THE MONEY MARKET.

Auckland Star, Volume LVII, Issue 247, 18 October 1926, Page 4

THE MONEY MARKET.

OVER-SPECULATION IN SHARES BRINGS SHARP DECLINE IN U.S.A. NEW YORK, October 16. The New York stock market to-day experienced a drastic decline In the prices of numerous leading issues. Many traders hastened to dispose or long holdings. Others who could not find an additional margin had their accounts liquidated. General Motors, United States Steel and Allied Chemical stocks were principally affected. They touched new low levels. The break in cotton prices is thought by mercantile reviews to indicate a further drop. Wall Street was outwardly unperturbed by the declines in prices, brokers characterising the condition as a necessary readjustment or an over-bought market However, the general opinion is that 1926 business has reached its peak, and that speculators are awaiting the future with fear. The markets have suffered no such decline since last March. One important house ventures the opinion that the longfeared " bear " market is beginning. HOW GERMANS PAY. THE OLD MARK. Arrangements have been made, says the " Daily Mail," by which British holders or mark loans or German States, municipalities, communal associations, etc., may lodge their claims and securities at the Bank of England for conversion or the securities into new " loan liquidation debt." At present only " old holdings," that is those acquired before July 1, 1920, are being received for conversion. A summary of the conversion terms Is given in the official notice, and Is on the lines or the conversion offer for German Imperial Government mark loans published on October 30 last. Only 25 new marks nominal of the new loan is offered for every 1000 marks nominal of the present bonds. In other words, the nominal value will be cut down to one-Tortleth of its present amount. Moreover, even this trilling proportion is or problematical value, depending on certain " redemption rights." it bears no interest. The latest date for the receipt of claims at the Bank or England is November 1.