The Birmingham age-herald., 1915-10-06
Banks and Trust Companies Become Uneasy at Run away Market and Heavy Speculation
BRAKES ARE PUT ON
 AND THE REQUIRED
 MARGIN DOUBLED
Speculative Fever in War Stocks Has Become Ma ton Wide and Fortunes Lost and Gained

New York. October 5.-Members of the New York stock exchange took ac- tion today to curb the nation wide spec ulation in so-called war stocks whose rapidly soaring values have led runa- way market.
 Banks, trust companies and financial den break have set the financial brakes and applied pressure on stock exchange
 houses to diminish, if not entirely end, the riot of speculation. Many exchange houses responded to that pressure to- day by notifying their clients that they would have to double the amount or margins in these specialties. Hereto
 fore the chief speculative stocks, with few notable exceptions have been carried on a 20-point margin.
 Many buyers today were unable to comply with the demand for more mar gin and a wave of selling orders carried stocks down from to 15 points. A re- covery came later but the close was off 3 to 10 points from the high level.
 The stock exchanges governing com mittee decided that something should be done to curb speculation and as the
 demand for more margin seemed to be sufficient for the first step It. con cluded simply to sound warning by calling the attention of all members to resolutions already in force. The Fof1 t1 holder of seat:
 Notice to Exchange Members
 'I am instructed to call the atten- tion of members of the exchange to the following resolution adopted by the
 governing committee with the request
 that they particularly admonish their
 branch office managers to be constant ly guided by said resolution in the performance of their duties:
 "'That the taking or carrying of a speculative account or the making of speculative transaction in which 8 clerk of the exchange or a member of the exchange, or of a bank, trust com pany, banker, or insurance company. is directly or indirectly interested. un- less the written consent of the employer has been first obtained, shall be deemed an act detrimental to the interest and welfare of the exchange.
 "'That every member of the ex-
 change be required to use due diligence to learn the essential facts relating to every account accepted by himself, or by his clerks or representatives, and also relating to the possible use of a name for the account other than that of the party interested
 "'That the acceptance and carrying of an account for customer, either a member or non-member, without proper and adequate margin, may con stitute an act detrimental to the in- terest and welfare of the exchange and the offending member may be proceeded of the constitution.
 Today's action neither was hasty or unconsidered. For more than week the banks have been somewhat un- easy over the market. For sometime past Wall street has appeared as the pot of gold at the end of the rainbow which stretched over the entire coun- try. Tales of fabulous riches to be 1 made in stock market gambling have
 made the financial section the mecca of a horde of speculators from coast to coast
 Typical of 100 others is the story of a man who came to Wall street four or five months ago with less than 5000 and today is worth more than $100,000, Of the man who lost there l Is no story told. yet the records of brokers offices show that he is in the great majority
 Speculation has been confined chief | ly to the stocks of certain compa nies
 reported to have received enormous war 1 orders. In most cases the amounts or war orders have been greatly exag-
 gerated. Notable instance is tho case of the American Car and Foundry com pany whose stock fell IA points over night on a statement issued by its
 president denying that it's war orders totaled between $50.000,000 and $75, = 100000. and setting forth the true amount, approximately e7.000,000. Bethlehem Steel stands at the top of the speculative list. Last year 1t sold as low as fraction above 26 To- day 1t touched 400. Crucible Steel,
 selling today at 103, was sold for about a third of this five months ago Westinghouse was up today to 137, a tremendous advance over it's selling price of few months ago. Incidental- l ly, dealings in Westinghouse. relative. ly inconsiderable six months ago, today l topped the amount of United States Steel sold, the shares of the former which changed hands today amounting
 to 11s.5O0.
 1 To discourage speculation many 1 financial houses within the past week have cut in half the sums they had advanced on certain war specialties ana thrown out others altogether.
 | For weeks past there have been ire auent editions to the string Of conser vative brokers who have refused to bu ! war stocks for their clients. In addition
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