WALL STREET

Evening Star, Issue 20317, 28 October 1929, Page 9

WALL STREET

AN EASIER TONE BIG BANKS BEHIND THE SCENES Press Association—By Telegraph—Copyright. NEW YORK, October 25. Millions of dollars from tiio' great banks went to tho support of the stock market to-day, and brought about a considei'ably easier tone. At the close there were some gains, a few losses, and a little irregularity, hut in all the position was much easier than it was at the opening. Trading was active. At the close the tickers were G 9 minutes behind. The proceeding opened in the rampant buying fashion on tho basis of 12,000,000 shares per day. Prices gained support, but then a recession commenced, and many of the leaders suffered. Then came the announcement that the great hanks had formed an organisation to prevent reckless losses in good securities. The nervousness, ended therewith, and a bettor tone developed afterwards. The “bulls” bought moderately, and the “ bears,” who wore frightened, ccfiscd their activities. Tho stock sales totalled 5,923,200 ( shares. Railroad stocks closed strong. * Call money is plentiful at 6 per cent. The curb followed the stock market with similar results, and a reaction on the market at Boston, Philadelphia, and San Francisco also showed similar results.

A FURTHER DECLINE. NEW YORK, October 26. Soiling on the Stock Exchange forced prices down again, but the market as a whole moved only narrowly. The dealings were on a modest scale as compared with those of tho last two days. Prices generally declined from four to eight points. The selling is being ascribed to the further liquidation of poorly margined accounts, although tho belief is expressed that it resulted from tho unloading of support stocks bought by bankers in the recent break. COUNTRY’S ECONOMIC POSITION. REASSURING STATEMENTS. WASHINGTON, October 26. In a statement bearing out the earlier declarations of the Treasury officials and industrial leaders that business declines were in no way responsible for Thursday’s stock break, President Hoover assorted that the fundamental business of the country was on a sound and profitable basis. Simultaneously tho Federal Reserve Board issued a detailed analysis of the business conditions, pointing out that industrial production is far above last year’s level. However, neither the analysis nor President Hoover’s statement referred directly to the market break. President Hoover referred to declines in other industries as movements of a secondary character when considered in the whole situation. The best evidence is that, although production and consumption arc at high levels, the average prices of commodities have not increased, and there has been no appreciable increase in the stock of manufactured goods. Moreover, there has been a tendency for wages to increase, and tho output of tho workers in many industries shows an increase which indicates a healthy condition. A temporary drop in grain prices sympathetically with Stock Exchange prices usually happens, but, m tho Department of Agriculture points out, tho over-riding fact in 'grain is that this year the world’s wheat harvest is estimated to be 500,000,000 bushels below that of last year, which will result in a very low carry-over at the end of the harvest year.

President Hoover lidded that the construction and building industries had been to some extent affected by the high interest rates induced by eculation.

LONDON STOCK EXCHANGE. LONDON, October 25. The Stock Exchange, alter lastnight’s panics and scenes, opened calmer. The leading English and American stocks opened from two to three points better. Tho actual trading was small. LOSS OF £2,000,000,000. VANCOUVER, October 27. (Received October 28, at 10.25 a.m.) Leading Wall street brokers believe that it will be six months or a year before buying confidence is re-estab-lished throughout tho country following tho terrific reverberations on Thursday’s £2,000,000,000 loss.