STIR IN CANADA

Evening Post, Volume CIX, Issue 28, 3 February 1930, Page 9

STIR IN CANADA

STOCK MARKET PANIC

ARRESTED MEN SET FFIEE

GOVERNMENT ALARMED.

United Press Association— Ity Eleatrle, TclgeraDh— Copyright. (Received 3rd February, 1 p.m.) "VANCOUVER, Ist February. Canada this week watched an amazing financial drama in which ti'ureatened wreck loomed so widespread that the highest law officers of the-Dominion wero obliged to como to the rescuy of the highly-placed people they had just attacked. In one forenoon five leading brokerage houses were raided and eleven of the principals arrested. Colonel William Price, Attorney-Gen-eral of Ontario, directed the battle against alleged dishonest bucketing brokers who have scores of branches throughout the country. . Ho closed up and asked the Stock Exchange to expel mining operators, who last year alone handle* more than £40,000,000 of the public's money. For one day tho stock exchanges operated without these brokers. Overnight, however, the Ontario- Government feared a financial crash that would rock the .Dominion, and early on Saturday it was announced that the accused brokers would be readmitted to the exchange. The Attor-ney-General was forced to* capitulate to a definite threat that with tl»o accused traders prohibited from trading there would .bo a panic and tho unprotected stocks of thousands of small holders would be wiped out, and in the case of Criminal' Court charges against the brokers finally not being proven, these speculators, large and small, would have good cause for legal redress against the Government of Ontario.

.Curiously enough, the Government of Manitoba also found itself-in a desperate position, and, protested violently against 's action in seizing the offices, and bank accounts of the accused brokers. Manitoba's prosperity is entirely dependent upon a' stabilised -wheat price. Two of the leading brokers were carrying millions of bushels of wheat on margin in the Winnipeg market, and.their bank accouut seizures occurred oik the day when wheat reached the lowest point of the season. Noon on ■ Friday saw a situation irlioxo ten million bushels of wheat ■ would have been dumped on the market within an hour. , The Premier of Manitoba'announced that the resources of the ontiro Government would be flung into the market to stabiliso the- situation, for ho feared a panic that, would have carried the price away under three shillings. On Saturday morning the Ontario police released enough brokers' money to bolster the wheat market,' and the crisis passed with Liverpool cables announcing two cents advance overnight. The week finished with Government leaders come; to the realisation that some business is sometimes 'too big to be disciplined without far-reaching and unexpected results.'" .- -.- ..