The Washington times., 1933-03-04
(cOntinusd from, Page -

N$@HNe&ae&S@ Nb~"A . S&~
morning, voted to close the ex-
change today and ruled that it
remain closed until Tuesday in
order to give full effect to the
banking holiday declared in New
York State early today by Gov.
Herbert II. Lehman.
At the same time the gov
ernors Of New York Curb Ex'
change issued a similar ruling.
The Board of Managers Of the
New York Cotton Exchange also
passed q resolution closing that
exchange for the duration Of the
New York State banking holiday.
Substitute for Cash
Plans for substituting Clearing
House certificates for cash in
New York are being worked out
this afternoon by the heads of
the leading New York banks
meeting at the New York Clear
ing House. This would permit
reopening Of banks and the Sc
curity markets.
Clearing House certificates, a
form of scrip used in past bank
ing crises, are issued against de-
posits in member banks OF the
Clearing House.
While refusing to comment on
the exact details of the plan,
. Mortimer Buckner, head Of the
New York Clearing House, said
an announcement would probably
be made tonight.
Some banks were reported
against using the certificates and
working out some system of pool
ing deposits, or limiting with
drawals on the scheduled resump-
tion of business Tuesday.
Wall Street. Americas center Of
finance. accepted calmly and with
resignation the situation growing
out of the banking emergency.
No Undue Excitement
There was no undue excitement
in 1.-THE Street." The banking stu.
alton, of course. was virtually the
sole topic Of conversation wher.
ever men gathered in the finan-
cial district.
The concensus was that the &C
ton of the governor in declaring
the banking holiday and the
prompt move of the governors in
closing the Stock Exchange was
the correct policy under the cir
cumstanceS.
~ The order closing the exchange
was issued 10 minutes before the
exchange was scheduled to open
this morning for the usual short
Saturday session of from 10 o'clock
until noon.
Other Exchanges Close
Quickly upon the heels Of the
closing of the New York Stock and
Curb Exchanges came announce
ments closing the New York Pro
duce Exchange, the Chicago Stock
and Curb Exchanges. the securi-
ties market of the New York Pro-
duce Exchange. the Rubber EX-
change, the Philadelphia Produce
Exchange. the Cleveland Stock
Exchange. the Pittsburgh Stock
Exchange and the Boston Stock
Exchange.
Not since the dark days at the
outbreak of the World War had
the New York Exchange been
closed. During the crash in Sc
curities prices in the fall of 1929
the exchange was closed only for
q few hours at time to meet
emergencies such as heavy
): trading.
Closed Last in July, 1914
The exchange was definitely
closed for all day periods the
last time on July 81, 1914, fol-
lowing the shutting down Of all
European markets after war had
been declared. The action here
at that time was due to the fear
Of wholesale dumping of securi.
ties on the New York market by
the rest of the world.
Trading was resumed in the
fall of 1914 and on December IS
that year the curbs were lifted
and full trading resumed.
The first time the exchange
closed was in 1873, when the in
flationary measures which came
as an aftermath of the Civil War
caused a nationwide panic. This
closing was for only ten days.
Gov. Lehman ProcIaimS