POTENTIAL DANGER

Dominion, Volume 30, Issue 45, 17 November 1936, Page 9

POTENTIAL DANGER

Foreign Speculation in U.S. Stocks LEGISLATION POSSIBLE (British Official Wireless.) Rugby, November 15. Mucli interest has been aroused in London by President Roesevelt’s announcement that the Federal Reserve Board and the United States Treasury would study, and, if possible, draft necessary legislation to deal with the potential" danger represented by huge holdings by foreign investors and speculators in American stocks. It has been suggested that difficulties might become acute if foreign holders decided to dump their securities on the market. Mr. Roosevelt is reported to have remarked that in the past foreign currencies and gold reserves had at times been seriously affected by concerted attacks by private syndicates, instancing attacks on the currencies of France, Belgium, and Holland in recent years, and even on the pound. The gentlemen’s agreement between the United States, Britain, and France on conditional stabilisation, he said, would make a direct attack on currencies difficult, but the element of danger to the stock market persisted. The President’s announcement has caused surprise in London, and further developments are awaited with interest.