The Birmingham age-herald., 1918-12-03
PHONE 49O0
STUDY FUTURE
 OF SECURITIES.
By HOLLAND

Fly HOLLAND A
 New York, December 2-(Specia1) )-For a week or more information has been re- ceived in New York which justifies the belief that in all parts of the country, at least in all the important financial and baHking centers, the action of the so-called~ bankers money committee of New York in restricting loans based upon the securities of the United States is shortsighted and, if continued, may be harmful Nevertheless it is the opinion of those who should know that this com mittee will not at present, at least, re- move these restrictions. It should also be reported that throughout the coun- try there is gentle criticism of the bank CTS money committee because the action suddenly taken by this committee makes 1t clear that there does center in New York as great money power as was all legged to be the case before the federal reserve banking system went into effect.
 We are to have speedily movement, greater probably than has ever been de- veloped in either London and Paris or Germany, which if fully met will entail rNNO personal market. The only organization which has these qualities for there is none in London or Paris is the New York stock exchange. In that exchange there can be provided an instant and fair mar ket for considerably more than $100,000,- o0c 900 worth of securities. Under the su- pervision of the governors of the stock exchange these securities can be listed and in that way anyone who wants to buy or to sell securities will be able to gratify his desire and to do it instantly. lie will be assured that the price which he pays when buying securities or re- ceives when selling them will be an ex- cellent test of the~value of the securities at the moment the order is executed. When the market is broad, then the price is fair, and in that way he who buys or he who sells will be satisefid.
 There is no doubt that with the con- clusion of peace negotiations and the ratification of treaties, securities in enormous amounts, both foreign and do- mestic, will be dealt in, if there be a fair, free and liquid market, in the New York exchange, and to some extent in other exchanges in the United States. MT. McAdoo knows as do our leading bankers, that securities in vast amounts government railroads and industries abroad will be offered in the American market, for there is no other which at this time can so easily and fairly deal with these securities. Furth- there will be very large amounts of foreign money deposited in American banks because merchants, manufactur- CTS and importers abroad will be anxious to establish large balances in the United States.
 :. HOW CAN IT BE DONE
 Many persons who are not well in- formed are of the opinion that the trans actions in the securities market are rep resented by actual cash. But if these transactions were limited to over-the- counter dealings, entailing the use of spot cash, a very limited market for the great body of securities would thereby be entailed Credit is essential Manu- featuring, mining, transportation, all de- pend upon the sale of securities for high development. In order to secure mar ket for them there must be broad and market. If there were not then corporation would have to pay d high price for it's financing.
 WHERE CREDIT COMES FROM
 The great majority of those who pur- pose dealing in securities turn to their brokers for credit. Now the bankers money committee of New York has placed upon that credit. This has been done for motives which are justifia ble. They are based upon the view taken at Washington that governmental claims and others are entitled to prior recogni- tion.
 It was said this morning by one who is familiar with these questions that loans made upon cotton aggregate about $500, 900, 900. The lint cotton which has been harvested this year is worth about bil- lion, five hundred million, and the by products perhaps a billion more The money which has been advanced to en- able the cotton planter to hold his crop at the highest level in 50 years is. reck- oned at about 20 per cent of the total value of the crop. It is also estimated ' that between five hundred 2millions and six hundred millions has been allotted to the securities market in order to furnish credit necessary for dealing in listed values in excess of $100, GOO, ,000, 900. There fore the allotment of six hundred millions
 UNDUE SPECULATION ~
 Many have assumed that ifsau srestric- ions were remoIed and if there were to be absolutely free. liquid and imper- sonal condition in the securities market, then there WOulQ lHSldItiy uC &CN cAoPSu speculation which might be carried to dangerous extent. In reply to this 1t IS said by competent authority, Business nen have been accustomed to take their ,ue from the course of the security mar zet It's barometric expression furnishes, guidance for the future It is therefore disconcerting at a time when he whole world is beginning to 1eei the irst invigorating pulses of rnew hle' Q witness the spectacle of waverinS Sc ,urity values"
 Incidentally, 1t Is also said that the of restrictive policy or tnis xrd does not promise well for the per- nhnent establishment of New York as he leading financial center of the world.
 Chose who are best informed believe hat we are soon to see release of nonev in large amounts. whien of course xill be utilized in investment. Business s likely to find itself upon peace foot ng many months before it was believed, ast summer peace would come. There ore it is the common opinion, an opin- on which will be welcomed throughout he country, that speedily supply of money will be so plentiful as to relieve Ill danger of stringency.
 
 Pumpkin Pie
 From the Peoples Home Journal.
 What would turkey dinner be with ut a. good old reliable pumpkin pie? line a deep greased pie plate with he following crust: Into bowl sift