The Daily Missoulian., 1914-08-01
AMERICAN MARKETS
INDEFINITELY
CLOSED
PANIC STRICKEN EUROPE SEEK
ING TO UNLOAD ON NEW
YORK FORCES SHUT DOOR.

New York, July 31.-The complex
machinery of the securities markets
of the world came to a halt today for
an indefinite period an occurrence un-
precedented in history.
With all Europe seemingly on the
verge of war and the continental ex-
changes closed for several days, with
the London market following suit to-
day, the New York stock exchange
would have been called on to bear the
weight of the worlds financial bur-
dens. 1t had virtually done so all
week, for while the London market
was open transactions were only NOM
inal. The unloading of stocks here by
panic stricken Europe during the last
four days and the consequent col
lapse of prices made history in
Wall street, and after period of
hesitation and extreme nervous ten
sion it was decided ten minutes before
the hour set for the beginning of busi-
ness today that the exchange would
not be opened. That action closed the
last great market of the world. All
other American exchanges quickly fol-
lowed suit.
AS it was, there We're four assign
ments, three of them announced on
the cotton exchange. The firms are
Flower &, Co., bankers; S. H. Pell &
Co, stock, cotton and grain brokers'
Homer, Howe & Co, and f. j. Fried
eriksen & Co., both cotton brokers, but
it was the impression tonight that the
worst of the storm had passed.
The decision, however, was not
reached at a meeting of the governing
board of the exchange, but in a Sc
clIded room at the office of J. P. Nor
gan & Co. Mr.. Morgan, following the
example set by his father, when he did
SO much to stay the panic of 1907, met
there a group of the mightiest finan-
ciers in New York. There was oppo-
sition to the suggestion that the ex-
change should be closed. Many of the
stock exchange governors, who were
in constant communication with the
group of men, in Mr.. Morgan's office,
secuted the idea.
The debate went on behind closed
doors, while all Wall street, through
which word of the meeting had spread
like wildfire, waited with anxiety for
the decision, On the floor of the eX-
change wildly excited brokers rushed
back and forth, shouting. In almost
every brokerage house in the street
were crowds of men, some eager for
the chance to buy stocks at low prices,
others in dread of disaster should the
market be opened
Then there came the news that Ger
many had declared a state of war in
the empire, and even before this news
4hn icO had uirtI1llN hnan
reached Word then went forth that
the board of governors had decided to
close the exchange.
For an instant, while the signifl-
canoe of the news was sinking in,
there was not sound. Then shout
went up-a shout of relief.
second conference of bankers was
held during the afternoon in Morgan's
office, but no further action was de-
cided on.
The stock exchange took steps early
in the day to discourage every possible
way the formation of an outside mar
ket for its securities by venturesome or
irresponsible traders. 1t issued a no.
tice to members, pointing out that the
constitution prohibits dealing on any
other exchange in this city or pub
licly outside of the exchange, either
directly or indirectly, in securities
listed or quoted On the exchange. Pri-
vate transactions, it is believed, will
continue in moderate volume as long as
the exchange remains closed.
Foreign exchange was more demoral-
ized than before, but it did not prevent
the engagements of more gold to the
extent of about $3,650,0Oo, all for Lon
don. Bankers took up the matter OF
gold exports in the course of the sew
eral conferences today, and a meeting
of foreign exchange bankers will be
called shortly to consider the PROPOSE
ton of canceling, or at least postpon-
ing. the fulfillment of future contracts