Markets Crash then Recover

Hawke's Bay Herald-Tribune, Volume 81, Issue 56, 29 November 1937, Page 5

Markets Crash then Recover

— Press As6n.— (

LONDON EXCHANGE Minister Stresses Britain's Soundness ECONOMIC STRENGTH

(By Telegraph

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(Eeceived 29, 11.20 a.m.) LONDON, Nov. 28. After crashing to their lowest levels of the year, the stock markets staged a spectacular recovery and finished the week firmly. It is becoming increasing diflicult to forecast ehanges in sentiment. The Economist considers that there is no new reason to aecount for Monday's eollapse. Similarly, it is difficult to rationalise the subsequent recovery. Probably it was partly due to bear coveriug, partly to the feeling that souud stocks had been allowed to slip too far. All financial authorities ' stress the importanee of better business activity in the United States as the prerequisite of r'evival. They point out that commodity prices largely depend upon the United States. The Chancellor of the Excheqtter, Sir John Simon, in a speech at Nottingham, referred to the "malignant pessimism" charaeterising some of the prevalent comment on the recent setback in the security and commodity markets. Sir John deprecated . this attitude. The country, he said, was economically slrorg and its recent history showed with v.hat firmness it could resist eeonoruie shoeks and how great was its xecuperative power., If in future they were called upon to face a trade decline, they were in a far better position to meet it and deal with it than they had been in the great eollapse of 1931. The recovery from that depression was a solid fact. The industrial activity, the increase in the national savings and the pr'oductivity of revenue were all reassuring sigus. The .Chancellor said that nothing would contribute more effectively . to the ultimate foundations of world peace than the preservation and promotion of a good understanding between Britain and the United States. The announcement that the preliminary discussion had gone far enough to justify the openlng of negotiations for au Anglo-American Trade Treaty gave new hope. Eeferring to rearmament, Sir John Simon said that Britain's programme had reinforced the nation's influence and authority in world affairs. Armaments, however necessary, were no substitute for political appeasement, which Was the only real basis of peace, and which was the direct object of the Government's constant endeavours.