Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-08-01
WORLDS MARKETS
CLOSED FRIDAY
Cotton Decline Cause

With the exception of Flower g. Co.
the assignments are understood Il
have been caused by the recent ex
IRENE decline in cotton operations
Pell & Co. were reported to have beer
the leading firm on the long side o.
NE cotton market and to have beer
saught with enormous commitments or
heir hands when the break came
Flower & Co., who are not members
If the Cotton Exchange, are said to
ave been embarrassed by the break
IN stocks. No statement of assets and
liabilities was issued by any of the
firms involved
1t was the impression tonight that
the worst of the storm had passed.
Banks Sound
George W. Ely. secretary of the
Stock Exchange, said there was no
Indication of trouble from any other
quarter. New York's leading bankers
asserted unanimously that the posi-
don of the banks was sound.
How long the Stock Exchange will
be closed is a matter of conjecture,
the answer depending upon the course
of events abroad.
As late as $50 o'clock half an hour
before the time for the opening gong,
1t was generally believed that New
York would once more attempt to alb
sorb what the rest of the world chose
to thrust on it. The decision, however,
was not reached at a meeting Of the
governing board of the exchange, but
in a secluded room at the office Of j.
p. Morgan & Co. Mr.. Morgan, follow
ing the example set by his father when
he did so much to stay the panic of
1907, met there a group of the might
lest financiers in New York. There
was opposition to the suggestion that
the Exchange should be closed. Many
Of the Stock Exchange governors, who
were In constant communication with
the group of men in Mr.. Morgan's Of
fee secuted the idea.
The debate went on behind closed
doors. while all Wall Street through
which word Of the meeting had spread
like wildflre, waited with anxiety for
the decision. On the floor wildly excit-
ed brokers rushed back and forth,
shouting. In almost every brokerage
house in the street there 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 came the news that Germany
had declared a state of war in the
Empire. Even before this news the de-
cision had virtually been reached.
Word went forth that the board of
governors had decided to close the Ex-
change.
1t fell to Mr.. Ely to make the an
nouncement. A few minutes before 10
he mounted the rostrum in the board
room The clamor instantly died away
The. brokers massed in a silent crowd
facing Mr.. Thy. AS the gong changed
the signal for the opening. Mr.. Ely
made his brief announcement.
For an instant, while the signifi-
canoe OF his words was sinking in,
there was not sound. Then a shout
went up--a shout Of relief
A second conference of bankers was
held during the afternoon In Mr..
Margan's Office, but no further action
was decided on. II was said that the
present position of the banks was I'M
usually strong, that none of them was
in need OF assistance. and that Moth
ing OF an alarming character need be
apprehended, whatever the develop
ments in Europe.
The Cotton Exchange was open l
hour and 10 minutes, in which time the
three failures were announced In Its
brief session, the Cotton Exchange had
Its worst experience since the historic
day In 1904 when Daniel ]. Sully failed.