Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-27

more accurately spectators, were nee
essarily sold out without notification.
The slide came so quickly that there
was no opportunity to inform them.
When the bankers began wheeling in
reserves Thursday afternoon, the bench
cent effect was perhaps as much
psychological as anything else, although
the millions which they poured in I'M
doubtedly had a profound Stabilizing
effect regardless of the psychological
factor.
Around noon on Thursday it appeared
that Sherman WIS 20 miles away and
that war was all he said 1t was. Then
| there was rift of sunlight in the
clouds.
WORD ran through the exchange that
| Albert H. Wiggin had just entered the
office of j. p. Morgan & Co. While
| this did not Immediately affect trading,
| it spread the word that the bankers
were coming to the rescue OF the be-
sieged brokers and there was observable
in the pit an almost instantaneous
change of demeanor. A short time later
a representative of Morgan 81 Co. ap-
peared on the floor and began to bid
| boldly on United States Steel. This
was the turn of the balance. 1t was
then revealed that meeting of bankers
had been held, attended by Charles E.
Mitchell. chairman of the National
City Bank; Albert H. Wiggin, chairman
of the Chase National Bank; William
Potter, president of the Guaranty Trust
Co., and Seward Prosser, chairman of
the Bankers Trust Co., and Thomas
w Lamont, senior partner of Morgan
& Co.
Lamont's Statement.
After the conference Mr.. Lamont
I -zlAL kN.A aSSARn
statement More tangible evidence of
a benevolent attitude on the part Of
the bankers appeared when the bids for
United States Steel were made.
The above group of bankers represent
somewhere between $4,000, 000, 900 and
81 900 0o0. 900 of concentrated and more
or less fluid banking resources. There
was, however, no definite statement as
to how far the banks would go or to
what extent these resources would be
used to buttress the crumbling prices
of the major securities.
During the tumultuous days this
week senior members of Stock Exchange
firms we're on the floor at every session
with a full representation of the LOO
individuals and member firms. In many
cases, however. the participation of the
elder statesmen was unnecessary, as
there was nothing much to do, for the
most part, but sell at any obtainable
price
Fridays upturn of the market found
thousands of disconSolate spectators
hanging around the edges with no
chance to participate. Their pockets
had been turned inside out and they
had to stand by and watch the thrifty
and cautious workers pluck the ripe
fruit. While the banking support was
regarded as partially explaining the re-
covery, it was evident that the turn
toward buying was inspired by the I'M
questioned fact that the depression had
driven many stocks far below the level
of actual values. 1t also appeared in
this recuperative session that many Of
the psychological complications of the
previous day had been relieved. The
possible wholesome def1ation had acted
like hot poultice in drawing out the
highly speculative interests. The turn
having been taken, there was of course.
the usual bullish influence of short
covering.
Effect on Country.
So far as the country at large is con-
cerned, 1t is believed that thu repercuS-
sions on business due to the stock slide
will be measurable by the withdrawal
of easy money from the luxury field
rather than by any basic effect ON the
fiscal or financial structure of the
country. While the Federal Reserve
Bank apparently has not provided quite
the restraint and guidance predicted for
it, and was somewhat embarrassed by
its tilt with the bankers last April. 1t is
indisputable that the system has made
possible mobility of capital, serving
effectively. not only in past instances,
but in this supreme and climactic test.
1t happened that the break came at
a time of comparatively easy money,
with plenty of funds available to pro-
tect sound stocks at per cent. This
alsI weighed heavily in the partial
recovery.
The resistance to the shock by the
we'll established brokerage and member
firms, with no record of collapse, verifles
the conclusion that the worst sufferers
were the incorrigible spectators who
refused to heed the ominous warnings
official sources during the last few
months. This inquirer obtained from
one broker an estimate that perhaps
five hundred thousand persons had
either been ruined or suffered serious
former, however, could offer no definite
possible conjecture is that many
have been wiped out and that in con-
ton in the market, possibly hundreds OF
thousands of small bank balances and
brokerage accounts have been swept
away.
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