The New York Stock Exchange in the Crisis of 1914 by Henry George Stebbins Noble (romantic books to read TXT) 📖
- Author: Henry George Stebbins Noble
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of any individuals who might take their place.
A firm stand was thus taken in defence of this new Committee, and they
succeeded in carrying on their work successfully up to the time when
the amelioration of conditions enabled them to disband. It must be
regretfully recorded, however, that the petty jealousy and distrust
which had appeared in connection with this episode continued to show
themselves in a desultory way until the end. A few individuals threw
what impediments they could in the path of this Committee, and thereby
furnished the only exception to the wonderful exhibition of loyalty
and self effacement that manifested itself in every other department.
* * * * *
When the Exchange suddenly closed its doors, an immense number of
people, consisting of employees of the Exchange itself and the
clerical forces of all the many brokerage houses, were rendered idle.
As soon as it became evident that the suspension of business was going
to be indefinitely prolonged, the grave question arose as to the
extent to which these people would be thrown out of employment. The
Stock Exchange at once set the generous example of deciding to retain
its entire force without reduction of wages, and this decision was
carried through for the entire four and one half months of suspension.
A more difficult problem, however, confronted the brokerage houses.
Many of these firms had very heavy office rents and fixed charges of
various kinds; their business had been showing meager profits and even
losses for some years and, the length of the period of closing being
impossible to forecast, they did not dare to undertake burdens that
might get them into difficulties. The result was that a few strong
houses, with philanthropic proclivities, carried their clerical forces
through on full pay, but the majority were obliged to cut them down in
various ways. In some cases the full force was retained on greatly
reduced salaries, in others salaries were reduced and part of the
force discharged, and the net result was that a great number of
unfortunates were either thrown into unemployment altogether or placed
in very straightened circumstances.
It is an interesting fact, bearing on the popular superstition that
Wall Street is peopled by unprincipled worshippers of the dollar who
are incapable of those finer qualities of character which are confined
exclusively to other walks of life, that there is no region in which a
quicker response to the call of the needy can be obtained than on the
floor of the Stock Exchange. Even though the brokers were facing an
indefinite period of starvation themselves, with expenses running on
one side and receipts cut off on the other, the moment it became clear
that severe suffering had come upon the clerical forces of the Street
a movement was at once set on foot to start measures of relief and
assistance. Perhaps the best way to convey an idea of the form which
this assistance took is to quote from a report on the subject made by
one of those who generously gave his time to the work. What follows is
in his own words.
"A phase of the extraordinary and unprecedented conditions prevailing
in the Financial District, commonly known as 'Wall Street,' was the
necessity for cutting down office expenses, and though many firms
carried their salary list intact, a considerable number laid off from
one half to two thirds of their employees, and subsequent events
developed the fact that some of them discharged practically their
entire force.
"About the middle of September, the distress said to exist among the
Wall Street employees, who had lost their positions as a result of the
war in Europe, prompted Mr. C. E. Knoblauch to suggest that some
concerted action be taken to meet this emergency, if only as a
temporary expedient. A number of informal discussions of the subject
with fellow members of the Exchange, and further evidences of the
existence of a wider field for the work than was at first realized,
culminated in a call for a meeting in the office of Tefft & Company
and immediate organization.
"Officers having been duly elected, the personnel of the Committee was
declared to be as follows:--James B. Mabon, W. H. Remick, Graham F.
Blandy, R. H. Thomas, W. W. Price, G. V. Hollins, C. E. Knoblauch, C.
Housman, G. M. Sidenberg, Townsend Lawrence, T. F. Wilcox, Erastus Tefft, Chairman; Charles L. Burnham, Secretary; Edward Roesler,Treasurer.
"The title of the Committee was formally agreed upon as 'The Wall
Street Employees' Relief Committee.'
"Through the courtesy of Mr. Clarence Mackey, the offer of a suite of
rooms on the second floor of the Commercial Cable Building, 20 Broad
Street, for the use of the Committee, at no charge for rent, was
gratefully accepted, and arrangements for occupation were made at
once. Mr. Oswald Villard, through a member of the Committee, evidenced
his interest by offering temporary use of rooms in the _Evening Post_
Building for the purposes of the Committee.
"It was determined that the principal object of the Committee would be
to act as an Employment Bureau, to find positions for unemployed and
to relieve distress where it was found to exist. It was understood and
arranged for, that any Wall Street employee who had lost a position as
a result of the war was eligible, and that no fees whatever be
charged. A circular letter was sent to Stock Exchange members and
firms appealing for subscriptions, and the matter of selection of a
depository of the funds was referred to the Treasurer with power. The
work of receiving and recording registration blanks commenced with a
rush, over one hundred and fifty were filed the first day, and in a
few weeks they numbered over one thousand.
"A very pleasant feature of the work was the cordial coöperation
encountered on all sides. Helping hands were extended everywhere. The
newspapers gave many 'reading notices,' and special advertising rates,
and the news bureaus printed any and all notices as and when
requested. The Stock Exchange Library Committee and the Secretary's
Office placed their typewriting, multigraph and circular printing
facilities at the Committee's disposal, furnished the rooms with
desks, chairs, etc., and supplied all necessary stationery. The Stock
Exchange force of telegraphers and other employees practically in a
body volunteered their services, and those selected were of great
assistance in preparing the card index system, which was used and
found to be practical and eminently satisfactory. Appreciated
assistance was promptly tendered by The Telephone Clerks' Association,
The Association of Wall Street Employees, and The Wall Street
Telegraphers' Association.
"Several cases of sickness, some very serious, were taken care of by
Dr. L. A. Dessar, who gave free medical service to all applicants
recommended by the Committee, and provided hospital treatment when
required. The declarations made by the applicants demonstrated beyond
any question that the number of men, women, girls and boys for whom
prompt assistance in procuring employment was imperatively necessary
had been greatly under-estimated, and evidenced an absolute argument
endorsing the reasons for the Committee's existence.
"Many who applied were not in immediate need of money, but wanted
employment, which the members of the Committee sought for them by
individual solicitation of everyone they knew, or knew of, who were
employers, and also by careful, judicious and timely advertising in
the daily papers. Such satisfactory results were attained, that up to
date of this writing, (May 15, 1915), of over seventeen hundred
applications received, permanent positions were secured for about
seven hundred at rates of compensation that were distinctly
gratifying, all conditions considered. Two hundred and thirty were
placed in temporary jobs for periods ranging from a few days to
several weeks, a number of them being re-employed two or three times.
Four hundred and ninety, having been taken back by their former
employers, withdrew their applications.
"Numerous positions obtained for applicants while the Exchange was
closed were in lines other than Stock Exchange business, and Wall
Street clerks notwithstanding their recognized efficiency being, so to
speak, specially trained, it was often found to be difficult, even
impossible to make them fit the kind of work to which they were more
or less strangers. In view of the fact that this circumstance made
the accomplishment desired necessarily slow, the outcome demonstrated
that it was reasonably sure.
"The request for subscriptions to the fund met with a hearty and
generous response. Some apprehension was felt in this regard, but the
splendid result proved to be an agreeable surprise. Appeals for
subscriptions to the fund were made only to Stock Exchange members and
firms, nevertheless, thanks to the general interest manifested, and
the widespread advertising consequent thereto, contributions were
received from generous friends outside of Wall Street, to an extent
that was simply astonishing. Checks for $1,000 each were not unusual
items, and as a rule the request was made, 'please do not publish my
name.' A well known artist, in addition to a cash subscription,
presented one of his paintings to the Committee. Through the kind
assistance of the Chairman of The Stock Exchange Luncheon Club, the
picture was sold for the substantial sum of $500.
"The Treasurer, with ample funds at his disposal, was able to meet
calls for financial help that were frequent and pressing, and
recognizing the desirability of experienced and competent assistance
in making the necessarily intimate inquiries, to determine if
applicants for relief were worthy, he applied to Mr. Robert W.
DeForest, President of The Charity Organization Society, for expert
advice in the matter, and was referred by Mr. DeForest to Mr. Frank
Persons, Manager of the New York Bureau, and Miss Byington, in charge
of the Brooklyn Branch, who rendered invaluable services in
connection with many of the applications, all of which were carefully
investigated. Much suffering and distress, and some cases of actual
destitution were found to exist, and while a detailed statistical
statement would seem uncalled for and not desired at this time, the
following brief résumé of the Committee's 'relief work' will
undoubtedly prove to be of interest.
"Financial assistance was extended to about one hundred individuals
and families; rent was paid for thirty-nine; food purchased for
forty-six; clothing was furnished in seven instances; five persons
were placed in hospitals; there were a considerable number of cases
where the Committee in whole or in part took care of funeral expenses;
old debts for medical attendance and drugs; agency fees and surety
bonds; life insurance premiums, board and lodging, etc., etc. Many
applicants for assistance proved to be merely temporarily embarrassed,
they were willing and anxious to be helped but did not want charity,
so to meet that emergency a form of voucher was used, which
acknowledged the receipt of a 'loan' without interest, to be repaid at
the convenience of the 'borrower.' That applied to _cash_ of course,
payments for groceries, rent, etc., were simply receipted for.
"The results achieved, in the opinion of many, would seem to warrant
an amendment to the original idea that a return to normal conditions
would involve the dissolution of the Committee, and the proposition
that it be made a permanent organization is being seriously
considered."
This record is deeply gratifying to the brokerage fraternity because
it discloses the fact that, even in the midst of a calamity so great
that no individual could feel himself beyond the reach of insolvency,
the impulse to succor the unfortunate remained as strong as ever among
them.
CHAPTER III THE REOPENING OF THE EXCHANGE
The fact that the Stock Exchange closed on July 31st and did not
reopen fully until December 15th, might lead to the supposition that
the question of reopening was not taken up before December. Far from
this being the case, the truth is that reopening began to be discussed
immediately after the institution was closed. Within twenty-four hours
of the closing the minority, who had not been at first convinced of
the wisdom of that action, joined with the majority in urgently
advising that the Exchange be not reopened soon. All through the month
of August a growing anxiety over the possibility of some hasty action
by the Exchange authorities showed itself among brokers, bankers, and
even some government officials. For this anxiety there was never any
basis, because the officers of the Exchange having exceptional means
of knowing what
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