New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01
REVIEW OF The
STOCK MARKET
Nearly All Exchanges
Close After New York
and London.

inc its sessions until such time As con-
ditionS approXimaung normal return
or until Europe ceases 90 deplete Amer
ica's gold by making this market inc
S~nplps g.ocs fer her stocks. In ne
mn of tt,s big exchange followed q
score Of lesser oscs-all the stock eN-
changes of the East, as well as Ohl-
cago'S, the Coffee, Cotton and Metal eN-
changes and the New York curo mar
ket. The Consolidated stock Exchange
was for about half an hour IN t'e
morning the only free market toI
standard securities in the world. lnen
n followed the New York Stock tx
changes example and closed. The Cot
ton Exchange remained open for m
bour. in the course OF which prices
fuctuated wildly and the suspension o.
thrce firms was announced. The only
irportsnt markets iu the country, IN
tact. that remained open for ses-
sion OF ordinary duration were the
New York Produce Exchange and the
Chicago Board of Trade.
The closing of the New York eN-
change followed a conference Of bank
crs held Just before 10 o'clock. IL had
been practically determined upon ear
Tier In the morning, after announce
ment that the London Stock Exchange
had closed, but Germany's declaration
Of martial law throughout her empire
cXtinguishcd the last doubt
The wisdom Of the closing is not 20
bc questioned. The practical result OF
10 will be twofold: Gold exports will
bc checked. because Europe has now al
most no way of producing credits
against which they can be drawn; and
stock Exchange houses viii be given
,yeathinc time i'm which 70 recuperate
their customers margins and sohdlfy
their credit In the meantime sccur-
ity holders will have a chance 10 re-
gain tho confidence so rudely shaken
by the declines I'm prices eliminating
lu the "brcak' Of Thursday afternoon,
and they can profit by the advice con
tanned IN the statement issued by j. i.
Morgan yesterday morning.
ut is essentially a time said Mr..
Morgan. for the owners OF American
securities TO keep their heads. Bear
in mind that the actual properties rep.
resented by American securities viii
rot suffer greatly by European war.'
The Clearing House committee. made
up Of some Of the best known bankers
sn the United States. declared that THE
business and financial condition OF
Ncw York and of the entire country is
sound I'm this country their state
lnent continued, "there is no occasion
Tor any serious interruption Of the
regular course Of business. either hnan-
ciM or mercantile
10 would be wrong to say that no
strain had threatened credits. So long
as Europe could continue to sell stocks
here and get gold for them there was
tho menace From now on. however.
Turope can obtain but little gold. She
M
MARKET, and high insurance rates, the
cormandccring Of ships, etc. all op-
crate against physical transfers.
Though the Federal Reserve system
Is not vet operative, bankers are as
surcd Of an abundance Of money under
tho provisions Of the Aldrich-Nreeland
emergency currency act. The act,
amended when there seemed d hkeh-
hood Of delay i'm getting the Federal
Reserve system working, remains IN
force until June 80, 1910. The nece5-
sarv National Currency Association, to
s,4 az sponsor for banks desiring to
cake out emergency currency, was
formed several years ago, and repre-
u eentatives Of tho banks have gone 10
Washington to confer with the Secre-
cary Of the Treasury. lie sent as
.uranccs to this city yesterday that
cooperation.
Meanwhile brokers arc finding no
SiAicultv I'm delivering stocks TO other
brokers or paying for stocks delivered
10 them. Under the ruling of the
. Stock Exchange neither party to q
n transaction for clearance yesterday
Fl san compel the other 70 make good ms
AZ contract until the exchange Us again
in session. The right of refusal thus
given. however, has been awaited OF
lntle. If at all. II lis more than pos
fblc that the rcopening Of the eX-
shatge will see practically all trades
cleared.
only in one or two instances have
banks called loans; though Montreal
institutions yesterday withdrew some
al their secondary reserve from New
York None OF the Clearing House
members will call loans while the stock
... Exchange is closed. In many eases yes
terday they increased advances TO short
term borrowers. and at no higher ~ato
than the per cent at which loans ruled
en- Thursday.
Except in the foreign exchange mar
kct there has been at no time IN New
York such a disturbance as exists m
81 AL the great European money centres
Money has been freely obtainablc at
fair rates. In London, on the contrary,
the Bank of England's discount rate
was jumped yesterday from TO per
cent. the highest figure since the panic
OF 1866. there was a report that the
act which prohibit tho bank from issu-
ing notes except for gold would be sua-
pended. and some Of the joint stock
banks refused TO pay more than 10 per
cent Of the demands upon them m gold,
giving notes for the remainder. In
Paris gold went 20 premium.
The high prices that international eN-
change has attained here have no origin
In local difficulties, but were directly
caused bv the action Of foreign bank
crs i'm prccipitately recalling their
credits from every quarter Yesterday
,torling cables sold As high as So s2d
demand checks ~ s. -. Gold TO the
nmount Of S3.65O.O00 was engaged &C
tho Sub-Treaury for export TO Europe
aud 81 100000 for shipment to Canada.
Al The same time the Sub-Ireasury re-
reived an additional 100000 from
the Philadelphia mint and there rs -5a-
SON 10 believe that its supply VIII he
very greatly increased within few
days.
DIIDIIp UTlIITY MITES