The Washington herald., 1914-09-20
MARKET TO open
ON CASH BASIS
Speculative Trading Will Be
Eliminated During First
Few Weeks. e..
RATE INCREASE. VALUE
Assistance to- Railroads Would Solve
Important Problem-Commercial
National Declares Dividend.

opening Ihelr STOCK eNCnanSe, dCCoIulh6
to kilograms to local brokerage establish
ments. The law against trading with
enemies is in force and will be used to
check Liquidation by German and Aus
trian bankers and investors. To render
this law effective in stock exchange
transactions it has been suggested that
no stock certificates can be delivered
unless registered in British names This
Proposal surprised some international
bankers and brokerage houses. They see
in il a plan to prevent New York from
hquidating in London. and some OF them
said that London was more afraid of
selling from New York than New York
need be about liquidation in this market
for London account. This puts an odd
twist in the situation. but it does suE-
gest a way to reopen the New York Stock
Exchange at an early date.
New York trade for cash on delivery
and shut out liquidation by cable through
putting an end to the borrowing of stocks
for delivery. Curbstone brokers operat-
ing in the gutter market" II is reported,
cannot get enough stock certificates to
NIL their orders at prices below the clos
ing quotations of July 30 last There are
few exceptions, but that is the gen.
Fral condition. II 1t is true that Lon
lon is quite as much afraid of New York
liquidation as New York is of pressure
s~om London it is about time that both
cash in conservative way to test the
real investment power of both countries
Gold bars representing S250OOO were
engaged for shipment to Ottawa making
the total gold shipments to that point
for the week in excess of 81, 10000. This
drain may cause a loss of cash to be
reported, which might as well include
the actual figures, since both national
and State banking Institutions are now
publishing their statements in fun in re-
sponse to the call from the Comptroller
Of the Currency and the New York
State Banking Department
The plan to raise 800 10000 among
bankers is expected TO materially aid
the situation. /
Cotton Syndicate working.
Since the reopening of the New York
Cotton Exchange depends very largely
upon the success of the efforts of the
committee which is endeavoring to form
a syndicate to take care of all distress
cotton, the daily meeting of that COM
mittee is watched with considerable in
terest by cotton interests. The commit |
tee, ii is stated, has a great deal of work |
to do before II can make any report !
and nothing definite regarding its actions
is likely to be known before the middle !
of next week.
According to one OF the leading mem /
bers newspaper reports of what it has /,
been doing have been very far from the !
truth. Nevertheless it is not questioned /
in local cotton circles that an attempt /
will be made to form a syndicate to
take care of all distres cotton that NIGH. J
be dumped on the market in case bust /
ness were resumed without such a pre-
cautionary measure having been taken.
The main question seems to be whether
banking support sufficient to put the plan
through will be obtained In some quar-
Tnp fe -F1 tod hae H. h-,,l H., al
have promised the necessary means of
carrying out the plan, but the statement
could be taken with some reservation.
In the meantime the general situation
continues to improve. In Liverpool Fri
day there were $500 bales of American
cotton called by spinners the largest
since July. The spot situation is grad
ually firming up, yesterdays report show
ing advances of one-fOurth cent. The
buy bale movement is gaining head
va. throughout the South and while no
estimates of the eyentfuI extent of thet
movement can be made it now would
appear that it will be sufficiently strong
TO affect the situation appreciably.
In addition. private transactions n fu- I
ture options continue TO be made at The
same level as was reached last Saturday, |
and the quotation of that day seeems 10 !
be hrmly established At a minimum. One |
large spot interest reported very excel |
lent in these private transactions.
Three representatives Of the exchange
were here yesterday afternoon to confer /
with Secretary of Agriculture regarding |
the meaning OF certain Cluses in the !
Lever bill. 1t is hoped that these doubt |
full points will 'e cleared up before the !
exchange reOpens and that when trading /,
is resumed il will Be in strict accord (
ance with the provisions of the bin.
VaIue of Rnte Jurr,a.e
The greatest problem before the
American people today is one which /
Curiously enough they are for the most !
part unaware is even a problem at all.
said A banker yesterday. Even those
who know of its existence fail to ap-
preciate its fundamental Importance. 1t |
was emphasized in some mea sure dur !
ing the delay in handing down the rate |
case decision. But the avalanche of war |
news has since buried IL and because for !
gotten, it may appear TO have been set I
tied. II is the position Of our railroads
The question as to whether the rail- |
roads of the United States are 10 re- |
ceiVe fair treatment at the hands OF /
governmental and State commissions; |
whether they are to be allowed to earn |
fair return on the capital invested is |
the corner stone on which the prosper !
ity OF this country for the next few Z
years will be erected or not erected
IT the Interstate Commerce Com
missions gives the railroads some relief
now. and the attitude of the public
changes to accept as inevitable higher
freight rates, then We may enjoy a very
sustained degree Of good times DESPITE
the war and possibly in a certain
measure because Of war.
'I believe that the railroads hence
forth will get fairer treatment than has
been possible at any time since 1907 The
people have only to realize the serious
ness Of the situation TO do the right !
thing When earnings on average rail-
road capital decline to ~ per cent and |
when S55OOOO,O 900 Of railroad securities ma
ture and demand refunding next year.
probably on a 5 per cent to an s per |
cent basis then conditions would seem
serious enough TO require immediate /
relief.
Had the nation adjusted its railroad /
problem the stock exchange could open |
in almost no time. for the foundations I
Of investment distrust have rested on I
the increasingly serious position Of our
railroads" . \
Since the beginning of the European /
Ann Cor M0NEV