The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-08-01
MACHINERY OF WORLDS
MARKETS STANDS STILL
New York Declines Longer to Bear
Burden Thrust Upon It by
Other Nations.
STOCK EXCHANGE IS CLOSET
Financial Conditions Declared Sound,
but TO Continue Trying 10 Absorb
Europc's Panic-Stricllen Unloading
Would Have Invited Danger.

New York. July 3l.-Thc vast and
complex machinery OF the securities
markets of the world came 10 a com
plote halt to-day for an indefinite
period. 1t was an occurrence unprccc-
dentcd in history.
With ail Europe seemingly on the
verge of war, the Continental eX-
changes closed several days ago. With
the London market following suit to-
day. the New York Stock Exchange
would have heen called upon to bear
the weight OF tho worlds financial
burdens IT virtually had done SO all
week: for While. the, Lordon market
was open, transactions were nominal
The unloading OF stocks here by panic
stricken Europe during the last four
days. and the consequent collapse of
prices made history in WALL street.
TO CONTINUE LONGER
WOULD BE HAZARDOUS
To continue longer to bear the bur
den. in the opinion of the bankers.
whose influence determines the course
of events in the Street, would have
been hazardous in the extreme. After
Il period OF hesitation and some ncr-
Nous tension, II was decided ten min
utes before the hour set for the be-
ginning OF business to-day that the
exchange would not be opened. That
action closed the last great market OF
the world. All the other American cX-
changes closed.
AS 1t WAS, there were four assign
mcnts. three of them announced on the
Cotton Exchange. The firms are
Flower & Co, bankers; ). II. +. Pcll
K Co. stock. cotton and grain brok-
ers; Homer, Howe n Co. and +. j.
Frederickson * Co, both cotton broll-
crs. Witlr the exception of Flower 4
Co. the assignments are understood TO
have been caused by the recent eN-
n fnn , ;n,,
Pcli & Go. were reported to have been
the leading firm the long side of
the cotton market and to have been
caught with enormous commitments
on their hands when the break camo.
Flower &: Co. who are not members of
the Cotton Exchange. arc said to have
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 George W. Ely. secretary
OF the Stock Exchange. said there was
no indication of trouble from any other
quarter. New Yorli's leading bankers
asserted unanimously that the position
Of the banks was sound. How long
the stock Exchange will be closed Is
a matter Of conjecture. the answer de-
pending upon the course OF events
abroad.
CLOSING - INDEFINITE
IL GENERAL WAR COMES
IF general European war should
come" said one member of the gov
crning board, the exchange may be
closed all summer
Banking business was not greatly
dcranged. and there WAS no loss OF con
fidcnce as to the outlook In that di-
rection. but dealings in foreign cX-
change were virtually abandoned
The events Of the morning gave pro
sale Wall Street ono OF it's rare Tours
of pure drama. Last night it was as
sumcd everywhere that the stock i!X-
change would bc open to-day. When
word came that the London market
had been closed uneaslncss grew un-
til it. WAS realized that Wall Street
was face to face with re;A crisis.
1t was obvious that should the cN-
change open an avalanche OF selling
orders would be thrown in from Flu
rope. Brokers mad on hand buying
orders for a large amount from in
vestors desirous OF taking advantage
of the unusually low prices.
thought, might hold up the market for
n time. After that. IL was any ones
guess what would happen.
At $3.50 o'clock, half an hour before
orally believed New York would once
more attempt to absorb what the rest
OF tie world chose to thrust on il.
Tho 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. L Morgan Il 60.
Mr.. Morgan, following the example
set BY his, father. when he did SO much
a group OF the mightiest tinanciers in
New York. There was opposition to
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