"The Clearing House Committee and the Stock Exchange Committee
have expressed appreciation of the cooperation shown by the
dealers in listed and unlisted securities and if all will
endeavor to live up to the spirit of the policy thus far adhered
to we are sure there will be no cause for criticisms on the part
of the banks or the Stock Exchange Committee.

"Your Committee of Seven will continue to meet in the Directors'
Room of the Chase National Bank daily, from 11 A.M. to 12 M., for
advice on any cases where we can be of any assistance whatever."

The practical plan adopted was as follows:

Bond houses having securities of their own for sale could place them
with their clients at prices approved by the Committee of Seven. All
purchasers and sellers of bonds, acting as brokers only, were required
to file their orders with the Committee of Seven when dealing in
unlisted bonds, and with the Stock Exchange Clearing House when
dealing in listed bonds, and these two agencies were empowered to
determine minimum prices below which sales could not be made.

It will be seen that a very important step in the direction of
relaxation of restraints was here taken. Not only was the prohibition
of all dealings which had marked the beginning of the crisis
withdrawn, but prices below the closing sales of July 30th were to be
permitted subject to the supervision of a Committee.

* * * * *

As has already been stated, the Committee on Clearing House had their
hands full from the time the Exchange closed, first with bringing
about the settlement of the contracts of July 30th, and secondly with
carrying on the business of making new contracts for members wishing
to trade in securities at or above the closing prices. It was
impossible, therefore, for the members of that Committee to give
personal attention to the difficult problem of determining the prices
below which listed bonds should not be sold. To meet this difficulty
it was decided that a small additional Committee of men known to be
thoroughly familiar with the bond business should be organized, and
that it should be their duty to control the liquidation of listed
bonds.

The carrying out of this plan at first met with a technical obstacle.
The power to appoint a Special Committee rested exclusively with the
Governing Committee of the Exchange; in order to secure action a
special meeting of that body w