Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-01
FINANCIAL ZONE
IS MARKING TIME
Wall Street Almost as Busily
Engaged as Under Nor
NAL Conditions.
FINANCIERs MEET TODAY
BEHIND CLOSED DOORS
Exchange Walks Are Crowded and
Everywhere There Is an Air
of Excitement.

| NEW YORK. August with the stock
and commodity markets still closed, the
financial. district marked time today,
while word was awaited of the decision
of the European powers for peace or
war. To all outward appearapces. Wall
street was almost as busily engaged as
| under normal conditions The street was
| crowded and everywhere there was an air
| Of excitement. Stock exchange brokers
and an army of employees came to their
| offices in larger numbers than is usual
for a Saturday in midsummer, although
they knew that the exchange would not
be opened today.
At the Office of ]. P. Morgan & Co.,
representatives of some of the largest
| financial institutions in New York and
| Philadelphia met today. The meeting
was behind closed doors, and no informa-
| tion was obtainable as to what took
place beyond the fact that the present
| troubled situation was discussed with a
view to taking whatver precautionary
steps might suggest themselves. 1t is
reopening of exchanges was agreed upon
since little could be done until receipt of
definite information from Europe.
Notice to Exchange Members.
A meeting of the newly formed Asso-
citation Of Partners of Stock Exchange
Firms was held. and statement was
made urging all exchange members not
| to engage in outside dealings in secur-
tiles
TN closing the exchange" it was said,
ut was the intent that trading should
not be transferred elsewhere, and 1t Is.
therefore. incumbent upon our firms, in
| loyalty to the welfare of our clients. as
well as the exchange, to carry out this
| intention in good faith. restricting trans
| actions in both listed and unlisted Sc
.urities as much as possible"
Although the time of the reopening
of the exchange rests entirely IN the
hands of the board Of governors. 1t was
everywhere assumed that trading would
not be resumed for some time.
1t was felt that it would be unwise
to reopen the market until the Lon
don board. at least, should take up
business again. Otherwise New York
of bearing the financial burdens of
/ the world, perhaps to its own severe
cost.
Further Gold Engagements.
When the exchange was closed yes
! terday 1t wac felt that the expectation
Of gold might automatically be cur
lean securities could no.Apnger sell
them here and draw gold1 payment.
Nevertheless further engagements of
gold were announced today. London
! took 100000 and Canada $3.50. 600.
Large amounts of coin were withdrawn
banks which contemplate making
shipments next week.. Another $780,
100000 of gold was on the way from
the Philadelphia mint to the sub
treasury here.
Canada's reauisition upon the gold
supply here during the present move
ment has been made only within the
last few DAYS. Large amounts of stock,
especially Canadian Pacific, were sold
here for Canadian account during the
recent wave Of liquidation, piling up
heavy credit for the Dominion. Bankers
said that Canada. in drawing down her
the same influences which prompted
London and Paris to make such heavy
calls.
Gold Shipments Of Vital Import.
The extent to which the gold export
movement would continue was one oil
the most important questions Of the
financial district at this juncture. Gold
| shipments to Europe are now SO OK
pensive and hazardous that it was the
general opinion that the movement
would be restricted henceforth.
Not only are insurance rates so high
as to be prohibitive under arg but the
| present circumstances, but there are
few vessels in which the gold may be
| American bottoms. In these vessels
alone 1t Is regarded safe to export gold,
since ships of European nations would
1 be subject to capture in the event Of a
! continues, despite these obstacles. It il
/ possible that a moral barrier" may be
| raised, tn the form of an unwritten
agreement among banking houses not
talk OF such action in Wall street to-
day. although Its likelihood was con-
| sidered remote.
The foreign exchange business was
| again at a standstill. At the close OF
| the week such fantastic rates were
! quoted as 100 for London cables and
500 for demand.
There was meeting Of the leading
foreign exchange interests to consider
methods safeguarding the situation
| committee was appointed to outline a
plan and 1t will report Monday.
One of the suggestions made at the
meeting was the shipment of 100000
900 gold to London in the form Of a
loan or in payment of bond purchases.
This transaction, 1t was said. would
be Of great benefit to the London mar
ket and react to the advantage Of our
own.
1t was also suggested that daily meet
| ings of q committee of exchange brokers
be held to fix reasonable range of
rates and supervise the exchange Of for
eign bills and transfers
Plans Submitted to COMMITTEES.
Another motion was for the appoint
| ment of agents at foreign centers to
attend to the collection Of bills in the
event Of a cessation Of specie payments
abroad.
A plan providing for tho appointment
| of trustees In New York. with whom
gold could be deposited in trust for the
| foreign central banks in case shipment
OF specie should become too periious and
expensive, was also submitted to the COM
| mittee.
| The cotton exchange appointed today
q committee to confer with assignees
was announced yesterday. to assist in
unrAveling the firms AFFAIRS.