Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-06
STEPS TAKEN TO CHECK
RIOT IN SPECULATION
New York Houses Apply Pressure to
Stop Nationwide Financial
Madness.
STOCK EXCHANGE A
Dealers in War Stocks Called Upon
by Brokers TO Double Their Mar
gins-Bankers and Wall Street
Leaders Fearful OF Crash.

NEW YORK, October 5.-Members of
the New York Stock Exchange took
action to-day to curb the nationwide e
| speculation in so-called war stocks''
a runaway market through million. and
| million and half share days
Banks, trust companies and financial
houses in New York, fearful of a sud
den break in values, have applied pres
! sure on Stock Exchange houses to di-
minish, IL not entirely end, the riot
of speculation. Many Stock Exchange
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
DEMAND FOR MARGINS
STARTS SELLING WAVE
When the demand for more margin
was made to-day many buyers were
unable to comply with 1t, and wave
OF selling orders swept over the ex-
change. carrying stocks down from
to Is points. y recovery was noted
later in the session, but the close was
of from 3 to 10 points from the high
level
Official cosnizance of the situation
was taken by the Stock Exchange at
a special meeting of the governing
committee. 1t was the unanimous be-
lief of the committee that something
should be done at once to curb specu-
lation. The demand for more margin
seemed to be sufficient for the first
step, so the committee decided simply
n nv
tention Of all Stock Exchange II embers
to certain resolutions already in force,
and which are aimed at undue specu-
iation. Notice to the members we're
sent by the secretary late to-day.
To-day's action was neither hasty nor
unconsidercd. For more than a week
the banks have been somewhat uneasy
over the condition OF the market. For
sometime past Wall Street has an
peared as the pot of gold at the end
OF the rainbow which stretched over the
entire country. Tales of fabulous riches 9
to he made in stock market gambling
have made the financial section the
Mecca OF "A horde of spectators from
coast TO coast
SPECULATION CONFINED
TO FAMOUS "wAR BRIDEs,
Speculation has been confined chiefly
TO the stocks OF certain companies
which are reported TO have received
enormous war orders. In the large ma
Jor1ty OF cases, the amount Of war
/ orders have been greatly exaggerated
notable INSTANCE is the case of the
American Car and Foundry Company,
whose stock fell IA points overnight
upon report issued by it's president de-
nytnS that its war orders totallcd be-
tween $4,000. 900 and s75.o0o.ooo, and
setting forth the true amount, approxi-
mately s7.ooo.oo0.
Bethlehem Steel stands at the top OF
the speculative list. Last year IL sold
as low as a fraction above o6 To-
day it touched 400. Cruciblc Steel sail :
ing o-day mt los. was sold for about a
third OF this five months ago. West
inEhouse was up to-day to l37, tre-
inendons advance over its selling price
OF few months ago. Incidentally.
dealings in Westinghouse, relatively
Increased six months ago. to -day topnea
the amount of United States Steel sold
the shares of which changed hands to-
day amounting to $4,000.
STOCK MARKET BECOMES
HOLLOW AND NERVOIS
So hollow and nervous has been tho
market during the past few million.
share days, due almost entirely 70
speculation in the war stocks. that II
has responded violently even to tho
rumors of bad news.