The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-21
FINANCIAL REVIEW
OF THE PAST WEEK
Some Features Of the Problem
of Rcopening the stock
Exchange.
ELEMENTS OF A SOLUTION
Suspension OF the Securities
Market Must Limit Bust
ness Recovery.
ELEMENTS OF A SOLUTION

4 question which Ia being asked with |
increasing frequency over steadily widen |
euing financial area Is when tho Stock
Exchange will reopen. Tie question !
ing financial area is when the Stock
Exchange Itself II relates to the whole
market Tor securities. The emphasis with
which il Is reiterated IL a token OF the
growing Importance OF finding an answer.
As yet there is no evidence which war
rants forecasts OF Stock Exchange re-
opening. but in tho past week there have
been signs In banking circles that an APP
proach has been made 20 q consideration
Of tn, colossal problem which the .ecuri-
ties market represents to-day.
Speculative Impotence for a restora-
ton OF trading can he ignored in this
matter. Nor can impat.cncs OF any sort
b, very much regarded, for the situation
which the war has created IS ono which
can only be dealt with patiently aud
carefully At the Same time the fact that
a way must be contrived 90 resume rexi-
lar dealings In securities IS rather Inn
p-essively denoted by the formation Of
highly Irregular outside markets here
aud abroad.
10th speculation and Ia vestmcnt are 60
Ing on in them, oven though the levi OF
prices must be looked upon as fictitious,
and the trading which IS conducted has
| to be recognized a, proof OF necessities
which are finding expression despite the
| desires Of financial interests TO hold the
/ secur.t e. market In state OF suspense
/ until provision has been made for reopen
: lns To more or less regular dealings.
| There IS clearly need to lind ledEment for
! Investment funds or 70 convert into cash
! commitments already made and 10 relieve
| monetary positions FROM condition o.
| paralys,s More than that. 70 Is implicit
/ In the very nature and relation Of the Sc
curi,ies market to the corporate organi-
| cation of modern economic life that res-
| sons 81 a compelling character exist for
ending tae suspension ~ regular stock
ma'kst business as speedily as possible
While No ANSWER can "a Yet he returned
/ to the question a. to how soon tho stock
| l.>,hauec will opcu its door. indications
! 81 progress toward this result are tur-
Wished ov the Increasing amount or atien-
| ton r,niI 10 the problem of resumption.
/ Ii Is not now looked upon as II was up
! to a weel; or 80 ago, rs Sciuethlig WIN
/ HIGH the human mind - inadequate To
/ graphic There Is no longer REFUSAL
. on IN, part Of the banking community 10
regard the problem a. something which
/ should be taken M at once for " ~ seen
b that the total Of progress which is to ne
7 achieved in eiicc,ng rea1jusuncW OF
= business and finance to the circumstances
~ The var viii not lie satisfactory until
7 soricty can employ again tho securities
market facilities which have become IN
dispensahle 10 civilization.
" distinguished from the operations o.
: credit the securities market - tho mark"t
for ,ap'tal Il is there that funds for
iour Investment are provided and OBJ
tanned CapitL debts and assets are
thsvC kent IN lluuld state through sales
aud purchases Of titles to propcrt! ana
evidences Of debt and through loans
thereon. There corporate enterprise, Wll'h
is the prevailing form OF ecOn"nuc ell
t,rnrisc In tho modern world apart from
governmental undertakings Of q business
character. is financed or rCiinanccd.
Economic enterprise In tho largo de-
reuds upon the :, cIritles mdrket Only
In very tcmpurui and lame taSnl".,
can enterprise hc supported or extended
through tho facilities OF tho mouc'
. fr...E,t for credit The securities lndrhct
for capital Is not only great depart j.
lucnt ~ the general money lndtkt' pu'
= csscntlauy It's most important depart
' ,n,nt and even certain phases OF rrch''
activities are carried on NOWADAYS ia Inc
.e,urit,cs market throush the medium at
p short term note Issues. FuTthcrmo'" the
securities market rs q whole IA genera.
measure o. values and gauge oi hnan''s'
and commercial conditions. " rcl'''''
, with approximate accuracy both Inc gen
4 cral state Of credit ~ any given time ana
I '.to ratio az capital supply and dcmand
. /, sums vi ard Expresses the position "hu
trend 81 economic effort rs Hhpir' "hu
. lacking tn. securities market business ana
, banding can only be- done ia Hu aunon-
= rhcrc Of vast uncertainty which Is bouho
10 have most uutuvard "n~'ts.
The foregoing review 10 not exhaustive
but it L. Aullic.ent t. show that an en-
barge on dealings in securities should
, bo maintained only Just as Ions ~ II y
reuuited TO arrange for r"sumlng BUS
ness With safeguards against eA'esslN'
= disturbance of values and banking posi-
tons Tho foreign and domestic make
shifts which are being resOrtcd 10 are
e not and never can become substitute
l. for the regular transactions OF the organ
!. ted securities market Nor Is II possible
n 10 sustain for any great length ~ tlm'
- quoted level Of values by practically
= prohibiting operations which must anec
.. | quotations. Securities cannot he NaloriIrt
hv holding them IN a state OF suspense
and susIrense only cugeDdcrS forces WlhcI
tend 20 break down values as uncertainty
!, increases and tho necessity for convertinl
- rlcn into some form OF buying power &c
!, cumulatea.
Why the Market W~mains Closed.
" The American securities market was th'
. last OF all the world capital markets &
$ close That the suspension of dealing
. was imperative Is not disputed although
q IN the first fortnight Of suspension there
d were some academic protests based on a!
n inhumln curiosity rs TO what would have
happened II wall Street had continued I
br ,1f world
/, liquidatinG frenzy. All the conditions o
A panic were given and frantic rush ha'
= begun 10 convert securities into cash
which produced an impossible situation