The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-12-12
Sl0,0OC,OO0 Is Average Sumi
Loaned for TranSactingl
Business in Wall Street, a
Witness States.
MORGAN NOT ALWAYS
ACTIVE IN MARKETl
But the Stock Gamblers AL
ways Go TO Him When in
Dire Need-High FinanceI
Is Unfolded Today.
National News Association


WASHINGTON. Dec. 12.-That ten
million dollars is the average loanedI
daily for the transaction OF businessI
on the New York stock exchange was
testified to before the Jujo commit
tee today. Some times the amount has
run as high as s35.OO0.000 The wit
ness who gave this testimony was J.
FL. Griesel. who has been a member
of the stock exchange for 90 years. In
his testimony Griesel spoke carelessly
of vast sums as though he was discuss
ing dollars and cents instead of mil
lions.
The biggest lenders, the witness
said. are the Chase National bank. the
( City Bank. the National Bank of Com
merce. the First National Bank. Spey-
er & Company. Kuhn, Loeb e. Com
pany, and ]. p Morgan & Company.
The witness described himself as a
member of the loan crowd" on the
New York stock exchange and said
that the lending usually began about
IL o'clock. an hour after the market
opened in the morning
When the witness began to use tech
nical terms, Attorney Untermeyer.
cousel for the committee, asked the
meaning of the phrase, renewal rate, %
Griesel had mentioned several times.
This. said the witness, known to be
available each morning for exchange
purposes. The witness qualified as an
authority on the subject when he said
he represented a number of big bank
ing houses on the exchange
Kuhn, Loeb e. Company and ]. p.
Morgan and company do a big busi-
ness but do not stay in the market all
the time" said the witness. Some
times they are out of the market a
month at time. Nobody goes to Nor
gan and company unless they need
help badly.
The City bank did not loan as
much money as Kuhn. Loeb & COM
pany. Sometimes Kuhn. Loeb and
company. when they get a lot of mon
ey from a bond issue lend out sI5.-
00o,0 day. This rs true of the other
big lenders also"
Just Leaned $4,000, 900.
Untermeyer asked the witness IL he
had a record of his business on Nov
ember 2s, when call money was at 20
per cent Griesel thought he loaned
s2o. .0o0. 900 that day. He said the rec
ord of the loans at the money stand on
the exchange did not cover any loansi
made after IL o'clock. On November,
90 more than s5,000,00O was loaned
before noon. On that day the witness
loaned $4,000. 900 between 2 and 2:3o.,
Because the delegation OF brokers
from the New York exchange protest.
ed TO outsiders against the manner
in which they have been detained i'm
this city to testify before the money
probers Chairman Jujo issued this
statement today.
There are FIVE gentlemen now pres
ent representing the governors of the
exchange. only two of whom have
been asked to attend. Two OF the 9th
ers were examined last June and their
presence is not needed by the COM
mittee.
'As soon as yesterdays disturbed
known the stock exchange governors
here We're offered the option OF return
ing home and coming back for Mon
days session. Every possible courtesy
consistent with the work OF the COM
mittee has been extended TO every
one"
Mr.. Untermeyer said he had person
al assurance from Mr.. MiIburn, coun-
sci for the exchange. that he and the
other witnesses who are here have not
been inconvenienced. Curiosity, hs
said, more than any thing else prompt
ed the brokers to come to Washington.
to attend the committee hearings. and
the very men from whom il is report
ed the objections to the committees
methods issue are not here under sum-
mons and are prompted to remain in
this city only through their personal
interest in the inquiry.