SELLING PANIC

Ashburton Guardian, Volume 50, Issue 12, 25 October 1929, Page 5

SELLING PANIC

NEW YORK EXCHANGE. THE WORST BREAK IN HISTORY. SERIOUS POSITION ARISES. "United Press Association— Copyright.) (Received This Day 9.35 a.m.) NEW YORK, October 24. The most terrifying selling panic since the war days of 1914 dealt a crushing blow to leading stock markets in the United States today, and was checked only by the prompt reassurances from the country's leading bankers. All records of frenzied trading were broken in New York with the day s £kTof approximately 14,000,000 shares, with billion sof dollars of quoted values eliminated.

Shares were dumped overboard for whatever they would bring. There was a substantial upward movement late in the afternoon, but. the closing quotations of most of the leading issues disclosed severe declines. The reason for the wild rush to unload is not ascertainable. .. Continuing its spectacular decline, the New York Stock Market experienced what may be the worst in its history. Four thousand million dollars' worth of paper profits were wiped out in less than three hours' trading, which is twice the amount in the same period yesterday. The tickers were 80 minutes behind sales at 1 o'clock, and scenes of the utmost confusion reigned on the floor of the Exchange, with brokers frantic. Wave after wave of selling mowed down prices until all the leaders crashed down through the resistance barriers. . Traders in the meantime surged about the brokers' offices watching their holdings wined out, such scenes* ensuing thereby as have rarely if ever been witnessed before. * The situation took such a serious aspect that bankers held meetings to determine some way of stemming the flood of offerings. It is understood the Board of Governors held a meeting to discuss the advisability of temporarily \ closing the Exchange, but it was decided to keen open as usual, and the Governors themselves took the floor ot the Exchange and began buying. Ibis inspired some confidence and appeared likely to turn the tide. - In the meantime rumours throughout the financial district that the Exchange had actually closed caused nearlv a panic in some quarters, especially in conjunction with similar reports regarding the Chicago and .Baltimore Exchanges, but rumours were quickly denied from all three cenNevertheless the chairman of the Baltimore Exchance admitted that his board had considered the possibility of temporarily closing, because they had heard a report that the New York Exchange was discussing a similar step a"d Baltimore would likely follow suit.—Australian Press Association.

WHEAT PRICES RALLY. THE MILLIONTH MARK PASSED. (Received This Day, 1.5 p.m.) NEW YORK. October 24. In the Chicago wheat market sharp rallies near the clase pulled prices from the slump to a point neaiei yesterday's closing quotations. The £xsaw its first million share day ffi record sale of 1,220,000 shares. Wheat closing quotations were: December 120 i cents a bushek March 1281, May 131 J.— Australian Press Association.

MARKET VALUES SWEPT AWAY. CHICAGO WHEAT ALSO HIT. (Receive This Day, 11.50 a.m.) VANCOUVER. October 24. Over £1,000,000,000 in market values, were swept away in the neatest day in the history of the markets Then some of the most powerful, bankers gave support which stopped Ue Break Over 11,500,000 shares were exchanged shortly after 2 o'clock, the being nearly three hours behind actuaJ The San Francisco and Philadelphia markets also plunged down in sympathy The Chicago grain market wa? also badly, bit. but was rising sharnl> at the close, when wheat pricey came back to within five cents of yesterday s close, after dropping *l2. cents in one of the wildest sessions in the year. Atone period December wheat had dropped 11 points, ilarc h 12. and May 12 "in the meantime, in the Omaha wheat pit net one sale was recorded, conditions in Chicago and dsewhere being too unstable for either a "bull or "bear" to take a chance.—Australian Press Association.

EFFECT IN CANADA. HEAVY LOSSES IN VALUES. (Received This Day, 11.20 a.m.) VANCOUVER, October 24. A Montreal message says that in sympathy with New York stocks in leading issues lost as much as £8 today in a renewal of the reaction of the a '\t Toronto millions of dollars in values were wiped out when a wide range of issues fell by from two to ten pounds.—Australian Press Association, United Service.