New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-01
STOCK EXCHANGE BARS PERIL OF
PANIC BY CLOSING ITS DOORS

rate of per cent. the maximum rate at
which the institution lends. 1t was
significant that the closing prices of
Thursday had been made the basis on
which these loans were placed. and the
customary margin of safety Of 20 70 20
per cent adhered TO. No demand was
made that the collateral should be
"sweeter"-that is, more desirable
than usual
Find Closing Wiser Course.
The report on the ticker that an
other Stock Exchange house had gone
was soon disproved, and then the men,
bers of the board who remained about
the exchange discussed the why's and
wherefores Of the closing.
At first there were some who were
inclined to think the exchange should
have remained open, cost what it
might. As the day wore on, however,
it became more and more apparent that
the wiser course mad been followed.
IL was worry easy, said members, to
attempt to emulate Ajax defying the
( lightning, but not exactly comfortable
or proof of more than aver &c discre-
ton. Comparison of notes showed that
the amount of buying orders that had
accumulated over night was infnitesi-
nal compared to the mass of selling
orders that had come in by mail, by
messenger and by wire.
The selling orders covered huge
blocks Of the choicest and highest
priced stocks on the exchange, stocks
for which ordinarily there is thin"
market. To offer these stocks Eat the
market"-that is to say, for the best
L 4 80, &c Inc
which Wall Street regarded as little
short Of criminal. If these had been
b auctioncd OFF under the circumstances
the standard rails and industrials
would nave broken badly certainly D
TO 10 points at a time, and hundreds
would have become bankrupt.
Governors Of the exchange said there
were few reports of clients taking adj
vantage of their brokers by Lying
down" The response to margin calls
had been good. they said, and the finan-
cial position Of the majority Of houses
improved.
The closing undoubtedly saved ex-
hausted bulls from being sold out.
There were many Of these who could
not hare hoped to meet the strain of
the day. AS things now stand .hey
sh .uld emerge with part of their capt.
tai at least saved TO them.
The bankers continued'to meet cur
ing the day. Late in the day it WAS
decided that Messrs. Hine and Wool
ward should go to Washington TO try
10 ease the situation and if possible to
obtain amendments TO the Aldrich-
Vreeland emergency currency act that
would enable city banks that have not
40 per cent of their capital represented
in bond secured circulation TO get the
use Of a part OF the $500, 100000 emet-
gency currency now in the Treasury
awaiting the call of business.
This morning the banks will be oOen
as usual. and so will the executive Of
fees of the exchanges. Committees of
the exchanges will adjust any disputes
or issues that may arise over tranJac-
tions in securities. More gold will be
taken for Europe, and the bank state
ment, according to present plans. Will
be issued as '.sual 1t will show the
wiping out Of surplus reserves-that
is. the banks will be shown to haze
less than the % per cent of deposits
REQUIRED by law in their vaults.
This is not unexpected, as the cry
has lost s45,000,000 in gold since the
last statement, but it does not mean
lack of safety, as, under the federal re-
serve law. the reserve required IS but
IS per cent.