Serious Market Break

Hawke's Bay Herald-Tribune, Volume 81, Issue 17, 13 October 1937, Page 5

Serious Market Break

-Press Assn.-CopyrigbtJ

LONDON COLLAPSE Even Gilt-Edged Issues Suffer STRONG RECOVERY LATER *

(By

Telegraph

(Eeeeived 13, 11.50 a.m.) LONDON, Oct. 12. The stock-market break is now bo serious that even gilt-edged stocks are unable to reBist it. Dealers are unwilling to take stocks; — ijfchey kavo already oVerloaded their books and are quoting wide xnargins for most eeeurities. An astonisking feature of tke collapse is tke absence of any sign of resilienee. Favourable trade iigures and record dividends alike are being ignored. Tkere is now no doubt tkat rask speculation is at the root of tke collapse. It is believed tkat tke banks are calling on customere to reduce tkeir borrowing. It appears tkat loans to speculators kave been larger tkan kave been believed formerly. Tke international uncertainties ,axe aggravating tke crisis. Tke possiliiiity tkat France will reopen ker frontier to Spain kas revive.d war-scaro talk wkick is probably being taken far too seriously. Later: Following a depressing morning^ tke stock markets staged a remarkable recovery in tke afternoon. Giltedged issues, despite a weak opening, finisked akove last night's prices. American stocks fluctuated wildly. Tke Australian Assodiated Press understands tkat bankers met privately to consider tke situation. It is believed tkat tke discussions revolved around tke difficulties of an important Dutch finance kouse, wkick kad been forced to liquidate keavily in London in order to find additional cover against outstanding loans.