plete embargo on the marketing of securities. Naturally
enough, so absolute a restraint brought on a pressure which was bound
to force a vent somewhere. At first an occasional group of mysterious
individuals were seen loitering in New Street behind the Exchange. A
member of the Committee of Five, who was prone to see the humorous
side of things even in those dark days, remarked as he observed them
late one afternoon "the outside market seems to consist of four boys
and a dog."

Before long, however, this furtive little group developed into a good
sized crowd of men who assembled at ten o'clock in the morning and
continued in session until three in the afternoon. At first they met
immediately outside of the Exchange, but later they took up a position
south of Exchange Place and close to the office of the Stock Exchange
Clearing House. Their dealings increased gradually as time went on and
never ceased entirely until the Exchange reopened. In all probability
the existence of this market was a safeguard as long as its dimensions
could be kept restricted. An absolute prohibition of the sale of
securities, if continued too long, might have brought on some kind of
an explosion and defeated the very end which it was sought to
achieve.

This irregular dealing, as long as it remained within narrow limits
and was not advertised in the press, furnished a safety valve by
permitting very urgent liquidation. It was, however, continually
accompanied by the great danger that it might grow to large and
threatening proportions. If, in consequence of the facilities which
these unattached brokers were offering, responsible interests should
begin to take part in and help to create an open air market, the very
disasters which the closed Exchange was intended to prevent might be
brought about.

It was necessary, therefore, that the Stock Exchange authorities
should do all in their power to hold the development of this market in
check. With this end in view they not only prohibited their own
members from resorting to it, but they exerted what influence they
could upon others not to lend it their support. The banks and money
lenders were urged not to recognize the declining prices which were
established there as a basis for margining loans, as such recognition
might tend to increase the dealings. One or two large institutions
which, at first, were disposed to finance the operations conducted in
the Street were persuaded to refrain from cont