New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-21

stated that Sir Georges first PROPOSE
ton to American bankers was that the
obligations of this country be met in
gold, it vas further asserted that u
was his purpose to establish reciprocal
friendly relations in the hope that the
investors of the United States would
later subscribe 10 the enormous amount
of financing that will have to be done
by Great Britain as a result of the
European war.
Definite information obtained con-
corning one talked OF plan for taking
care of expected heavy foreign selling
when the exchange reopens was that
the sellers be paid in s per cent notes,
to be guaranteed either by the Federal
Reserve Board or by the banks them
selves. II was argued that the Bank OF
England would accept these notes a.
collateral for loan. with such guar
antee behind them, and that the for
eign sellers Of American securities
could thus get their money imme-
diately. The plan as discussed by the
bankers and Stock Exchange authori-
ties proposes that the notes run seri-
ally. to mature in periods ranging from
one to five years.
Another plan for absorbing liquids-
ton from abroad. which has been pre-
viously mentioned in The Tribune, 10
the one suggesting the formation OF
pool. say. for 100000, 900. to which the
public would be asked to subscribe,
sucn a fund 10 be used TO buy the
stocks that Europe wanted TO sell.
Other proposals for reopening OF the
exchange include plans TO deal only in
those securities held in this country
and p reduction of per cent in the
minimum prices for listed stocks from
the level established on July 80. At all
events, it can be stated on high au-
thority that it isinot the desire OF the
banking community TO see the ex-
change opened again until a decision
has been rendered in the freight rate
advance case and until the Federal Re
serve system is in operation.
Perkins, Idea Denounced.
Stock Exchange officials did not CON
slider seriously yesterday the state
ment Of George W. Perkins that there
should be either state or national con
troll as a condition precedent to the
resumption Of business. They pointed
out that II was pretty late in the day
to bring up this subject, and referred
TO the verdict Of the Hughes commits
Of the Senate Committee on Judiciary
when the same question was brought
up under Governor SulLer in the win
ter of 1e12-'l3, and finally the hearings
last winter before the Senate Commit
tee on Banking and Currency. The
bill recommending the incorporation OF
stock exchanges introduced through the
influence OF Samuel Untermyer has not
vet been reported out Of committee.
"The Stock Exchange" said Mr..
Perkins, "has ceased to be a private or
even a national concern. IL Is inter
national. The attacks made upon 10 in
recent years have shaken public conf
dence and seriously injured business.
The only way TO restore that confidence
is to place the exchange under control.
Now is the time 70 do il, and steps 10
that end should be taken Immediately
Personally, should like 20 see II under
federal supervision. But If we are not
ready to 90 that far the state should
do IT,"
Mr.. Perkins suggested that one
method of federal supervision of Stock
Exchange affairs would be to adop. a
plan similar 10 that by which the
Treasury Department puts a wise on
the business OF the national banks.
When Mr.. Perkins's remarks wers
called TO the attention of governor o,
| the exchange he made this comment:
"There are only three people to-day,
so far as ! know. who advocate the in .
corporation Of the New York Stock
Exchange Sulser, Perkins and Inter
myer."