The New York Stock Exchange in the Crisis of 1914 by Henry George Stebbins Noble (portable ebook reader .txt) 📕

their integrity of purpose than there would be to doubt that

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