New-York tribune., 1918-09-07


The work of the subcommittee has met
with the cordial cooperation of the impor-
tant interests connected with the New York
money market, and there has been main
tanned an orderly course Of affairs, in
which the supply of funds has been ample
for the essential needs We believe this
condition can be continued. 1t is obvious.
however. that for the present there should
be devoted to the security market no addi-
tional credit beyond the funds now so
used. Any tendency to expand the collat-
eral loan account should, for the general
good, under present conditions, be checked.
In order that this important situation
may be handled in a way that will result
IN the least possible inconvenience, it IS
desirable that we should have complete
daily view of Stock Exchange loans. We
recognize the dispoeition of the Stock E,-
change to cooperate in every way toward
contributing TO the orderly conduct of the
money market. and, depending upon that
patriotic disposition. we now ask the gov
ernors of the Stock Exchange to collect
Tor the confidential use of this COMMITTEES
daily statements from each member of the
exchange, showing in such detail as NAV he
agreed upon in conference the amount of
time and call loans of each Stock E,-
change house
This information will be for the CON-
Hoentlal use OF the committee in whose
nands has been placed the responsibility
tor maintaining an orderly money market.
The reports will be asked for DURING =,
temporary period. AT the present time II
Is impossible for us to say for Just how
long period they will be needed We
Will be obliged if you will ask the members
of the exchange to begin these reports at
the earliest date practicable
Lest any possible Observation-Disclosures o-1s.
as TO the object of this request. l am di-
recteo by the committee to explain that
TINS Is only one of number of measures
being undertaken by the committee with
the object of exercising, by mutual under.
standing among the institutions and firms
IN this city, such reasonable and necessary
control of the employment of credit as
will insure interference with the fnan-
cial operations of the government in con-
Quoting the war.
AceuiAIe Information as to the amount
Of bank credit being employed for Stock
Exchange purposes will be useful in at
tanning these objects
am also directed by the committee to
express its cordial appreciation of the
spirit of cooperation which has always
been shown By the officers and members
of the Stock Exchange in matters of this
-.
fcers of the Federal Reserve Bank.
Very truly yours,
(Signed) BENZ. STRONG,
Chairman OF the Liberty Loan Sub
Committee on Money
H. G. S. NOBLE, ESQ,
President, New York Stock Exchange.
New York, N. Y.
Announcement of the action Of tn,
Stock Exchange and the money com
mittee made shortly after mid d-day
caused a rush of selling in the stool
market, breaking the prices of leading
speculative and investment issues / tt
points. Dealings on the eXchang.
exceeded 100000 shares, making it the
largest days trading in weeks. Com
mon stock Of the United States Stee
Corporation was a special target, tn,
price of that issue falling from an early
high level of HAS to an extreme low
of HOS. 1t closed at 111A at ne
loss of 27s points. In the railroad de
partment Union Pacific common stocl
collapsed for a time, falling from 12-
to 12222. On single transaction tha
issue tumbled from 1854 to 1913.
few minutes later it touched 1921, ant
then quickly rebounded to 1852, wher.
it closed with net loss Of II:
points. Canadian Pacific dropped from
164&s to 1591s.
A member of the money committee il
discussing the latest step taken tt
curb speculation in securities as a wal
measure said that the information tha
will be obtained from the daily report.
about to be inaugurated is expected
to give the committee a most comrlet,
view Of the whole stock market loar
account.