uced at that time. The actual
amount of stocks sold to arrive, against which borrowings had been
effected in New York, was finally shown to amount to $20,000,000. That
this amount was not increased at an embarrassing period in these
important negotiations was due in large measure to the action of the
Committee in calling together the various foreign arbitrage houses,
and securing from them an agreement to cable to their correspondents
in Europe not to make further shipments of securities, because
borrowed stocks could not be returned and deliveries effected. This as
it turned out was an important step in the right direction.

* * * * *

Owing to the sudden and severe pressure of business to which the
Committee of Five was subjected almost from the moment of its
organization, some matters were unavoidably overlooked which should
have had immediate attention. Conspicuous among these was the question
of the rate of interest to be charged upon open contracts which the
action of the Governing Committee had suspended. This matter was not
reached until the meeting of August 4th, when the following ruling
was made:

"The Special Committee rules that interest on the delivery at the
rate of 6 per cent. shall accrue from August 5th on all unsettled
contracts for delivery of securities, except that interest shall
cease when a receiver of securities gives one day's notice to a
deliverer that he is ready to receive and pay for same.

"The Special Committee further rules that sales of bonds on July
30th carry interest at the rate specified in the bond to July
31st, and that between July 31st and August 5th they are 'flat';
interest thereafter to be 6 per cent. on the amount of money
involved, subject to the exemption stated in the previous
ruling."

In view of the fact that no action had been taken up to August 4th and
that a number of private settlements had been arranged in the meantime
the Committee thought it wise to avoid a retroactive ruling, and
imposed the 6 per cent. rate from August 5th. Injustice was done, in
some cases, by permitting a lapse of five days when no interest charge
was required, but this injustice was cheerfully borne owing to the
unusual exigencies of the situation.

On this same day the Committee received the first communication which
indicated that some members of the Exchange had not yet appreciated
the necessitie