The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-24
FINANCIAL NEWS
AND COMMENT
Prepare for Dealing I'm Bonds
on the Stock Exchange
Floor.
EASY MONEY POSITION
EASY

II expectations are realized the board
of governors of the New York Stock Ex-
change will to-day approve the plan for
resuming dealings in the bond depart
ment which has been prepared by the
committee In charge OF stock Exchange
affairs during the suspension. In that
event trading under the scheme may be-
gin at the end of this week or the be-
ginning of next.
As nearly as can be learned. resumption
will be surrounded with certain restrc-
tons, but 1t will he something more than
a mere transfer to the floor of the cx-
change of the business which has been
going through the Stock Exchange clear
ing house. If the departure is made 1t
will, among other things, be regarded as
the entering wedge of ultimate. complete
opening of the board to regular trans
actions in all departments.
Tho opening OF the Chicago Stock Ex-
change was interesting as an indication
OF the change for the better which has
been wrought In conditions, but of course
il lacked the Importance which must at
tach to the gradual restoration of the
country's primary securities market. Wall
Street gave far less attention TO II than
10 the action of bonds in the kind OF
trading which Is possible here without
Stock Exchange facilities.
There was no further display OF the
weakness which developed after the
middle of last week, when the prospect
for reopening the Stock Exchange bond
department was suddenly clouded. The
announcement made on Saturday as to
the intention to carry along the plan
for resumption checked the continuation
OF decline. and although prices we're not
distinctly frmer there was a marked de-
crease OF offerings.
Possibly this owed something to the
clearer understanding which obtained thai
no serious difficulty was responsible for
last weeks hitch in the programme The
explanation seems to have been simply
that some ofiicious person not long ago
took 1t on himself 10 misrepresent the at
titude OF the Stock Exchange toward the
financial authorities at Washing on, and
especially toward the Federal Reserve
Board, and misunderstanding resulted.
which was, however. quickly cleared M
The publicity apparatus Of the New York
Stock Exchange has also been working
badly again. but there is nothing to show
that banking sinterests have any reason
for being apprehensve OF the experiment
of Stock Exchange resumption.
On the contrary there are more obvious
reasons FOR courage. The establi shment
of the Federal reserve banks does no.
directly serve the securities market. but
indirectly IL accompllshes great deal
for their benefit. a token OF this is af-
forded by the mammoth bank SURPRISES
which are showing at this and other
clearing house centres as result OF the
reduction of reserve requirements.
To be sure bankers do not feel that
tha figures denote funds available for
hurling into the loan market recklessly.
but the excess Of reserves mus insure
satisfactory supply of accommodation
DOfElIWgTS ROllA al ~
Among other things IL offers a certainty
OF an adequate call money market.
Very likely banks and bankers will be
disposed to conserve their resources FOR
the eXieencies OF the securities market,
a policy which must have much to com
mend it in view OF the necessity of restor-
Ing the Stock Exchange machinery in or
der that the countrys business recovery
may not be severely hampered 1t is 10
be noted that the Response OF money rates
TO the bank showing Is ono OF inrrea sel
easiness IN tone without much change II,
quotations. The retirement of Clearing
House certificates and emergency currency
is assisted by a comfortable bank posi-
ton. but money lenders Will he disposed
to caution as long as these obliga lions
are outstanding.
German exchange sold AZ the lowest
point yet reached. both sight and cable
reichsmarks falling below Sc This may
nave opinion OF llt military STU
alton and was certainly in striking con-
trast with French and English remit
tance. Sterling exchange was distinctly
strong. rising more than a cent during
the day. with demand closing at 4soi.
and cables at 1901
In all probability month end require
ments had something to do with this
movement. but foreign exchange bankers
were inclined TO attribute the recovery
to a speculative accumulation Of exchange
In anticipation OF an inquiry to follow
freer trading In bonds, which might be
Charac terized by some European liqul-
dalton The preponderanco OF Judgment
is that while European investment llqui-
dation will be considerable in the ag-
glegate n will he gradual.
The fact that Sir George Paish and his
colleague Of the British ExchcQuer have
been recalled and that nothing seems 20
have come of their visit is most optimistl-
cally construed as an indication that the
international money market Is working
TO the satisfaction Of foreign finance
This OF itself suggests that European
selling Of American securities will not
be conducted In any excited fashion.
The latest cable advices report that money
Is practically drug In London, and SEN
timent over there may be gagged from
have to take very little Of the huge
British war loan.
Prices for agricultural commodities
were firm. Cotton has recovered practi-
cally all OF the decline which set IN
after the reopen!ng OF the cotton ex-
changes, and the cotton export movement
seems TO have been stimulated by he
restoration of the future market, lust ms
was expected. Last weeks shipments were