The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-10-26
.CLEWS OPINIONS
ABOUT BUSINESS
Expectation That the Re-openins Of
the London Stock Exchange Will
Improve Conditions in
United states.
THE COTTON
Depends Mainly on the Creation Of q
Successful Plan to Finance the
Present crop-The
Rate Case.

Rate Case.
NEW YORK, Oct. 26.-Interest con-
tinues to center upon financial read
justment to the war and the early re-
opening Of the various stock and COM
modify exchanges. Events in this d.
rection continue to make satisfactory
progress. Cables advices indicate that
the reopening Of the London stock ex-
change is not far distant, and it is be-
lieved that the moratorium there.
which expires November 4. will no
be renewed. Prospects for opening
the New York exchange should be
CORRESPONDENCE improved.
The country is now learning the
usefulness of a much abused institu-
ton. So long as the New York ex-
change remains closed, no genuine
test Of security values is possible,
and buyers anad sellers alike are de-
prived Of the advantages Of a free
and open market. Owing to the
great progress made in meeting q
highly critical situation naturally
lessons the reason why the exchange
should not SO soon be opened. OF
course. there is q risk from the So
called dumping OF American stocks
on this market. This danger has
! doubtless been largely exaggerated,
but has certainly been much dimin-
ished by recent adjustments The
percentage Of American stocks held
abroad is very much smaller than it
has been for nan years. The Bal
kan wal 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 doubtless made up OF
high grade long term bonds. such az
are not likely to be sold under any
circumstances. Moreover. the Inn
proved financial conditions in London
would tend to discourage forced
sales. especially az prices have al
ready declined considerably since the
war began. Though not undertaking
the risks OF reopening the exchange, It
should be candidly pointed out that
these dangers have greatly diminish
ed, and those which remain must b
faced. Such risks could be still fur.
Their overcome by a gradual opening
of the market; as for instance by in
itiating a call for cash only on certain
domestic securities and gradually ad-
hitting International mes later on. A
process of this kind would tend to es-
xohrs1I - ~, xix.4 ~arHaf onA OIL
SO give a valuable indication Of the
natural level Of security values under
the new conditions.
The opening OF the cotton exchange
is also a matter Of vital Importance,
and depends mainly on the creation
of a successful plan for financing the
present crop, which the south serious
ily needs. Fortunately all schemes for
government assistance have been
| government set the precedent OF
helping cotton growers 1t would some
day have been obliged to help the pro-
ducers Of wheat, ri or cattle; and
1t could be just as logically required
to give financial aid to cotton manu-
facturers, bankers, or others who hap
| pened to be in financial need through
| circumstances which they could not
forsee. For the government to have
undertake 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 Paiss. Great Britain is
| much the larger 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
lGermany's lost trade. The present
depression in lancashire cannot con-
ltinue indefinitely. Whether the $780,
600 600 socalled cotton pool will ma
! terialize in its original form or not, Is
uncertain. The movement. however, is
in the right direction, and is consist
| ent with sound finance and II some
form OF cooperation al be devised
that will assist both those who want
TO buy cotton and those who want to
sell. whether at home or abroad, q 30
Luton OF the present cotton emergency
will undoubtedly be forthcoming.
possibly some aid can be obtained
from the federal reserve banks. Our
| exports OF cotton have been seriously
! retarded by the war, thus materially
preventing a settlement OF our foreign
obligation. If we really " Great
Britain 100000, 0eO 1t is far better
that we settle this debt as far as
practicable by shipping merchandise
| than gold. and some adjustment on
these lines will lprove to be the sound
est method. either from an economic
or . business standpoint.
There Is no sense in our i~ncessant-
lly shipping gold to and fro across the
Atlantic. 1t is a costly and wasteful
operation when we consider the loss