The Washington times., 1914-10-23
OPENING: THE EX-
CHANGES

can treasures have been discussing
means to adjust the fiscal relations
between business, in the two CONN.,
tries with the least stress to both.
The United States owes somewhere
from $200,00o,00O to $500, ,001,-
mD0 to Great Britain on what might
be called open accounts. The British
need the money, need. it right away,
and are disposed to be insistent on
getting it.. In view of their situa-
tion at the moment. nobody is dis
POSED to fl;me them for pressing the
account.
: The American Government wants
to help American debtors to pay
their debts, and debtors generally
want to do it. But tse indisposition
to. ship a great quantity of gold
abroad is marked, and it reaches to
Government officers rs we'll as to
bankers. Every country is inclined
to look out for Number 1 at such a
time as this. No vast fund of al
tr,.isr is available for the occasion,
on the part of anybody.
Ordinarily, there would be no jam
in the money market because we
chance to owe England a balance on
account. Ordinarily, England would
be buying huge quantities of cotton
from US, and the cotton would offset
our debts, without tn. necessity of
sending gold. But cotton isn't NOV
ing. and there is some doubt wheth-
er it is going to move until after we
ray up our balances abroad. So it
is being urged that the Cotton En-
changes of New York and New Or
leans be reopened, in order to get a
plice basis established, on which
sa,es can be made. Nobody dares
buy cotton now in considerable guam
titles, lest it may later fall, and leave
the buyers losers 1t is hoped tha,
if tie exchanges be opened, it will be
possible fer the market elements to
shake down and establish something
like a safe basis for transactions.
After that, the British fiscal aus
thorilies think this country and Eng
land ought to open their Stock Ex-
chsrges, so that securities may oe
TUNED into cash by people who need
it There is general sentiment on
this side in favor Of reopening the
cotton exchanges, but not much in
favor Of resuming Stock Exchange
transactions; and the reasons are
very easily understood.
Our British friends ara promising
that if we will just pay up the $780,
10000 or more that we owe them on
current accounts, they will turn right
around and buy cotton with the
money, provided, Of course, that VIC
can get the cotton exchanges open
end the price reasonably settled.
That seems fair and reasonable;
American debts ought 10 be paid, and
if the payment of them will start
cotton moving, then manifestly we
will be the better off. IF we send
S:r'0,000,00C of gold abroad TO pay
debts, and get it back in d Little
while for cotton, nobody will be hurt.
But will it come back for the cot
ton? That's the rub. There is j
grave fear that it will not; that in
stead of sending the gold back, the
british business community will sell
our securities hack to us, pay for
the cotton with them, and keep The
gold. That would be perfectly easy
to 90, because they hold perhaps
three to foor billions Of dollars of
our securities, mostly our best ones,
too. They are willing 70 sell them
back to us at a sncrIficc. and they
naturally enough feel thai we ought
to be willing to open the exchange
and provide a market.
But on this side there is question
v'he :her we dare do it. II the market
be opened, 10 what extent will Brit
ish, German, and French securities
be dumped on Change The I'ritish
fiscal agents insist that there will
not be a ve~y heavy unloading; that
Britain doesn't want 20 dump on u.s.
but feels able and willing, for the
greater part, to sti:k to her good in
vestmeIts. That, however, is neces-
ssrily rrerty largely conjecture. No
tody knows how large volume OF
securities will be thrown on the
market once it is open. Il is very
certain that many millions from
Germany would be ordered sold, and
some of these would be securities
that the United States does not feel
quite under obligation to uphold; as
for instance Canadian Pacific. OF
which there is a huge quantity ir
Germany. The canny Bri:ishers, who
are not such suprer!e lnuocents in