Las Vegas optic., 1914-12-08
Opening OF THE
EXCHANGE NOT
DAMAGING
.FINANclERs ARE ENCOURAGED
REGARDING THE coUNTRY's
CONDITION

I New YORK, Dec. S.--N0 untaV0raDle
developments followed the much
feared partial opening Of the stock ex
change. The bond market commenc
ed surprisingly steady and many quo.
tations showed considerable strength,
which happy result was foreshadow-
ed in my previous weekly letters.
Foreign liquidation was not an impOr-
tant factor, although some selling was
occasionally noted. In fact so posi-
lively encouraging was the experiment
OF partial opening that the exchange
for the first time since the war, issued
official quotations on stocks selling
at or above the minimum prices. This
very practical display Of confidence,
which should be encouraged, will
doubtless have a widely beneficial re-
suit It will tend to establish opinion
as to values. It has already demon
strated there is no such wholesale II
quidation in prospect as one time fear
ed; and it payes the way for an early
resumption Of trading in stocks on the
exchange The action Of the bond
market may be taken as a tair indica-
tion of how the stock market would
aet when reopened; and there is no
longer any serious occasion for delay
in gradually removing the present re-
strictions. There are intimations that
the London stock exchange may be
opened by the middle Of Tie month,
provided permission of the british gov
ernment can be obtained.
1t is now over four months since the
New York stock exchange closed, and
no business organization In the Uni
ted States has made greater sacrific-
es or greater efforts for The preser-
vation of our national finances than
the members of that body, either in
dividually or collectively. OF course,
they have been largely guided by in
telligent self interest as we'll as by an
appreciation of the consequences
which might have followed the debacle
arising from the war had it not clos
ed. Nevertheless, everyone In the fin
ancial district we'll knows that the
stock exchange was quite as much In
fluenced in its action by consideration
of national interest as by its own inn
mediate affairs. When the emergen-
Icy came, far-sightenedness, sound
Judgment and public spirit promptly
pushed selfinterest to the rear; and
the New York stock exchange through
prompt and unselfish action prevented
the gravest financial crisis this coun-
| try has ever seen from running into
incalculable disaster Now that this
danger has completely disappeared and
become only matter of history. this
fact is no secret; and is mentioned
not as a boast, but merely as mat
| ter of Justice to an institution that
has had to bear much more than its
share Of abuse, and whose short-com
ings and mistakes are infinitesimal
compared with the services which II
has rendered to the business comInun
! ity. Many of those who loudly rallied
against our various exchanges are
now only too glad to see them resHm
ing normal activities.
The local money situation shows fur
| ther improvement. Funds are aecum
| ulating and rates declining. Thes'
tendencies must be attributed first
to the beneficent operations of tn
new reserve banks, which have great
| " expanded credit facilities, and ser
ond to the dullness Of trade. whic
lessons the ordinary demands for az
commodation The lowering of X
serve requirements under the neV
Sy6ISu HSCGSSdIAly lHfOAVOu TIC AA9h
of too sudden ease and too much il
flation. in view Of the large amount
of emergency currency and clearin
house certificates still outstanding
Fortunately both of these forms {
currency are being retired as fast a
possible; and as the reserve bank
get into more perfect working orde
their control over the money situatio
will vanish. The inevitable increas
Of money and credit will howevt
prove powerful aid to business r
vival, and IL long continued cann'
but have great stimulus, not on
upon trade but also upon investmel
values. The tremendous extent
which credit facilities have been e
panded il not yet fully realized, al
until the money market has adius
ed itself to this heavy increase in bar
reserves our bank officials will ha1
TO exercise much discretion and 7
straint If they intend to prevent an n
desirable expansion of credit Ca