Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-08-01
FINANCIAL DISTRICT
MARKS TIME UNTIL
EXCHANGES REOPEN
Representatives of Big Institutions
Hold Secret Meeting in
Morgan Offices
~ discounted PrcSS

~ urea 4 ICNN
New York Aug. with the stock
markets still closed, the financial dis
trlct marked time to-day, while word
was awaited of the decision of the
european powers for peace or war.
wall street was almost as busily en-
gagged as under normal condiations
Inc street was crowded and every
where there was an air of excitement.
STOCK Exchange brokers and an army
ole mployeS came to their offices in
larger number than is usual on Sat
urday in midsummer, although they
knew that the Exchange would not he
opened to-day.
At the office of j. p. Morgan a. Co,
representatives of some OF the largest
lnanctal institutions in New York n
Philadelphia met to-day. The meet
ing was behind closed doors and no in
formation was o~btainable as to what
took place, beyond the fact that the
present troubled situation was dis
cussed with Il view to taking whatever
precautionary steps might suggest
themselves.
1t is understood that no definite time
Tor the reopening of the Exchange
was agreed upon, since little could he
done until receipt of definite Informal
ton from Europe.
No Trading Elsewhere
a meeting of newly formed associa-
ton of partners of Stock Exchange
~ ms was lltlu anu Il statement WiS
made urging all Exchange members
not to engage in outside dealings in
securities.
In closing the Exchange" it was
said, 1T was the intent hat trading
should not he transferred elsewhere,
and 1t is therefore incumbent upon
our firms, in loyalty to the welfare
OF III clients as we'll as the Exchange
to carry out this intention in good
faith, restricting transactions in both
listed and unlisted securities as much
as possible"
Although the time of the reopening
OF the Exchange rests entirely in the
hands of the board of governors, it
was everywhere assumed that trading
would not be reSumed for some time.
1t was felt that it Would be unwise
to reopen the market until the London
board, at least, should take up bust
ness again. Otherwise New York
would again be placed in the position
of bering the financial burdens OF
the world, perhaps to its OWL severe
cost.
When the Exchange was close yes
terday it was felt that the expectation
of gold might automatically be cur
tailed, since foreign holders of Ameri-
can securities could no longer sell
them here and draw gold in payment.
Nevertheless, further engagements of
gold were to-day. London
LOOK Nbuu ,uuU ana So,NDU, UUU. Large
amounts of coin were withdrawn from
the clearinghouse vaults by banks
which contemplate making shipments
next week. Another $40, 900, 900 of
gold was on the way from the Phila-
delphia mint to the subtreasury here.
Gold Export Taken Up
The extent to which the gold export
movement would continue was one of
the most important questions of tho
financial district at this juncture. Gold
shipments to Europe are now so eX-
pensiVe habZardous that it was
the general opinion that the movement
would be restricted he~nceforth. Not
only are the insurance rates so high as
to be prohibitiVe under any but the
present circumstances, but tehre are
few vessels in which the gold may be
shipped owing to the scarcity OF
American bottoms: In these vessels
alone it is regarded safe to export
gold, since ships of European ma
lions would be subject to capture in
the event of a general war. If the
demand for gold continues, despite
thees obstacles, 1t is possible that IL
moral barrier" may be raised, in the
form of an unwritten agreement
among banking houses not to make
further shipments. There was talk of
such action in Wall Street to-day, al
though it's likelihood was considered
remote.
The foreign exchange business was
again at a standstill at the close of the
week, such fantastic rates were quoted
at 700 for London cables and 500 for
demand.
There was a meeting of leading for
eign exchange interests to consider
methods of safeguarding the situation
and to reduce 1t to a sane basis. A
committee was appointed to outline a
plan and it will report on Monday.
One of the suggestions made at the
IN Getting was the shipment of $780,
900, 900 gold on London in the form of
a loan or in payment of purchases.
This transaction, it was said, would
he of great benefit to the London mar
ket and react to the advantage of our
own