"CRASH” ON NEW YORK EXCHANGE.

Taihape Daily Times, Volume XI, Issue 3395, 28 January 1920, Page 7

"CRASH” ON NEW YORK EXCHANGE.

SLUMP FOLLOWS ERA Ol‘ WILD GAMBLING. SPECULATOBS FACE RsUl.\' . NEW YORK, l\"o\v'. 1:3. Vast fortunes fortunes. . “on paper,” which at one time seemed to have all the glitter of solid wealth—— forfunes which were built up in past months of reckless bobnling—were wiped out on the Stock Exchange in a few hours yesterday afternoon. From minute to minute, up to 200 minutes, amid scenes of frenzy and anguish, the rates 011 call money were raised, and raised up Ito 30 per cent. while on time money rates rose and rose up to 14 per cent—the highest since the panic of the autumn of 1907. And there was little of either kind available. ' Stocks fell several points between sales as the panic seized =lhe “bulls,” and they threw their lic-ldiiigs overboard. Quotations in -some of the “Industria.ls‘.” with which the market: had been playing shuttlecoek, cl‘{ls]lod down 10. 20, 30, and——in the case of General M'otors—«'(3Ba§ points. SWIFTER THAN THE WIRES. The “ticker” could not keep pace with the changes. but continued to I'CCol'd stiles for 41 mfliiutes after the E gong had put an end to ‘trading.

'i‘l'ansac.tions for the day totalled 2.587.400 shares-111p largest turnover since December 16, 1916, the time of the culminavtion of the German peace kites, designed. to “dish” the Allies and keep A.mericu out of the *.v.9.1‘.

Gonor :11.\[0t01‘sA, wlli(',]l 10d the dc~ Cline, and which were quoted last week M 4013, opened at 348;, and sold down to 280.

Goner2ll'l\lotol's, which led "the doAssckciatcd Oil dropped. 35; Baldwin Lc-comotivo dropped 21;}; and those were only pl'olude§ to 01' concomitan‘rs of other sta.l't.ling declines. EFFECTS ON LABOUR.

The raising of money rzrfos was the moasur<‘. which \\'as adopted by the Fedol':llßosel'\'o Bank authorities to cahor.-k the wild spoculatioii that has been going on in stocks and commodities, and which is held largely responsible (as .the New York \Vorld puts it‘) “for the p3pul'.ll' discorrient and the I'p:<oiti.ilg of .2111 reason in Labour ’s ('lO- - of hours 311:1 wages.” A conference of bankers was held here last evening. however, and con-.-'i(‘.<*l'od ways uni! means for meeting" the .~:it'natirm shonhi it got out of lizmd. ' COTTON. All this o.l+a.~'h on tho Stock Exchange was I'ofioc'fud on the Cotton. Ex(-,h.a.ngo, whom tho I“,'ol'cod closing of sp-eciilativo m-coinlfs rosuitud in prices falling so sh';},‘l‘]7l_\' tlmi the “two hun-drcd point,” or 10 dollar a halo limit-allowod unJvr tin» rules—wag- reached some. time before the closing hour, and trading virtuially ceased.

Foreign cx(:ham;'o rates also sufl’ermil. Demand sterling broke to 2L new low rncm-d of 4 dollars 101]‘ cents to the pound; French francs sold for 9.50, and the Italian lire fcached the unprecedented figln'c of 12.85.