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Evening Post, Volume CIX, Issue 100, 30 April 1930, Page 14

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■RECESSION IN NEW YOEK

PSYCHOLOGICAL REACTION

United Press Association—By Electric Tel«;raph—Copyright. (Received 30th April, 12.5 p.m.) NEW YORK, 29th April. Psychological reaction, based on the many unfavourable company reports for the first quarter of 1930, brought about a two days' sharp recession in the stock market. Reduction in the, price of copper and declines in wheat and raw cotton prices caused drastic selling, and all sections of the market were affected. Despite the desperate efforts of the bulls to stay the reaction, United States Steel common reached the new low level of 182. Anaconda Copper went below CO for the first time in three years. The losses throughout the list were, however,.in great part recovered in the final hour of business upon reports of Bhort covering. STEADIER TONE IN SYDNEY SYDNEY, 29th April. ■ The Stock Exchange in Sydney. _ reopened to-day after the Easter vacation. The turnover was moderate, but there was a steadier tone. Much interest centred on Commonwealth Government loans, in which a gendral advance beyond the amount of accrued interest occurred. The possibility was freely discussed of a reduction in the interest rate on. Government securities, and of the new Commonwealth loan being offered to yield a fraction below 6 per cent. The improvement in the wool marEet and rains in the parched areas produced a feeling of greater.optimism. The Commonwealth Loan above referred to" is for £10,000,000, wlmh.it is intended to raise locally next moiroi.. Referring to this latest intention to borrow in the local market, Wellington financial opinion sought and obtained yesterday was.to the effect that no difficulty should be experienced in raising the £10,000,000 required. "In any case, the Commonwealth Government wants the money;" it was explained, "and it will get it—have to get it." ."But (it was suggested) 'surely the supply is not inexhaustible. Why, it was only the other day, 15th April in fact, that the March 6 per cent, local loan for. £10;000,000 was oversubscribed; and not only it but a total subscriptions in cash and conversions left but £18,000,000 to 'be found towards meeting the £70,000,000 odd due during the whole year of 1930." "Admitted; but Australia is not quite like New Zealand. There is more money available ' there "' i'To-day?" "Yeß; today. Moie money—and fewer second mortgages."