Evening star., 1915-01-10
MONEY SITUATION
FURTHER CLARIFIED
Reopening of London Stock
Exchange Another Step
in Process.
WALL STREET TRADING
is DULL AND LIFELESS
General Trade and Industrial Situa-
ton Adjusts Itself on More
Solid Basis.
BY w. S. COUSINS.

BY w. S. COUSINS.
NEW YORK. January 9.-The reopen
ing of the London stock Exchange
Monday of this week may be consId-
cred as another step in the process OF
clarifying the financial position. though
not as important as if there were not
so many burdensome restrictions
thrown around the trading list. In
like the New York market, the London
Stock Exchange is under the direct
control of the government. and is
therefore not in a position to prescribe
its own rules of conduct.
The British treasury department has
ri-idIy ruled that all trading must be
on Il strictly cash -ondelivery basis,
and that no orders may be executed in
behalf of the kings enemies There has
also been an attempt to establish a
minimum price list. though this is not
50 clearly defined as in the case of the
New York Exchange.
ON the whole, therefore, the showing
made by the London market has been
greatly disappointing, and the prices
that have been cabled over to this side
have been depressing influence upon
our security sales. London has been
able to demonstrate one fact, however,
which is that it is possible to conduct
security market on strictly cash
inclined TO doubt the feasibility of such
an operation. but are now ready to ad-
init that it is infinitely better than a
closed shop.
Trading Proves Dull.
Trading on Wall street during the
first full week of the new year has
been dull and lifeless. with apparently
no demand from outside sources, and
ber hot hoc E.,, II,
this week has been almost entirely of
a professional nature. The minimum
price regulation has prevented short
selling, while on the other hand there
has been no impeliing motive that
would command a further rise in the
price list The result is that there is
the very smallest possible margin
within which stocks can move, and this
condition is the one great handicap to
a buoyant and resilient market.
Most OF the larger brokerage houses
have resumed their market letters"
which contain lots of good advice for
prospective customers As rule the
information contained in these letters
is to be taken with grain of salt,
since their object is to invite consid-
Grafton of the ''specialties' that a par
ticular house may be desirous of SELL
ing or having sold They also contain a
more or less accurate general survey
of the investment situation, and those
which have recently appeared have
sounded fairly optimistic note. OF
course, just at present 1t is the duty of
the stock broker to steer prices as far
above the official minimum as possi-
BILE, for the double purpose of placing
them upon a more firm position with
respect to intrinsic values, as well as
to make more possible important eX-
tensions of short commitments. Brok-
ers must do business or receive no
remuneration, and hence their only
hope at present lies in rising market.
this is the nOOreSt DOSSiDle
ment for such rise.
Domestic Situation Clears.
1t is very gratifying, however, to
note that our own domestic situation
has been cleared of most of it's de-
pressing influences, and if given a
square chance should brighten up con-
siderably within a limited time. The
European war. with all it's horrible
concomitants, must ever act as
damper upon our spirits, but we are
rapidly reaching that stage where we
must refuse to allow even this world
catastrophe adversely to affect our
home Industries, more especially the
soundneSs of our financial position.
1t is now conceded that the influence
of the decision by the interstate COM
nerce commission granting the east
ern railroads authority to raise their
rates to a living basis is a feature
increase as time progresses'and the
oby iouS benefits of the new railroad
policy spread from the roads already
favored TO those in the other important
sections of the country. The decision
that has recently been rendered was
merely on a test case. 1t may be re-
garded as furnishing the necessary
precedent for similar applications for
more remunerative rates that Will un-
doubtedly be filed by alert railroad
managers in other sections
Higher railroad revenues, especially
when business improves, mean addi-
tious to net profits. In turn they mean
security of dividends and the removal
of doubt from the ability of the trans
portation lines to pay not alone inter-
est on bonds already outstanding. but
on new bonds that it will be necessary
to isue at the earliest possible mo-
mcnt if the lines are to be placed
upon q proper basis for the develop
ment of the country.
Seek American Products.
Perhaps the greatest feature in the
adjustment of the foreign exchange
situation has been that the European
belligerents now desire large quantities
Of American commodities, and are 60
ing about the matter of purchasing
them in a very scientific manner. 1t
Is believed that If the European war
Is to continue throughout most of 1915
the European nations will take large
amounts of American foodstuffs and
other commodities This would insure
continued large exports and hand
some further balance of trade in our
favor. As against this, however, there
is some apprehension that Europe may
not renew its holdings of maturing
American security obligations in the
coming six months. This will be very
heavy in the line of short-term obliga-
tions. This, of course, would operate
somewhat against our expected credi,
balance.
The great European couI tries have sc
many war obligations to take care OF
that il would not be surprising il
holders abroad of American maturing
obligations might prefer their funds il
home national banks. So far as the
merchandise import movement is con.
cerned il is likely that our home con.
sumption of foreign goods will continue
TO show Il decrease What will help tC
bring about this result is the active
movement now in progress in favor Of
made in the United States"
This promises to assume large pro-
portions and the country may rely upoT
Its own resources to n greater extent
than in many years. With the current
low rates for sterling there is logical,
continued discussion to return flow
Of GOLD from Ottawa, The preyailine