The Birmingham age-herald., 1914-08-08
NEW YORK STOCK EXCHANGE WILL NOT
 BE REOPENED SOON
Special Committee Will Not Recommend Such Action Until Financial Situation
 Becomes More Normal

New York, August 7.-Reports from
 Wall street today that the New York stock exchange soon would be reopened
 brought prompt denial. The committee appointed to maintain active supervision
 over stock exchange affairs during the period of suspension made this state l ment:
 The special committee of five will not recommend to the governing committee the reopening of the exchange until in their judgment the financial situation warrants it and as before stated, ample notice will be given for the proposed re- opening'
 The statement was made primarily be- cause it was felt that reports or an eariy reopening if allowed to spread unchalleng- ed would give alarm throughout the coun- try. It was known that pressure was being brought to bear upon the governors, by some members, to consider an early reopening. The position of the brokers is rendered difficult by the heavy losses during the time of idleness and 1t was felt by some members that there would be small danger of heavy liquidation by European holders of American securi- | ties such upset the market last week.
 Want to Secure Gold | This selling, it was said. was for the purpose of securing gold and with a virtual embargo on additional gold ex- ports now In effect 1t was thought Europe
 would have no further reason for dump
 ing securities on this market.
 The committee of five, however felt it
 would be highly dangerous to reopen the
 stock market until financial skies had
 cleared definitely, particularly in regard
 to the credit situation and foreign ex- | change. It may be stated authoritatively that the government intends to be guided | by the judgment of the most prominent financial interests of the country and not by pressure from impatient exchange members.
 The general financial situation con
 tinued calm. More confident hopes were ! entertained of the gradual resumption | of activities in financial and commercial | lines, but it was felt there were no i'm 1 mediate prospects of normal conditions in | international credits and foreign trade
 Once decisive naval engagement is
 fought and control of the seas is estab-
 lished unquestionably, it is believed re- sumption of foreign trade on a consid- | erable scale will be possible. Foreign exchange bankers met today | in an effort to devise means for lifting | the embargo on exportation of merchan- disc and to provide payment for it. but they did not formulate a definite plan | of action.
 Outlook Improving 1 There were indications that the outlook
 was improving so far as the position of out of town banks was concerned. New York banks received assuring messages which showed that the tension was not
 so acute as a few days ago. An easier tone prevailed in the market 1 for the time money and it was expected
 banks would lend more freely next week. | Limitd amounts came into the open mar
 ket today, and were loaned at 6 per cent for six months. Nominal quotations for
 dates from 30 days to four months were
 made at from ' to 8 per cent Banks ad- | hered to their policy of loaning only to- day to borrowers Canadian banks con | tinued to deplete their balances here. No ! inconvenience to domestic borrowers ha S resulted from the gradual shifting of | loans from Canadian institutions to local | banks.
 There was a marked improvement in | the commercial paper situation and insti- | tutions were slowly resuming the pur- | chase of paper. The rate for the best
 names was per cent. There were indica- tions that interior institutions would be
 in the market next week for paper