SECOND CRASH.

Auckland Star, Volume LX, Issue 256, 29 October 1929, Page 7

SECOND CRASH.

NEW YORK 'CHANGE

Billions Of Dollars In Values

Go Overboard.

FRENZIED TRADING,

(Edited P.A.—Electric Telegraph-Copyright)

(Received 10.30 a.m.) NEW YORK, October 2S. Billions of dollars in values -went 'overboard as the stock market again plunged downward, headed by an earlier leader in United States' Steel.

The backing support which came'in to protect the market last week was tmable to prevent to-day's disastrous break, which was accompanied by frenzied trading. There were declines all alons the line and the mainstays of the market, namely stocks in which the ■wealthier class had been trading, were smashed downward in record breaks. Ten, fifteen and twenty point reductions were recorded in a brief period.

The bic banking pool held a further meeting shortly after one o'clock, after which it issued buying orders, and the appearance of Mr. J. P. Whitney, of the Morgan House, and others on the floor purchasing stocks temporarily restored confidence.

A slight rally ensued, but by two o'clock even the bankers appeared unable to stem the tide and the '"bears" sent the market crashing again in a new selling wave.

The break began mildly, but gathered momentum with sweeping vigour. Stock after stock broke through the resistance levels and the leaders sank -under the low levels reached last Thursday.

Besides United States Steel, General Electric bore the brunt of the selling, while Westlinghouse, General Motors and Johns and Manville also suffered. It was the last straw for many who had been holding on patiently awaiting action from the huge banking pool formed last week. They threw their holdings down for what they would bring. ' EFFECT ON WHEAT. AID TO FARMERS PROPOSED. (Received 11.30 a.m.) WASHINGTON, October 28. The Federal Farm Board in a statement on Monday said that the shrinkage in stock values had had an unwarranted effect upon wheat prices. The board proposed a series of loans to aid farmers to hold their crops.