when the rapid rise in the volume of
American exports began to foreshadow a readjustment in foreign
exchange, the New Street prices rose again to the Clearing House level
and a relatively small business in the "outlaw" market was transformed
into a relatively large business conducted under the supervision of
the Exchange.

It is an interesting detail, worth mentioning, that the ruling of the
Committee quoted above, which established a market in the Clearing
House, used the permissive word "may" in stating that orders to buy
and sell might be sent to that institution. This was soon taken
advantage of by a few individuals who proceeded to conduct private
transactions among themselves. Their excuse was that if transactions
were merely permitted in the Clearing House it became optional as to
whether they should take place there or elsewhere. Within a few days
thereafter the Committee amended the ruling by substituting the word
"must" for the word "may." The great responsibility attached to
promulgating rulings, which were to be the law during this critical
period, is made more apparent when it is realized that the ill
considered use of a single word might bring on unforeseen and perhaps
dangerous consequences.

During the month of August a constantly increasing pressure from every
conceivable direction was exerted to break down the dam with which the
Committee was striving to hold back the natural flow of dealings in
securities. By letter and by personal appearance before the Committee
individuals, in and out of the Exchange, strove to induce them to
countenance transactions at prices below the arbitrary level of the
closing. In addition to this agitation among individuals and firms,
restlessness began to show itself in some of the other Exchanges. At
one time the Stock Exchange of a great neighboring city, which had
permitted restricted dealings exactly similar to those carried on in
New York, wished to have those dealings regularly quoted in the
newspapers; at another time a movement developed on the Consolidated
Stock Exchange to establish some kind of restricted public dealing on
their floor. The Committee of Five were obliged to labor hard and
assiduously to hold this pressure back and keep the dam intact, and
its efforts were ably and loyally seconded by the Committee of the
Bank Clearing House whose great influence was unremittingly exerted to
prevent the danger of premature action of any kind.

On September 1st