The Washington herald., 1914-07-30
WAR CAUSES Is
BANK FAILURES
London Stock Exchange Sus-
pends Session, Except In
Few Securities.
CROWDS ARE ANXIOUS
Gold Reserve Increased by Shipments
from United States-More
Failures Due.
CROWDS ARE ANXIOUS

London. July 2e-There is an unprece-
dented condition of affairs on the stock
exchange today. The ordinary session Of
business. except in a few special securi-
ties. was suspended. and seven firms
were officially announced defaulters, in
volving fifteen failures.
After the close of business anxious
crowds gathered around the principal
banks in an endeavor to ascertain
whether any checks had been returned
unpaid, and although officials were some
what reluctant to give out information,
1t became known that the checks Of sew
eral firms. including one important firm
of brokers. had been returned. thus an
nounclnE that several more stock ex-
change failures tomorrow are inevitable.
The stock exchange troubles so far
have been unaccompanied by any none
tary upheaval, and so far directors Of
the Bank of England have not regarded
the monetary situation as serious enough
to warrant special action, although no one
will be surprised to sc some advance
from the low rate Of 3 per cent.
Gold Reserve Higher.
At today's weekly meeting Of directors
1t was stated that the gold reserve in the
bank is considerably higher than at this
time last year, and exceptionally large
shipments were reported on the way here
from the United States Serious as the
financial position is abroad, trouble here
so far is a stock exchange crisis, not a
crisis.
New York, July 29-Not since the PAN
icky days of 1907 has the New York Stock
Exchange witnessed ouch excitement and
anxiety as prevailed today.
The fact that this was the only open
market in the world that was free and
"A a~nffAnanN
be intense. For the first time in his
tory London failed to send over prices
for Americans and this added to the
Members began crowding around
the posts at which the different stocks
are traded in earlier than usual, ana
the gallery was crowded with visitors
When the gong changed loudly for
the beginning Of trading the crowds
Of brokers suddenly turned as II by
magic from a quiet and orderly aggre-
cation to a seething mass OF humanity
which swayed back and forth, the
brokers franticaIly yelling their or
ders.
steeI,s Exciting Opening.
The din was greatest aroupd the posts
where Steel, Reading. and Union PACING
we're traded in. Reading opened at dit-
'erent quotations. ranging from l02 81 10
so IL 5000 shares changing hands in the
irst few minutes of trading. Steel also
had an exciting opening, 2,aO shares
yoing at 81 IA, and 5000 Immediately at
4.
Declines Of from to points in the
standard issues were recorded all over
he room, but brokers who stood on the
outside of the crowds at this point
Jumped into the struggling mass and be-
zan executing supporting orders.
So yfgourous and extensive were these
purchases that the market Immediately
rebounded to3 points to around Tues
laws closing prices. But the aggressive
ouytng continued, prices steadily moving
I'D to a level where they showed gains
II from to 5 points from the low lever
which showed bottom prices Tor the
year in twenty-six stocks. The support
continued until well into the afternoon
when there was a slight recession from
The best prices.
Lowest in Nine Years
In the morning smash three issues
Baltimore and Ohio preferred, Corn
Products. and New York Central-sold
n the lowest point in nine years, On
ario and Western the lowest in nfteen
years, Chicago and Northwestern the
bottom for more than fourteen years.
md Baltimore and Ohio common the
owest since 1903. Great Northern and
Metropolitan common soli
n the smallest quotations since the Isoi
,anic. while St Paul, Chesapeake ana
ohio, and Union Pacific went to the
owest prices since 1913.