SHARP REVERSAL

Hokitika Guardian, 22 July 1933, Page 5

SHARP REVERSAL

U.S. STOCK MARKET

FINANCIAL PYRAMID TUMBLES

(By United Press Association’s Special Representative).

NEW YORK, July 20

United States Administration offi-

cials are watching with considerable apprehension ..a development in the commodity and securities markets, * both of which suffered sharp .rever--1 sals to-day, which are attributed, partly, to a top-heavy speculative situation. and partly to the somewhat- irregular development of the new industrial control programme and the position of the dollar in international exchange. If is feared that the speculative fever might result in a debacle si mi la., to that of the 1929 crash. The financial ipyram’d has again tumbled in a spectacular fashion. C°rnnKxiities iaind ■ stock suffered price losses that were comparable only to the collapse in October of 1929. Stocks lost two point eighteen points on a turnover of eight million ono hundred : and eighteen thousand shares. This; is the largest volume of share trading j since May 5, 1936. ' I Fifty of the .principal stocks de- j dined bv 6.49 points. That is comparable to the greatest single day’s decline in 1929 of 11.5 points.

The decline in the value of commodities has been even more striking. Wheat lost up to 15j- cents per bushel, maize 12£ cents, oats 10 cents, and rye cents, while cotton lost four dollars per bale. The exception of the decline was <tihe dollar, which ha.s recovered 18 cents in value reaching to 4 dollars 64 cents as against sterling. This recovery was due to the announcement of the plan of Britain to convert her 5-J per cent, dollar maturing loan in 1937 into sterling obligations at the rate of >£26o for each ono thousand dollar bond.

Senator Thomas, commenting on the fact that the Administration is intent on curbing speculation, indicated that a price fluctuation limit, and a fair practice code for the Stock Exchange might be demanded, as it concerns industrial recovery scheme. A;t the direction of President Roosevelt, the Secretary for Agriculture. Mr Wallace, has moved to halve the grain speculation, by restoring the requirement that all long and short accounts of 500,000 bushels or more on the Chicago Board of Trade and on other exchanges must be reported daily to the Grain Futures Administration. DOLLAR’S STRIKING RISE. LONDON, July 21. The “Daily Telegraph’s 1 ’ financial editor says : On Thursday there was a , striking recovery of the dollar. This! is attributable partly to profit-taking | by the speculators, who regarded the old parity as a milestone beyond which, they believed, the dollar would not travel .far. To some the recovery may be due to American purchase here of the five and a half per cent, gold bonds.

NEW U.S. INDUSTRIAL CODE

WASHINGTON, July 20

President [Roosevelt to-night ap proved .in its entirety a general voluntary governing code of minimum wages and shorter working hours for United .States industry.