New-York tribune., 1919-06-05
Bankers Money
Committee Has
Secret Session
Met Last Monday on Call by
Governor Strong for the
First Time Since January;
Purpose Not Divulged

The bankers money committee,
which relinquished control of the New
York money market last January, after
handling the local credit situation dur
ing the emergency Of the war period
when government borrowings were ex-
traordinarily large, held secret meet
ing Monday afternoon. The conference,
which lasted about half an hour, was
called by Benjamin Strong governor
of the Federal Reserve Bank of New
York
Members of the committee who at
tended the Monday afternoon session.
which is said to have been the first
since January and which preceded by
only twentyfour hours the squeeze in
Wall Street money rates that caused
severe break in stock market prices
on Tuesday, would not divulge the pur-
pose Of the meeting. They did say
that relatively unimportant matters
were discussed.
Gates W. McGarrah, onc-time chair
man of the committee when it was
actively engaged in keeping the lid on
the Wall Street money supply, re-
fused TO be seen by reporter. A mes
sage of inquiry sent in to Mr.. McGar-
ran about the meeting brought a reply
tnat there is no money committees; it
passed out Of existence several months
ago.
Governor Strong of the Federal Re-
serve Bank was interested to know
where the information came from re-
garding the meeting and said he had
nothing TO say" He was then asked
If the bankers present discussed the
wild speculation in stocks, and replied
that he knew nothing about that.
There have been rumors for several
days that concerted action might be
taken by the big Wall Street banks
to curb speculation in stocks by cur
'alllng the credit supply. Reports Of
TINS character have been denied by
the bankers, but a rise in call monev
rates to 10 per cent on Monday and to
J. per cent on Tuesday, causing a sharp
drop IN stock market prices, were ac
cepted IN many quarters as indicating
that the banks We're actually taking
the situation in hand. The meeting of
the money committee Monday, quies-
cent since January, together with the
relusal OF the members to give any
Information regarding what transpired.
mas strengthened the belief held in
many quarters that the banking au-
thorities are bent upon breaking OK
cesslve speculation in stocks.
When the bankers money committee
which during its two years Of active
operation was subdivision of the
local Liberty Loan organization. formed
to keep credit supplies ample at this
centre to meet the governments needs.
announced in January that it was about
to give up control of the money market.
the statement was officially made that
the committee would remain in exist
cnce, although it would not be active
lhls was interpreted at the time by
members of the committee to mean
that should the occasion arise the COM
mlttee would again take over the reins
OF the money market
The money committee, while still
exercising control over the Wall Street
credit supply, fixed limit last fall
OF S9oo,o0o,oo0 upon the total to which
stock market loans could be permitted
TO expand. Since the limitations were
all removed in January with the aban
comment of control, it is estimated that
Stock Exchange loans have risen to
approximately $1,000, 900.
Inc committee as constituted at the
tune 1T suspended it's control of the
money market consisted of BENJAMIN
Strong, chairman; Frank A. Vanderl;n
a: II. Wlggin, Charles II. Sabn, Gates
". McGarrah, Walter f. Frew. James
A. Alexander James N Wallace. WILL
IAN Conway and jackson f. REYNOLDS