AMERICANS EXCITED.

Auckland Star, Volume LXII, Issue 163, 13 July 1931, Page 5

AMERICANS EXCITED.

PRESIDENT HOOVER'S OFFER.

WAVE OF OPTIMISM

STOCK EXCHANGES ELECTRIFIED

(From Our Own Correspondent.)

SAN FRANCISCO, June 21

Scenes almost unparalleled in the hectic history of Wall Street were witnessed after the announcement of President Hoover that the United States had offered a proposal for war debt and reparations payment moratorium.

The stock market, at the first hint that Mr. Hoover proposed to extend help at home and abroad, seized the opportunity, and gradually the prices soared until the "bears" were demoralised after enjoying a session for several months. On the Monday there was a tremendous accumulation of orders to 'buy stojk, and the security and commodity markets made further response to Mr. Hoover's scheme of rehabilitating Europe, and incidentally relieving the pressure in the United States by bolstering Germany. A million shares were sold in the first half hour.

In all the big cities of the United States the scenes in New York were duplicated on a smaller scale. In San Francisco the scores of brokerage houses were packed to overflowing with excited speculators desiring to participate in the harvest of improved prices. Many traders almost fought for stocks and bonds. Women were busy purchasing securities, and it was not unusual to witness aged ladies dabbling in the dangerous game of selecting winners among the hundreds of stocks listed in New York. It was an advancing market, and they believed they were certain to get a profit. It was not until the third clay of the fooom that prices began to slacken. Psychological Effect. The excitement on the stock markets had a great psychological effect on the whole of the American nation, and smiling faces were noticeable everywhere, optimism reigning supreme among the general public. In this many of the leading politicians joined in enthusiastically endorsing President Hoover, but there were those political figures who looked otherwise on the scheme of the White House. Conditions in the United States were equally as bad as in Germany, it was urged, and charity began at home. A number of Congressmen were not backward in making themselves heard on this point. Senator Borah, of Idaho, chairman of the Senate Foreign Relations Committee, said that unless armaments in Europe were drastically reduced and reparations readjusted, a moratorium "would simply postpone the day of disaster." i Senator Borah's statement follows: "It j has been clear to me from the beginning that Germany could not pay the reparations assessed against her. They will have to be readjusted. If a moratorium is granted it will give time to see the situation as it is and time to adjust matters. I feel that the moratorium ought to be limited to one year. If within that time armaments are drastically reduced' and reparations readjusted, recovery might well follow. But without disarmament and without read- ] justment of reparations, moratoriums simply postpone the day of disaster." Opinions in the Street. Curious and almost ludicrous views prevailed among men in the street in some of the Western cities. For example, knots of men discussing the new phase of international politics professed to see a new war in the offing in a year or so, with the United States backing Germany and Britain. On the other side of the picture these wiseacres had Russia and Italy in a warlike combination, as the other Powers were said to be opposed to Soviet dealings. Many believed that the conditions in Germany had been exaggerated and that inside a year Germany would be found armed to the teeth and surpassing France in that respect. Others declared that Uncle Sam was compelled to come to European help owing to enormous investments, in an effort to coax Germany to rebuild her industries and so be in a position to pay all her debts. It was realised that Britain was in a peculiarly awkward place in regard to international debts, as she would stand to lose very materially under the moratorium arrangement 'proposed by Mr. Hoover. One phase of the Washington excitement was patent to all the American nation, and that was that considerable window dressing was in progress for the 1032 Presidential boom, the present moratorium move bringing Herbert Hoover into the limelight with one of the greatest moves on the part of America since Uncle Sam entered the World War. Many disinterested observers are of the belief that Mr. Hoover is certain to be re-elected, and that the present attempt to clarify or solve the international uncertainty will be the deciding factor in his favour, for it is recognised that the Democrats have no candidate of the calibre of Mr. Hoover.