Evening star., 1933-03-10
EXCHANGE OPENING
tSSEEN NEXT WEEK
Brokers Expect Restrictions
Will Be Put Upon Stock
Trading.
BY CHARLES F. SPEARE.

Special Dispatch to The Star.
NEW YORK, March 1o-Opinion
among members Of the Stock Exchange
is that the resumption of trading might
be deferred until the early part of next
week and that then it would be subject
to various restrictions.
The point is that until a test has
been made of the operations Of the banks
under the proposed new arrangements
1t would be inadvisable to subject the
stock exchanges to any strain. There Is
the further limiting factor OF the prob
able difficulty of borrowing from the
banks in the customary manner in
order to clear transactions.
It Is the determination of the COVER
nors Of the Stock Exchange to resume as
quickly as possible and as near to the
time when the banks reopen as is prac-
ticable. 1t was stated today that very
shortly the banks will require the as
SiStance of the exchanges in providing
market for securities, without which
progress in the general situation will be
interrupted.
American Stocks Gain.
The strength of stocks in London
to the Stock Exchange reopening. At
first it was thought that when trading
was resumed it might be necessary to
protect the market against liquidating
sales by establishing some form of
minimum prices. However, American
stocks in London have shown positive
evidence that they are more disposed to
go up than to go down. The popular
American shares have been remarkably
strong. In the case of American Tele-
phone & Telegraph the advance since
the closing on Friday amounts to nearly
z points. Stock Exchange houses have
been in receipt of buying orderes at
limited prices since the holiday began
In the aggregate these are believed to
represent a substantial amount of pur-
chasing power.
The outlook with respect to bonds Is
not so clear as with stocks The trend
OF the investment market last week
was definitely downward, while that Of
the speculative market was as positively
upward. The embargo on gold and the
prospect that this may be extended
has different reaction in the mind Of
the holder Of fixed interest bearing
securities than that taken toward
common stocks. The problem of the
market for Government bonds is one
OF the most delicate with which the
officials of the exchanges have to deal
1t goes deeply into the question of
maintaining the Governments credit.
The same general condition surrounds
those high grade corporation bonds
which latterly have been under much
pressure. Not only are they influenced
Of the gold situation, but they are one
of the most available mediums pos
SeSSed by banks for obtaining a large
amount of cash with which to meet
the demands of their depositors. 1t is
from this portion Of a banks port
folio that the collateral required to
obtain clearing house certificates or
other advances must be taken. Conse-
cuently, the governors of the Stock
the effect of a reopening on bonds as
with the former
general policy toward reopening is the
money market. On Friday the official
rate of call money was 3Ih per cent,
with outside loans quoted at per cent
Time money was 312 per cent, the
same as the Federal Reserve redis-
count rate Practically all of the op-
erations on the exchange have been
based for the last two years on call
money. Just how much freedom there
would be In providing day-to-day
loans, with a general banking system
that obviously must be operated for q
time on restricted scale, Is a consid-
ertion to which the exchange officials
have had to give attention in their
deliberations this week.
(Copyright, 1887