Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-29
BROKERS ARE GIVEN.
GREATER LEEWAY IN
MAKING BOND SALES
Permitted Now to Trade
Among Themselves-Ex7
change Reopening Plans
Depend on Reserve Bank
Operation.

roipnident with the lifting today Of
,.rtsin restrictions which have pre-
vsnted broader scale of trading in the
us,ed and unlisted securities. comes
word from bond statesmen on the street
tbat they are finding individual in
yestors in a very receptive mood and
Willing to listen to reason. There APP
,oors TO be a general feeling of con-
Adence in the ability of the financial
situation to readjust itself, and the re-
s,,t has been a brisk demand for
securities of the highest grade, partic-
ularly the utilities.
Success of the New York city note
,.,uo of s1Oo,oOO,OOO has inspired greater
nnnAdence and there is a brisk demand
,ocallv and in New York for the three
,nar notes, due in 1917 Prices today
were boosted to 1925, and even at this
so,,re which represents a 51s per cent.
hssis. the notes were hard to get
The investment bankers are reporting
business generally good-so much so, In
fact that there Is talk OF having me
STOCK exchange committee lift the ban to
the extent of permitting trades among
bro,ers I'm the listed securities the same
he ara being made in the unlisted stocks
and bonds The special committees are
not holding brokers to prices as OF thc
closing cate of the EXchanges-July 3o-
and sales are being made on basis OF
three to four points, in some instances
below those figures, with the inquiries
and actual sales exceptionally. large at
the low prices.
tire dealers in investment securities
which are not listed on the Stock EX-
changes may trade as between them
selves. They may issue circulars OF
list of their security offerings, out the
prices to be quoted, either in lndlVldual
sales among brokers or to investors, must
first be scrutinized and officially approved
by the special committee representing the
different bond houses, named some time
ago to sanction proposed stock and BOND
transfers.
This is the first time since the exchanges
closed that such privilege has been Of
hcally granted the investment brokers.
They have been permitted, for several
weeks to negotiate sales OF their own Sc
curitles 20 individual investors, subject
to the committees approval but they
have been restrained from transfers as
between tn 4mseNes. The idea OF the orig
inal plan was to prevent the letting down
Of bars that would permit unrestricted
transactions that might have tendency
to influence the very liquidation which
Investment houses everywhere and the
banking institutions that hold their Sc
curties as collateral have been trying TO
stave off. And 1t is for this same rea-
son that the officials of the various eS-
changes throughout the country are 60
Ing SLOW on the reopening proposition
TALK OF REOPENING.
The gradual wiping out of the restric-
tons that have surrounded trading since
the end OF July Is an indication of the
better feeling regarding the general finan-
cal outlook In New York today invest
ment bankers are talking of formal
of the Exchange about Decem-
ber l. The original date set by several
traders was November l,
but there was not taken into consideration
In this prophecy the fact that it is very
likely the Federal Reserve Board plan
would not be in operation by that time.
And there is every reason to believe that
there will be nothing done in the line of
a general official resumption until these
plans shall have been completed.
1nasmuch as there is coming due
October l large number of American
debts owed abroad there has been a |
general stiffening in the foreign exchange |
market Prices in the last few days have
taken a decided upward tendency, espe- |
2lally In the case of cable rates, which !
are so much in demand now in view of |
The impoSsbihty for the transfer of gold |
TO Europe by steamship in time TO reach |
foreign ports on the October due date. |
Extension of the British moratorium |
from October 4 to November does not |
apply to bills of exchange other than
checks or bills on demand. On account |
ot the fact that these obligations arc
excluded from the extension. persons on
this side who had been taking advan-
iage of the moratorium are obliged to
BUY exchange in order to cover their OBJ
lgations before October 4.
II is understood that a large volume
II finance bills had been put out during
he summer months, bankers expecting
10 cover these bills with grain and cot
ton exchange at low rates, but their
naturities have been extended from time
% time under the moratorium. Now that
settlements must be made by October 4
here was also a good inquiry for de-
nand bills on London for the Maure-
anla, which is the last boat to reach
London by October T. Some of these
inance bills have been renewed, but il
8 believed in some quarters that no
small part of them will be paid off