The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-08-04
WORLDS HUGE MA3TS
STILLED FOR SEASON
In Face OF War, Financial Centres
Shut Down Pending Better Con-
ditiOnS-NeW York Sticks

pielS lAdtI lOudS lOI d44 I1UV1l4IAIC p1
riod 1t was an occurrence unprece-
dented in history.
With all Europe seemingly on the
Verge of war, the continental ex-
changes closed several days ago, and,
with the London market following suit
today, the New York stock exchange
wculd have been called upon to bear
the weight o; the worlds financial
burdens 1t virtually had done so all
week, for while the London market
was open transactions were nominal.
The unloading of stocks mere by panic
stricken Europe during the last four
days and the consequent collapse of
prices made history in Wall street. To
continue longer to bear the burden,
in the opinion o.: the bankers whose
influence determines the course Of
events in the street, would have been
hazardous in the extreme. After pc
riod of hesitation and extreme ner-
yous tension, it was decided, 10 min
utes before the hour set for the be-
ginning of business today, that the
exchange would not be opened. This
action closed the last great market of
the world. All Of the other American
exchanges quickly followed suit
Four to the Wall.
AS it was, there were four assign
ments taree Of them announced .on
the cotton exchange. The firms are:
Flower & Co., bankers; S. H. Pell &
Co., stock, cotton and grain brokers,
and Homer, Howe & Co., and F. j.
Frederickscn & Co., both cotton
brokers. With the exception of Flower
& Co., assignments are understood
to have been caused by the recent ex-
treme decline in cotton operations
Pell & Co., was reported to have been
the leading firm on the long side of
the cctton market and to have been |
caught with enormous commitments |
on their hands when tae break came.
Flower & Co., which is not member |
Of the cotton exchange, are said to
nave 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 tat
the wcrst Of the storm had passed.
George W. Ely, secretary of the stock
exchange, said there was no indica-
tion Of trouble from any otter quar-
ter. New York's leading bankers as
serted unanimously that the position
Of the banks was sound. How long
the stcck exchange will be closed de-
,pends upod the course of events
abroad.
May Close All Summer.
eff a general European war should
come" said one member of the gov
erning board, "the exchange may be
closed all summer"
Banking business vas net greatly I
deranged but dealing in foreign ex-
Changes were very nearly abandoned
There was no less of confidence as to
the banking outlook.
The events Of the morning gave
prosaic Wall street one OF it's rare
hours of pure drama. Last night it
was assumed everywhere that the
stcch exchange would be open today. !
When WORD came that the London
exchange had been closed uneasiness
grew until it was realized that Wall
street was face to face with a real
crisis. 1t was obvious that: should
the exchange open, an avalanche OF !
selling orders would be thrown in +
from Europe. Brokers had on hand !
buying orders for large amount from
investors desirous Of taking advantage
Of the unusually low prices.
Execution of these orders, it was ,
thought, might hold up the market
for time. After that, it was any
ones guess what would happen.
Haf an hour before tie time sor
the openiag, it was generally thought
New York would once more attempt
to absorb the worlds offerings. The
decision to Olose however, was lot :
reached at a meeting of the govern
ing board Of the exchange, out in
secluded room at the Office OF J. P.
Morgan & Co.
Where History is Made.
Mr.. Morgan following the example
set by mis- father, when he did so much
to stay the panic of 1907, met there