New-York tribune., 1918-01-18
Financiers, First Confused,
Finally Say, Back the
Government"
Only Severe Break
In Cotton Prices
Administration Knows the
Facts, Support 1t, Says
Morgan

Wall Street was thrown into 4 state
of great confusion yesterday by the
Garfield order. The financial district
was taken completely by surprise. but
apart from severe break in cotton
early in the day the markets gem
orally took the news calmly. On the
Stock Exchange. where arc listed hun
dreds Of millions Of dollars worth Of
securities of industrial corportions
which stand to be adversely affected
by the suspension order, prices dipped
at the opening, and then recovered,
ing gains.
Bankers and the leading officials and
directors of important industrial cor
porations which have their Offices in the
downtown district hurriedly called con-
ferences to consider the governments
action Many Of these conferences were
continued until late hour without
any decision being made because Of
the lack of understanding as to just
what the order covered.
Telephone wires between the eXccu-
tive offices and the industrial plants
at interior points were busy all day.
The long distance wires between Wall
Street and Washington were in use
from early in The morning until late
last night. A number of industrial
companies sent their officers post
haste to Washington to get an official
Interpretation of the Garfield order.
Financial Men Back Government
Although there was a general dispo-
sition among representatives, of tinan
cial and industrial interests to stand
back of the government in the crisis.
in many quarters strong disapproval
was expressed at the drastic character
Of the governments action. J. p, Nor
gan said:
"Thc Administration, with all the
facts before it, has decided this is
the best way of meeting situation
which was rapidly becoming a serious
menace to all the work Of the coun
try, and therefore to the successful
carrying on Of the war. The only right
course, therefore, is for all the people
to cooperate to the extent Of their
ability to make this measure effective"
One international banker said it was
as yet impossible to estimate the ef-
fects Of what was probably the most
drastic order ever promulgated in this
country.
The crisis which has developed" he
said, sis no more than was to be eX-
pected, in view of the fact that the
Administration blundered in appoint
ing college professors and others who
are long of theory and short of expert
ence to do the work which obviously
should have been placed in the hands
OF practical and experienced business
men.
England's Lesson
England long ago learned that only
by placing the war industrial and bust
ness activities of the government in
the hands of business men would the
desired results be obtained.
ut is to be hoped that the American
government now will realize the mis-
take it has made in putting theoris Is
III Sit0i &c VI Ou9lucSS anu lOllOW Eng
lands course
When the price of cotton tumbled
200 points, or the equivalent of two
cents pound, or $40 bale, on the
Cotton Exchange in the early trading
it was plainly reflection of the ap
prehension felt in the trade that the
closing down of the great New England
cotton spinning industries would bring
a large curtailment of that commod
lty: Afterward the cotton market
quleted down and prices recovered sub
stantially from the early low levels.
On the stock Exchange the stolidity
OF prices in the face Of the ASTOUNDING
news was considered remarkable. The
market opened quietly. without undue
excitement, prices tending to ease Off
put the decline was only momentarv
and was followed by substantial re-,
covery.
Some of the specialties showed great
er initial losses. but in the early after
noon the whole market was to 9
points no