STOCK MARKET.

Manawatu Standard, Volume LVIII, Issue 52, 29 January 1938, Page 2

STOCK MARKET.

DECLINE IN NEW YORK. NEW YORK, Jan. 27. After rallying this morning, trading on the stock market plunged to new low levels, the closing hour carrying prices four points down, bonds losing sympathetically. Market experts said the decline was purely technical.

SERIOUS BREAK. EFFECT OF SPEECH. NEW YORK, Jan. 27. Approximately a billion dollars’ value has been shorn from stock prices in the most serious break since November 22, 1937. Losses of 741 points were registered. Leading bond issues lost similarly. Wheat closed two cents lower and commodities were generally weaker. Mr Roosevelt’s wages statements on Tuesday is believed to have had a depressing effect on the markets.

A Washington cablegram recently stated that President Roosevelt had made to the Press a significant statement designed to stop wage-cutting, 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 of maintaining the purchasing power of the worker, “industrialists kill the goose that lays tho golden eggs when they keep up prices at the expense of employment and purchasing power, or cut wages and thereby reduce purchasing power. Either policy is suicidal,” said tho President.