The sun., 1918-10-24
BANKERS MEETINGS
STIR WALL STREET
Money Committee Holds Sea.
sions, but Declines to Re.
veal Outcome.
MANY RUM0RS AFLOAT
Believed That Proposed Check
on Excessive Speculation
Was Discussed.
MANY RUMORS AFLOAT

eiN ~ tho CiOSe Oh tlB uaY thA
mystery regarding stocks, money and
the money committee was unsolved. 70,
more than five hours the so-called money
committee, OF which Benjamin Strong
Jr, Is chairman, wrestled with prob.
lens whose Importance is indicated BY
the value Of the time OF each member
% the committee. and so far as NE pub
lie Is concerned tho problems are no
nearer solution than they were prior to
yesterdays series Of discussions.
For two and half hours in IN.
forenoon and two and a half hours in
the late afternoon the members OF IN,
committee participated in an execu,,y,
session, the secrrts of which were no,
disclosed. Benjamin Strong, Jr., gov.
ernor of the New Fork Federal Reserve
Bank and chairman of the committee
presided. The other members present
were: Frank A. VANDERBILT president
National City Bank; James y. Wallace
president Central Union Trust Com.
pany; Walter z. Frew, president Corn
Exchange Bank; Jackson Fl. Reynolds,
vice-president First National Bank; E
d. Conway. vice-president Guaranty
Trust Company; A. H. Wiggn. chair.
man Chase National Bank, and Gates
w. McGarrah. president Mechanics and
Metals National Bank.
At tho conclusion OF the meeting
Chairman Strong sent out word tina,
there was no statement. A round robin
from the reporters brought about an
audience. but all Mr.. Strong would say
for publication was: The money com.
mlttee. with a full attendance, held two
sessions to-day. They authorized me to
make no statement"
Rumors on Their Way.
There was widespread knowledge
throughout the session yesterday In tn.
New York Stock Exchange OF the fact
that the money committee was holding
protracted conference. With this as q
basis rumors regarding money were
talked about on every hand OF these
reports there was no confirmation
One version had 1t that the money
committee was about to place further
restrictions on the supply Of money for
speculation. At the time this report
received credence there was a generally
bearish sentiment. with the market at
its weakest point for the day. II can
he stated that the rumor was believed In
the most authoritative financial circles 10
be unfounded.
Sentiment, on the other hand. bankers
said, was aided by the publication on
one Of the news tickers of the following
statement: 1T is understood that as
result OF the money committees con.
ference It has been decided to remova
the limits on money rates. Heretofore
call and other rates have been limited
to per cent. BY action OF the various
banks forming the money pool. II is be-
lieved that the most effective means ~
controlling any undue speculation in the
stock market will be furnished b. an
unrestricted money market. where the
high money rates will act as a balance
check. Brokers and others are there
fore looking for higher money rates
within the next two days"
That the money committee now has
under consideration the lifting Of the
lid" on money rates became known -
important banking circles yesterday,
but the consensus OF opinion was that
the money committee Ia holding oTer the
heads OF the governors OF the exchange
the warning that II is about ready -
permit money rates to seek their own
level that It will do so IL the trading
activity continues In what Is alleged 70
be undue speculation. and that the
banks in such an event will see to It
that the credit extended to the stock
market is held down to a point where Il
does not interfere with war operations
In support OF this opinion important
bankers referred TO a statement issued
toward the close OF last August by Gates
W. McGarrah. acting chairman 81 to
money committee, to the effect that in
the event there appeared to be dis
position to Increase the volume Of bIsi-
ness in the Stock Exchange whch
would call for the consumption OF ada
tional credit, the committee would check
the movement by advancing money rates
to the point where the Increase would
prove corrective" This was followed
about n week later by the Requirement:
that brokers furnish a daily statement
of the amount OF money borrowed OF
time and call.
Volume OF Trading Increases
Despite the warning OF the money
committee the volume OF trading In Tie
last week or no has gone far above 'ns
average at the close OF August and the
beginning OF September. The sales yes.
On Monday and Tuesday they were
equally large. while last Friday tho
trading amounted to more than 500
600 shares, with sales of nearly poe 900
shares In ter two hour session last SI:-
urday. There Is a wide difference ~
opinion as to whether this lncrea sod AZ.
tlVlty resulted from an Increase in spec
ulation on borrowed money. with Il cote
seQuent expansion In loans. or FROM as
!ncrea sing proportion of cash purchases
with funds obtained from the Interior
or from the credit balances IN New No'.
OF neutral and allied interests,
influential bankers said yesterday AZ
all three elements had contribut5 tr '.,
greater interest in Wall street ..-.v,
but at the same time they declared tat
the increase In spt Cu,atiou ou borrow .
money was suffic ent to give the money
committee great concern ani 10 ,Nn,-
them to try to find a way 10 chez. n 81.
Street expansion. The result ~ tie
failure OF the money committee g. u.,.a
a frank statement regarding H." o.',
culties with which they are CONt.a.'
has caused Il confusion % opinion. Hl..
delights the broker and enhances '"e
trading fever, which tho cymruttt.t pc
plrcntly wishes TO curb.
The warning OF Acting Cha!gUl: M'
Garrah last August and the rtQu-.' '.T
daily statements f ON brokers as 20 ger
borrowings were made II ia UNDER o'd,
az the instance OF the Treasury DEPART
ment. There were reports yes, rdaF mat
the money committee was elduNuI 'nS
n meet the wishes % the Washtn 20
officials and at the same time to pre-
serve "a fully az possible thr s:o,N 49,.
bond business in i;s present form ].
was said that tho situation Is full OF M.
solved problems The qIes tons vera
asked frequently: "Has the r. ~ got
beyond the power and jurisdiction ~ tht
money committee?" Is an uurrstriy.ri
money market the only sD,utiouH'