ported
back "at the earliest possible moment." Clearly here was an impossible
situation. The immense detail of the work which was beginning to
unfold itself could never be handled by so large a body as the
Governing Committee itself. Realizing that this difficulty must be met
without a moment's delay the Committee of Five requested the calling
of a special meeting of the Governors for twelve o'clock the same day
and presented to them the following resolution, which was unanimously
adopted.

"RESOLVED: That the Special Committee of Five, appointed by the
Governing Committee on July 31st, be, and it hereby is,
authorized during the present closing of the Exchange, to decide
all questions relating to the business of the Exchange and its
members."

This action of the Governing Committee, while it was rendered
necessary by the peculiar requirements of the situation, was
unprecedented in the history of the Exchange, for never before had
such powers and such responsibilities been put in the hands of so few
individuals. It was one of a series of "war measures" by means of
which ends were achieved that would not have been reached in any other
way.

Clothed with complete authority the Committee met again in the
afternoon of August 3rd and was at once confronted with a request for
a ruling on the question of how far members were to be restrained from
dealing outside of the Exchange. After a lengthy discussion the
following was approved as their opinion.

"It was the intention in closing the Stock Exchange that trading
should be stopped and it is the duty of loyal members to comply.
If cases come into your office where it is absolutely necessary
to trade, do so as quietly as possible and prevent the quotation
from being published."

It will be noticed that the policy adopted here was less stringent
than what came later when the growth of an outside market increased
the dangers of the situation.

* * * * *

With the question of outside dealings there at once arose the closely
connected question of the danger arising from having price quotations
of such dealings made public. The quotation machinery of the Exchanges
had been silenced by the closing of those institutions, but there
remained the public auctioneers whose sales, if they took place, would
be disseminated by the press and might spread panic among security
holders and money lenders. T