FRENZIED TRADING

Evening Star, Issue 20315, 25 October 1929, Page 9

FRENZIED TRADING

NEW YORK STOCK EXCHANGE AN AVALANCHE OF LOSSES Press Association —By Telegraph- Copyright. NEW YORK, October 23. Bears commenced a new attack on the Stock Exchange, and prices dropped throughout tho hat from 10 to 100 points. The tickers ran two hours overtime, finally showing that the reaction had been terrific, probably the worst in tbe history of the Exchange. Tho total losses for the day will reach over 2,000,000,000d01. The sales totalled 6,400,000 shares. At the opening tho dealings were tame, then tho bears took control, and small holders frantically dumped holdings overboard in immense volume. Tim Exchange suddenly became a scene of frenzied traders, large and small, running from an avalanche of losses. The momentum steadily increased, and millions of dollars were wiped out. Bethlehem, United States Steel, Wcstinghouse, and other aristocrats of the recent bull drive led tho decrease. Towards tho close losses amounting to many thousands of dollars were incurred, wive troubo delaying the orders as a snowstorm struck tho Western States. Similar scenes aro expected to-mor-row unless immediate aid is forthcoming. Very slight support appeared near the close, but it was then useless. Berio is losses wore also suffeied on tho curb, where cotton, all grains, rubber, sugar, and coffee lost from 2 to 10 points. Sterling has reached 4.87 15-16, the highest "for the year.—Australian Press Association. DECLINE CONTINUES WORST BREAK IN HISTORY. NEW YORK, October 24. (Received October 25, at 9.35 a.m.) Continuing its spectacular decline, the stock market experienced what may bo the worst break in its history. Four thousand million dollars worth of paper profits were wiped out in Jess than three hours’ trading, which is twice tho amount in the same period yesterday. The tickers were eighty minutes behind the sales at 1 o’clock, and scenes of tho utmost confusion reignetl on the floor of the Exchange, with the brokers frantic. Wave after wave of selling mowed down prices until all the lenders crashed through the resistance barriers. Traders in tho meantime surged about the brokers’ offices watching their holdings being wiped out, such scenes ensuing thereby as rarely, if ever before, were witnessed. Tho situation took such a serious aspect that the bankers held meetings to determine some way of stemming the flood of offerings It is understood that the Board of Governors held a meeting to discuss the advisability of temporarily closing the Exchange, but it was decided to keep open as usual, and the governors themselves took the floor of the Exchange and began buying. This inspired some confidence, and appeared likely to turn the tide. Meantime, rumours throughout the financial district that the Exchange was actually closed nearly caused a panic in some quarters, especially in conjunction with similar reports regarding Chicago and Baltimore, but these wore quickly denied from all the three centres. Nevertheless, the chairman of tho Baltimore Exchange admitted that his board had considered tho possibility of temporarily closing because it had heard a report that the New York Exchange was discussing a similar step, and Baltimore would likely follow suit.—Australian Press Association.

CANADIAN REACTIONS. VANCOUVER, October 24. (Received October 25, at 11 a.m.) A Montreal message says that in .sympathy with New York stocks leading issues lost as much as forty dollars to-day in a a renewal of the reaction of the past ten days. At Toronto millions of dollars in values wore wiped out when a wide rang© of issues fell from £2 to £lO to-day.—Australian Press Association. £ - TERRIFYING PANIC.' 5 MAD RUSH TO SELL. NEW YORK, October 21 (Received October 25, at 12.10 p.m ) The most terrifying selling panic since the war days in 1914 dealt a crushing blow to the leading slock markets in the United States to-day, and it was only checked by prompt reassurances from the country’s leading bankers. All records in frenzied trading were broken in New York with the day’s sales of approximately 14,000,000 shares, with billions of dollars of quoted values eliminated. Shares were clumped overboard for whatever tney would bring. There was a substantial upward movement lato in the afternoon, but tho closing quotations in mn*t of tro leading issues disclosed severe declines. The reason for the wild rush to unload is not ascertainable.—Australian Press Association. VANCOUVER, October 24. (Received October 25, at 12,10 p.m.) Over five thousand million dollars in the market values were swept away m the greatest day in the New ) ork market’s history. Then some of the most powerful bankers gave support which stopped tho break Over 11,500,000 shares were exchanged shortly after 2 o’clock, the tickets then being nearly three hours, behind tho The San Francisco and Philadelphia

markets also plunged clown in sympathy. The Chicago grain market was also badly hit, hut it was rising sharply at the close, when wheat prices came back to with five cents of yesterday’s close, after dropping twelve cents in one of the wildest sessions in the year. At ono period December wheat dropped eleven points, March twelve, and May twelve. Meantime, in the Omaha wheat pit not one sale was recorded, the conditions in Chicago and elsewhere being too unstable for either bull or bear to take charge.— Australian Press Association.