the Clearing House banks were anxious to determine
what was the amount, measured in money, of securities sold in New York
by Europe and not yet received. The object of obtaining this
information was to know what demand would be made upon the loan market
if, at any time, these securities should be shipped. At the
suggestions of the bankers the Committee of Five summoned before them
representatives of all the houses doing a foreign business and
requested them to send answers, as promptly as possible, to the
following two questions:

_First:_ "Amount due Europe for securities received to date and
not yet paid."

_Second:_ "Amount due Europe for securities already sold but not
received from Europe."

On the following morning answers were handed in showing that the
amount received and not yet paid for was $699,576.11, and that the
amount due Europe on securities sold but not yet received was
$18,236,614.15. The rapidity and accuracy with which this important
information was obtained, without any publicity or disturbance of
confidence, is interesting as showing the efficiency of the intimate
cooperation between the banks and the Stock Exchange.

* * * * *

Among the many agencies for dealing in securities, whose activities
were suddenly cut off on July 31st, the first in importance next to
the Stock Exchanges themselves were the so-called bond houses. These
firms, which included in their number many prominent private bankers,
were dealers on a great scale in investment bonds, and when the
thunderbolt of war struck they were carrying large lines of those
bonds on borrowed money which, in the ordinary course of events, would
have been placed among their numerous clients. When the crisis of
early August had developed, all these houses (some of them not being
members of the Stock Exchange) loyally cooperated in closing up the
market, and abstained from negotiating their securities even in the
most private manner. By the middle of August, however, a number of
them began to show decided restlessness over the embargo upon their
business. The cutting off of their accustomed income, while expenses
continued as usual, was not what influenced them, for this hardship
was shared by all Wall Street, but the enforced carrying of securities
in bank loans at so critical a time when they felt that these
securities might be disposed of became a grievance.

It was urged by many of them