The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-06
HARD KNOT IN LINERS
S2O,OOO,OOO STOCKS
Bankers and Brokers Haven't
Solved Problem Brought
by Olympic.
NO CAUSE FOR HURRY
Can't Send Money Over Ocean
to Foreign Sellers
Anyway.
NO CAUSE FOR HURRY

The steamship olympic. arriving IN New
York on Tuesday night. brought large
consignment Of American securities sold
here by foreign holders last week. The
total was estimated anywhere from si7.-
100000 to s20.00o.Ooo. These securities
were sold In this market previous to last
Thursday and in view OF the suspension OF
Stock Exchange machinery for transacting
business extraordinary arrangements have
had to be made to complete the transact
lions
The problem. which is an extremely
awkward one. Is engaging tho combined
attention OF the firms involved. the Stock
Exchange authorities and the banks. The
committee Of Ave appointed bv tho gov
errors Of the exchange took up the matter
with the Clearing House committee and
Representatives of the firms which sold the
stocks. II Is understood. however that
the day closed without definite settle
ment OF all phases Of the problem and
that further measures will have to be
taken before It Is finally settled.
According to custom these securities ar
rived with sight drafts attached. 1t was
the difficulty OF meeting these drafts IN
der tho present circumst3 noes which
proved the stumbling block. This has re-
suited in some cases In a temporary hold
ing up OF payment or technical default
1t is pointed out, however. that the mat
ter IN one entirely between the brokers
and tho banks, since II Is impossible now
to remit to the other side
Immediately upon receipt ~ notification
from abroad these securities were sold
in this market. the seller borrowing Ia
deliver pending the arrival of the original
stock. The unravellng Of the transact
ton. now that the okgiual stock has ar
rived. involves the return Of the borrowed
stock to the lender. who also returns
the cash put ~ to secure the loan. This,
however. can only be done by mutual
consent. Y,sterd ~ In many cases re-
turn of borrowed stock was impossible
and the brokers found themselves unable
to NEE: the drafts without help from the
banks
Leading bankers said yesterday that
while no agreement had been made anon
the banks TO carry these foreign sold Sc
curitics the banks would do ev rythinS
they could to clear up the situation.
The disposition of the matter was one OF
Individual negotiation between each broker
and his respective bank.
The banks treated the question or eN-
tending accommodation Just as they would
an application for an ordinary loan on
collateral In other words. where II WA
found that a firms business was I'm
satisfactory shape and had been con-
Quoted In a busnesslke way accommoda-
tion was granted
Various estimates have heen made Of
the total Of securities arriving on the
Olympic and a general rule tn" amour,
has been greatly exaggerated. The houses
directly concerned i'm the settlement ~
these transactions are comparatively few
The firms which handled the bulk Of this
foreign liquidation got together yestcr'
day and attempted TO arrive approx
matey al the total involved Their cal
culations put the figure AT betw en- VIZ
| 500 600 and $50. 600. non.