the exchange authorities
acted wisely in safeguarding this
market from a resumption of selling
orders from that centre. Bonds owned
abroad, but held here, may be sold,
but the improvement Of financial con-
ditions in this country, as evidenced by
rapidly increasing trade balance
here and the ability of American bank
ers to meet their foreign obligations
in bills of exchange, II is confidently
believed, will take care of selling
orders from the other side.
The feeling of optimism aroused by
the committee Of fve's ruling was
further enhanced yesterday by other
DEVELOPMENTS of a decidedly encour-
aging nature. Among these were the
announcement that unrestricted trad
ing would be resumed on the New York
and New Orleans Cotton Exchanges on
Monday after fifteen weeks of idleness
and the sale of "A Stock Exchange mem
bership for S38 ,000 an advance of $4,000
Owe the price paid three weeks ago,
and that another purchase was under
negotiation at a price not ~ from
$4,000.
The decision Of the Cotton Exchange
authorities was recited with JOY among
the dealers in the staple, which was
evidenced by an immediate advance
of $4,000 in the quotation for mem-
berships. Yesterday seat was trans
ferred for $4,000, against $1,000 fort
night ago. Later $4,000 was bid for
seat. In banking circles IT was felt
that the reopening of the Cotton EX-
change would be big factor in re-
lieving foreign exchange complications
The real investment demand for
high grade bonds which has been ap-
narent during the last fortnight was
also determining factor IN the Com.
mittee of Five's decision. The head Of
one Of the most prominent OF Wsii
Streets investment houses stated yes
terday that high grade issues we're TO-
day from to points higher than the
low levels reached during the period
since the closing of the Stock Exchange.
This banker believed that the exchange
should be wide open so far as trading
in bonds was concerned. Norman trad-
ing, he thought, would not be fraught
with any setback to the general I'M
movement in the financial situation.
MAY Free Listed Stocks.
The success of the reopening of the
proad 81. curb market has also shown
,he financial administrators that the
time is almost ripe when the removal
! of restrictions on unlisted stocks may
include the lifting of the embargo on
iieted issues. Opinions vary widely as
.o tho extent of foreign selling that
,y;1I have TO be accommodated in this
,arLot some placing the amount as
bi@b as $1,000, 100000. Sir George
ps;sh takes the view that the figure
is not nearly so large.
The confidence of bankers that the
s,0o 900. 900 gold pool is no longer
raoded 20 solve the foreign exchange
mrobIem was expressed yesterday in
r. sta,ement of the managers that
~, aid not plan any additional call
on' the subscribers, chiefly because Of
tbe recent drop in exchange to rates
,,,oIl below the present gold export
no;nt That the Sl35,oOO,ooo cotton
ppool is no longer necessary TO stabil.
;ye the cotton market is the opinion OF
Wew York bankers. Under the ar
ranoement made for reopening the Cot
ton Exchange they say operations can
be resumed with every prospect OF
safety and stability. e
The local money market has def
ni,ely entered upon q stage OF all,
around relaxation, and ~ IS believed
~, This condition will be further re-
I3es PeseIve system on and after next Mon
Gs Gsy Cali money renewals have been
uay cd down from per cent TO 5l7
no NO cant Kuhn, Loeb & Co. announc-
PEI tbe lower rate yesterday for the
ne, time since July 81. Commercial
naner rates are also lower, the best
d"pes p"p now being obtsinsble at 5is TO
6ls per cent.
Now Orleans, Nov. l3.-Ihe New Or