WALL STREET.

Press, Volume LXI, Issue 18343, 28 March 1925, Page 13

WALL STREET.

REACTION AFTER BOOM.

HEAVY WAVE OF'SELLING.

(BT CABT.B—rSESS ASSOCIATION'—eOrTEIGTTT.) (ACSTBALUN AKD S.Z. CABLE ASSOCIATION.) (Eeccivcd March 27th, 5.40 p.m.) NEW YORK, March 26. After the record prices reached on tho Stock Exchange on November Bth, 12th, and 20th, hundreds of millions of dollars being added to the market value of many kinds of securities, the pressure began to be felt, which was due not only to the inevitable reaction but to other external cause?, such as the recent political disturbances at Washington. Such pressure continued until the breach came this week which affected every variety of stock, including* even the soundest as well as those which made gams on inflated values. The lapse continued for two days, the second day having very seriious effects on all railway issues. This was partly due to the appointment of receivers for the Saint Paul Paihvay, which long has been in a bad condition, and iu which it is estimated the stockholders have lost five hundred million dollars, causing considerable criticism of the Federal Government for not stepping in to save a collapse. The market continued another day in a weak condition, and to-day is further depressed, due to rumours that tbe Federal Reserve Bank intended to increase the re-discount rate, which, however, remained unchanged. ' Nevertheless, another heavy wave of selling set in, forcing several issues into a new low level. Thus, while the bottom has not fallen out of the market, it is at its lowest ebb for six months.