Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-10-07
STOCK EXCHANGE
To CHECK RIOT
Of SPECULATION
Dealings in War Shares Exceed
Boom Trading of 'O7-Spec-
ulators Lured by Hopes
of Vast Wealth.

New York, Oct. 5.-Members OF the Now
York Stock Exchange took action to-day
to curb the nationwide Speculation in
so-called war stocks whose rapidly soar
ing values have led a runaway market
through million and million and half
share days, comparable only with the
boom days of speculation in 1891
Banks. trust companies and financial
houses of New York, alarmed at the
swiftly ascending tendency OF the mar
ket and fearful of II sudden break IN
values have set the financial brakes and
applied pressure on stock exchange
houses to diminish II not entirely end.
the riot Of speculation. Many stock OK
change houses responded to that pressure
to-day by notifying their clients that
they would have to double the amount Of
their margins in these specialties Hero
tofore the chief speculative stocks. with
few notable exceptions, have been car
ried on a twenty-point margin. Hereaft
the margin will he 40 points, at least
until such time as the market becomes
normal again.
When the demand for more margin
was made to-day many buyers We're I'm
able to comply with 1t and a wave nf
selling orders swept over the exchange.
carrying stocks down from four to fifteen
points. A recovery was noted later IN
the session, but the close was off from
three to 10 points from the high level.
Official cogniZance Of the situation was
taken by the stock exchange at a special
meeting of the governing committee. II
was the unanimous belief of the com.
mittee that something should be done
at once to curb speculation. The demand
for more margin seemed to be sufficient
for the first step so the committee de-
cided simply to sound warning by call
ing the attention OF all stock exchange
members to certain resolutions already
in force The following notice was there
fore sent by George w. Ely. the secre-
tary, to every holder Of seat on tho
exchange:
II am instructed to call the attention
of members of the exchange TO the fol-
lowing resolutions adopted by the govern
Ing committee. with the request that they
particularly admonish their branch office
managers to be constantly guided by
said resolutions in the performance of
their duties:
That the taking or carrying OF n
speculative account or the making of n
speculative transaction, in which clerk
of the exchange or of a member of the
exhange, or Of a bank. trust company,
banker, or insurance company, is direct
" or Indirectly interested. unless the
written consent of the employer has been
first obtained, shall be deemed an act
tint
of the exchange.
""rhat every member OF the eXchange
be required to use due diligence to learn
the essential facts relating to every ac-
count accepted by himself or by his clerks
or representatives and also relating to the
posshlc use Of n name for the account
other than that Of the party Interested.
That the acceptance and carrying Of
an account for a customer. either MEM
Der or a non-member, without proper and
adequate margins may constitute an act
detrimental to the interests and welfare
of the exchange. and the offending mem-
Der may be proceeded against under Sec
ton / of article XVII OF the constitu-
ton
To-days action WIS neither hasty nor
unconsidered. For more than a week the
banks have been somewhat uneasy over
the condition of the market. For some
time past Wall street has appeared as the
pot of gold at the end OF the rainbow
which stretched over the entire country.
Tales OF fabulous riches to be made in
stock market gambling have made the
financial section the Mecca Of a horde
Of spectators from coast to coast. Typi-
| cal of a hundred others is the story OF n
man who came to Wall street Gpur or fiva
! months ago with less than slno and to-
day is worth more than 100000. OF the
, man who lost there is no story told. yet
the records of brokers' Offices show that
he is in the great majority.
Speculation has been confined chiefly
to the stocks OF certain companies which
| are reported to have received enormous
war orders. In the large majority of
cases. the amount Of war orders has
been greatly exaggerated. Notable in this
/ connection is the case of American Car
| and Foundry company whose stock fell
| II points overnight upon n statement ia-
| sued by its president denying that its
| WAR orders totalled between s5O,OOnG
and $4,000 900 and setting forth the true
amount. approximately s. 10000.
Bethlehem steel stands at the ton az
! the speculative list. Last year II sold as
| low as n fraction above &c To-day II
touched 400 Crucible steel selling to-day
| at 1903 was sold for about third of this
| five months ago. WESTINGHOUSE was uD
| to-day to 1877, n tremendous advance over
| its selling prices of n few months MO.
Incidentally. dealings In Westinghouse.
relatively inconsderablc six months ago.
| 90