The Birmingham age-herald., 1918-12-24

1 contemplate speedy return to earlier activities. One man who formerly car
 ried on very large transactions in the securities market, but who withdrew from
 active life there soon after the war be- gan, decided that an excellent opportunity for active business life in the securities
 market would begin as soon as peace came.
 He therefore went about among his
 friends in the financial district and made inquiries. He did this a day or two ago. When he received all the information he
 needed he determined that he would con-
 duct his operations through the London
 market rather than in New York. He
 iouho tnat many are persuaded that it
 IS rom many points of view advantage
 ous Tor an operator on a large scale at
 least to conduct his operations through
 London rather than through New York
 lie discovered that some impatience-or
 irritation is felt by operators because of
 some of the regulations and restrictions
 which have been adopted in the securi
 ties market and by the banks. None of these exist in London. He was also in
 formed that when peace is confirmed bv treaty normal conditions will prevail in London so that operations can be con- veniently carried on there. Information comes from London that presumab blv peace will be confirmed early in the spring. He has therefore decided that when renewing business life he will take advantage of the London methods and will turn his back on those in New York.
 RESTRICTING CREDIT
 Presumably when the bankers money committee adopted the restrictive meas ures which largely increase the amount Of margin necessary to secure a bank loan on collateral, the committee was of the opinion that the effect of this movement would be almost exclusively felt in New York city, If that, were the opinion of the members of the bankers money committee they appear to have been mistaken because from all parts of the country have come evidences that these restrictive measures have been felt and the complaints occasioned are there by relatively speaking, greater than is the case in New York city.
 No one questions the motives which led the bankers money committee to insist upon these restrictive measures. And yet many are of the opinion that in London nothing of the kind could have been adopted even though there was the sa me occasion to conserve credit to the benefit of the government as is claimed to be the case in the United States One of the effects of this restrictive policy is disclosed In the market quotation for Liberty Bonds. And it is the opinion of men whose financial judgment is worth needing that the prevailing low quota tions for Liberty Bonds reflect the emer- gencies to which many of those who have entered the security market and have placed orders to buy or to sell se- curities have been put. They have found it impossible to meet the demand of broker who tells them that the margin must be lacked up to 30 per cent from 10 per cent or 15 per cent to meet the restrictive order. Therefore they have turned to such securities as they possess for the purpose of selling them in order to be saved from loss. Many of these securities are Liberty Loan bonds and as the demand for them is at this time less than the supply these bonds com mand in the open market a price which, upon the surface will appear to have affected the credit of the government
 THE EFFECT UPON BUSINESS
 So also these restrictive measures ara producing an effect upon business, which Is now recognized It is serving con- to influence merchants to fix the limit of their purchases of commo- dities at the minimum. It was said this that it might be good thing for some American bankers to sojourn d IeW weeks III LOnQOn III Oruer that they might learn some of the methods highly successful, which characterize banking policies in that metropolis. If re- striction and very stringent rules con tinue the United States and it's great securities market, which is the New York stock exchange, are sure to lose busi ness, in the aggregate of large amount of which were there no oppressive or restrictive policies in operation, the United States would be assured