Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-07-31
New York Becomes Dumping
Ground for Entire World
and Most Drastic Decline
Since 1907 Takes Place.
CLOSING OF EXCHANGE
SERIOUSLY CONSIDERED
International Bankers With
Fingers on Pulse Of Situa-
ton Express Pride That
Things Are No Worse,

lay MORNING JOURNAL SPECIAL LtAsro wlRsl
New York, July 30.-The New York
stock exchange bore the brunt today
of tremendous worldwide liquidation
oi securities This was solely in
rpired bv the clouds of war which To-
dav more ominous than ever. hung
over all Europe. II centered here be-
cause there is no other primary se-
curity market In the world which Is
not either closed or under restriction.
Prices broke from 6 TO I points
under an overturn OF 100000 shares
of stocks, a large part of which rep
resented the dumping Of foreign
holders of American securities or the
selling of foreign spectators. While
II was the most drastic decline that
has occurred since the domestic panic
Of 1907 and recalled the scenes OF
excitement that attended those days
international bankers who have their
fingers on the pulse of the situation
expressed pride in the fact that the
American market had so well with
stood the avalanche OF selling. This
now has been actively in progress for
nearly n week.
There was talk of foil. ~'1g the lead
Of foreign bourses and clos. < the ex
change, but the sentiment against this
appeared to be strong and no action
in that direction was taken today
Those who favored il argued that as
the sole primary market, the New
York stock exchange was acting in the
eahar.ty of. receptacle for selling
which as representing the intrinsic
values of American securities or indi-
eakng true financial conditions in this
cSuntry had no significance 1t was
further argued that closing the ex-
cnange would check the unprecedent
ed outflow Of gold, demanded by for
eigners in payment for the securities
they are selling.
Situation Is Sound.
Clearing house bankers declared to-
day that the financial situation here
was absolutely sound and this was re-
ilerated by financiers who called to
discuss the situation informally at the
office Of j. =. Morgan & Co. In TINS
connection the clearing house com
mittee decided to postpone for fear 1t
would be msconstrued, meeting
they were to have held for the an
nounced purpose of transacting rou-
tine business.
Though values tumbled precipitous-
today pointed to as significant to the
domestic situation was the large
amount of investment buying at the
record low prices to which many of
the standard securities dropped. II
was further pointed out that there al
ready had been long period of liqul-
dation in this country so that the on
slaught from abroad could not have
come at a more favorable time.
The local market was prepared in
measure before the opening for what
was to come. Early advices from
London and the continent pointed to
a crisis in all European centers.
The action of the banks of England
and France and the Netherlands, In
advancing their discounts, testified 10
the increasing severity of the financial
strain. This was augmented by the
suspension of business at all minor
European exchanges and commodity
markets and a number of failures in
London.
Intermittent Rallies.
Opening prices were down TO 3
per cent in semd instances even more.
From the outset the market manifest
ed its inability to stand up under the
enormous offerings. Selling for Lon
don alone was estimated at more than
$4,000 shares and a conservative esti-
mate placed the total foreign selling
at 100000.
There were intermittent rallies OF
two or three points, but these gains
wer lost in the final hour when the
cables told of Germanys representa-
tions to Russia. From that stage un-
til the close the selling gathered
greater impetus, though q few issues
made some slight recovery from the
lowest level. Notwithstanding that
the war risk of insurance on gold
shipments went to $4,000 per mil
lion today, $500, 900 more of the
metal was engaged for Europe.
The financial district continued It's
activity long after the close OF the