South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-29
MILLION SHARES
SOLD DURING DAY
Wild Rush to Convert SeCuri-
ties Into Money Sends Prices
TumbIing-Canadian Pacific
Leads in Losses.
BY BROADAN WALL.

NEW LORK, July ga panic in
stocks occurred Tuesday on the New
York stock exchange as a result of
the declaration Of war by Austria
against Servia and the disorganiza-
ton Of credit between this country
and Europe
In the wild rush TO convert secur-
tiles into money. more than a mill
lion shares Of stocks. the largest vol
ume witnessed in about two years,
were thrown upon the market, fore
ing prices down from TO points in
the standard railroad and industrial
shares
Canadian\ Pacific had a frightful
decline. at one time showing a loss
of nearly twenty points for the season.
Nearly $4,000 shares of this stock
changed hands.
The smash was most pronounced
in the afternoon when shortly after
receipt Of the news that Austria had
declared war on Servia. it was
rumored about the financial district
that Russia also had declared war
against Austria II was then that the
flood OF selling orders caused prices
TO crumble TO new low records. Can
adam Pacific quotations virtually
melting away. So great was the ac-
tivity in this stock that the tickers
were nearly five minutes behind those
ruling on the floor of the exchange.
The break would have been much
more pronounced, according to bank
ers had il not been for the ire
mendous short interest that has been
accommodating for weeks The shorts
acted as safety cushions" taking
shares when others did not want
them.
Tt ward the middle Of the afternoon
there was substantial rally, but
just before the close the market had
another weak spell. The price OF
steel Union Pacific. Reading and
ANAL Copper dropping 10 within a
fraction of the lowest. Canadian Pa
cifc had a substantial recovery. its
closing price showing a loss of IA / A
points from Mondays close. but II
points above Tuesdays bottom figures
When prices were breaking the
worst a rumOr also was current that
there had been big Paris failure.
Simultaneous with this announcement
was made that the Montreal and
Toronto stock exchanges had been
closed because of panicky conditions
in those cities.
international bankers said the de-
moralizatiOn in London was worse
than at any time in their recollection.
Bankers and brokers in the British
capital were unable TO obtain accom-
mediation to pay for stocks and We're
cabling frantically To this side for
funds.
Credit facilities between this coun-
try and Europe were paralyZed again
and prices for exchange touched the
highest figures in generations. Paris
cables went 10 the new high figures
of five francs. while cable sterling
touched 495 and demand sterling
4911-2. Even at these prices bank
ers were unable to get exchange.
The margin between sterling cables
and demand sterling was eight times
the usual difference or the widest in
the memory Of international bankers.
Based upon this difference it was
calculated that the interest on funds
for nine days was at the rate of IS
per cent year.
Some small sized fortunes have
been lost according TO report within
the last two days by persons who
have run short of foreign exchange.
The steady flow Of gold grew into
Niagara Tuesday. S13,OOO,OO0 being
engaged for export Wednesday. The
supply of gold bars has been eX-
hausted here and the bankers are be-
ing forced to take gold coin which is
more expensive.
An international banker, nOJeu lot
his good judgment, said Tuesday that
general European war would cause
further liquidation of American secur-
tiles He said the foreigners have
sold virtually all of their stocks so
that the selling of American bonds
should increase. The foreigners have
been selling bonds for two days
Announcement Of favorable earn
ings by the United States Steel cor
IF
close Of the market was practically
unpo+fced