Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-07-31
EUROPEAN SITUATION
CLOSES EXCHANGES

CONTINUED From First Pagc1
York for the last few dsys had been
the only great market Of the world to
carry on business as usual. The de-
cision TO close came suddenly and un-
expectedly a short Til - before the
usual hour for opening. Up to that
time. although the street was in a
state OF great excitement, the general
impression was that the exchange
would open.
Meet in Morgan Offices
II was at "A meeting of bankers at
the offices OF J. p. Morgan & Co. that
the decision was reached. The meet
ing was attended by Mr.. Morgan and
II. Davidson, Frank b.Vanderlip. prcsi-
dent OF the National City Bank: A. Il.
Hepburn. chairman of the Chase Ma
tional Bank. and Francis l.. Hine. pres
ident OF the First National Bank.
These men were in close communica-
ton with the governors of the ex-
change and after ? long discussion 1t
was decided that the strain upon
credits might reach a dangerous degree
If the exchanges were open
While it is understood that there
was small opposition to the closing
of the exchange, 1t is learned hat a
majority of men whose advise was
sought decided thrt as n precautionary
measure the action should be taken.
No definite period for the closing Of
the exchange has been set. Stock EN-
change houses ave notified their Of
fees not to make deliveries for re-
ceived stock until further notice.
First Since 1877
William G. Van Antwerp. a over
nor of the Exchange, said tina IL was
the first time since 1873 that business
had been suspended for a full day. At
THAT time a large stock exchange house
| fuilpn and fhaTa =oCnra fhraafe of dan
gerous European complications.
The only other occasion in the his
tory of the Stock Exchange when sim
liar action had been taken was in 1869
on the famous BLACK Friday"
The movement of gold TO Europe,
which has reached unprecedented pro-
portions during the last few days. was
continued. The steamship st. Louis.
which sailed for Europe to-day, car
ried the largest amount of gold ever
taken from n port of the world on
a single vessel. The total valu of the
cargo was S11.025, 900. The total on
this movement of gold in four days
aggregates $145, 435, 900.
Others Follow Lead
The New York Coffee Exchange fol-
lowed the LEAD of the stock exchanges
and suspended business. The Cotton
were open, and at a special meeting
of the board of governors of the Stock
Exchange, President Noble was au-
thortzed to appoint a committee of
four governors to make rulings re-
garding deliveries on the curb.
Deliveries on the curt were suspend
ed by mutual consent between the con-
tracing parties.
Members of the board of governors
of the Stock Exchange said that board
probably would ask the banks not to
call any loans due to-day or at any
time while the Stock Exchange re-
manned closed. The banks, ii was
believed, would agree to such an ar
rangement.
The board of governors is in favor of
restricting all outside or private pur-
chases or sales of securities by any of
the members of the exchange on the
ground that such transactions would
be detrimental not only to the interests
of the exchange but to the financial
community as a whole.
Conference resumed.
The conference of bankers was re-
sumed at Morgan Company's office in
the early afternoon with some addi-
tional parties. including Paul NJ. War
burg, of Kuhn Loeb and Company.
The bankers exchanged notes con-
corning the European situation and
several of them expressed the belief
that the tension would show some re-
taxation over night. Another subject
Which, WIS given serious Consideration
was the matter of gold exports. 1t
was the opinion that the lack of
American vessels and the increasingly
prohibitive rates of insurance would
soon bring that outflow to an end.
The bankers, it was learned, were
also in communication with the
treasury department at Washington,
which gave assurance of support in
any emergency.
1t was learned that some of the Ca
madam banks were calling loans and
withdrawing some of their reserves
from banks in this city. The amounts
withdrawn by the Canadian banks
was said to be relatively small.
Trading in foreign exchanges was
suspended. Some houses quoted a rate
of $500 for demand sterling and 5000
for cable transfers, but after a nomi-
nal amount of business early in the
day trading ceased. 1t was a condi-
ton unparalleled and the rates quoted
had never been equaled. Brokers did
not attempt to quote rates for CONT
mental bills or for long date London
acceptance.