TRADE RECESSION IN U.S. Steps To Lift Market Out Of Doldrums

Chronicle (Levin), 30 March 1949, Page 5

TRADE RECESSION IN U.S. Steps To Lift Market Out Of Doldrums

(N.Z.P.A.—

-Reuter*

Copyright)

Rfeceived Tuesday, 6.5.0 p.m. WAJSiiiNvji'rOlN, JVxarcii 29. The hhaerai tfeserve Jboarci iias reduced the casli duwu paymeui required on stock purehasea from 15 to 50 per cent»o£ the price oi securities effeetive on Mareh 30. This aetion has lohg been demanded by securities ' dealers and by Mr. Emil ^cram, president oj. the New York Stock Lxchange, in the hope that it would lift the markets out of the doldrums that have kept trading at an unusuaily iow level for months. The Reserve Board explaiiied that it was relaxing margin requirements "in the light of tht general credit\ situation. ' ' This was a strong indieation that a Board beiieved inflation had eeased to dominate the economic situation. Broadcasting tonight Mr. Marriner S. Eceles, a member of the Reserve Board, said he beiieved the United States had been in a recession for several months. H-e said that while the nation was without question in a reeessionary period it would be a mistake to try to shore up economy at foo high a level. Mr. Eccles described the easing in prices and business activities as healthy and said the United State^ had economic "cushion-s" it could use to prevent too great a recession. He warned, however, against using too many cushions now for fear of running into serious tronble later with no extra cushions left. Mr. Eccles indicated that the easing of margin reqnirements might be the forernnner of future rrovernment aetion to prevent further priee drops. He said such moves. might consist of lowering the bank reserve requirements to loosen lending aetivities and a furt.her easing of consumer credit regulations. *