SERIOUS BREAK

Evening Post, Volume CXXV, Issue 23, 28 January 1938, Page 9

SERIOUS BREAK

NEW YORK STOCK PRICES

CAUSE ASCRIBED

PRESIDENT'S WAGES STATEMENT

(United Press Association—By Electric Telegraph—Conyrleht.)

NEW YORK, January 27.

Approximately 1,000,000,000 dollars in values was shorn from stock prices in the most serious break since November 22. Losses of 74£ points were registered by leading issues, and bonds lost similarly. Wheat closed two cents lower, and commodities were generally weaker.

The stock market turnover was 1,606,000 shares, the second heaviest for the year. The decline was the widest since December 13. Feeble attempts to rally the market failed, and the final prices were mostly near the day's lowest levels. .

President Roosevelt's wages statement is believed1 to have had a depressing effect on the markets.

The "New York Times" says that financial circles took the pessimistic view that the President's statement nullified the most v recent optimism based on the hope of' co-operation between business interests and the Government.

A Washington cablegram published yesterday stated that President Roosevelt had made to the Press a significant statement designed to stop wagecutting arising from business recession. He said that wage reductions in industry made workers carry the burden of business relapse, which was just as unfair as if the bond holders were made to do so. He stressed the necessity for maintaining the purchasing power of the worker. "Industrialists kill the goose that lays the golden eggs when they keep up prices at the expense of employment and purchasing power, or but wages and thereby reduce purchasing power. Either policy is suicidal," said the President.