By reason of this emphasis, the proposal for "clearing facilities" has had quite unpleasant reactions. As intimated on April 26, it brought a temporary atmosphere of fraction between the London Stock Exchange firms who specialize in arbitrage busi-hess with the U. S. and the London offices of Wall Street firms. It had been freely stated by London Stock Exchange firms that the emphasis placed upon a matter of purely domestic convenience strongly suggested that American houses were endeavouring to secure publicity for London houses felt compelled to Wall Street dealings at a time when adopt a cautious attitude towards operations of this character.
American offices in London, however, had no desire to create the friction which this comment aroused. Tt is recognized that the London Stock Exchange forms an essential link in the chain of U. S. security dealings, and that the good will of London offices is a matter of vital importance. One American broker to whom I spoke yesterday stated definitely that the committee of the London Stock Exchange could take action which would involve severe reaction on American branch offices, and could, moreover, do so "without official notice being given."
Text read from the printed page and cleaned; old type leaves the occasional error.