Wall Street 'Jitters'

Hawke's Bay Herald-Tribune, Issue 209, 20 September 1937, Page 5

Wall Street 'Jitters'

-Praes ABsn,-

HEAVY BRITISH LOSSES JVave After Wave of Sellinsr LONDON MARKET REACTS

(By Tplegraph-

-Copyright,)

(Eeceived 20, 10.30 a.m.) LONDON, Sept. 19. Wall Street is rapidly becoming reeovery's "Publie Euemy No, 1, ' ' The Lon'don market was unprepared for the wav© after wave of selling on Wall Street which moved oven Mr jtoosevelt to deelare that investors were suffering from the ' ' jitters. ' ' Mr Eoosevqlt's administranon, however, must bear a whare of the responsibility for the present debacle. iiis anti-spequlation measures have destroyed the market 's normal eushion; consequently, unfavourable news produces the maximum havoc. Moreover, Wall Street seems to laek London'a inherent sanity and behavea as though war was only a minute away. Wall' Street 's behavi.our has been a direct as well as indireet shock to British investors, who backed Aineriean recovery to the extent of 440,000,000 dollars. The heavy losses many of thenx had to faee were iargely responsible for the liquidation which has given London brokers the most unhappy week of the year. The market for gilt-edged investments has been the sole bright spot, Dominion . shares sharing the firmness. Movements of foreign loans have been wide and erratic. Industrial shares are mostly lower after their 'severe test in mid-week, when rumours of provineial difficulties were widespread but remained unconfirmed. Oil shares are not convincing. Eubber shares failed to reepond to the strength of the commodity. Commodities also are disappointing, though comparatively steady compared with the stoek markets. The sharp break in metals on September 16 appears to have been due to the liquidation of the stale bull account built up early in August, and also to the unfavourable copper statistics. The demand for butter has improved and consumption is satisfactory, though Bubstantial price advances are not expected,