WALL STREET

Evening Star, Issue 20320, 31 October 1929, Page 11

WALL STREET

BANKERS’ DECISION 25 PER GENT. MARGIN Press Association—By Telegraph—Copyright. NEW YORK, October SO. Some of the greatest hanking houses —namely, the Morgan Company, the National City Bank, the First National Bank, the Bankers’ Trust Company, the Irving Trust, and the Bank of America—have announced that for the present they require tho maintenr nee of only a 25 per cent, margin on Wall street demand loans. Heretofore the margin has been as high as 50 per cent. POSITION IN CANADA. OTTAWA, October 29. There is nothing in the general situation in Canada to warrant a panic in the stock market. According to Government officials, the' conditions are thoroughly sound and business is exceptionally good, and even if it reverts only to normal everything will be satisfactory. conditions were never on a firmer basis, and what is happening now is only a phase which is restricting itself to the area of stock speculation on a margin. With so many people in the market they ran up stocks to levels out of line with the interest return, and when the structure became top heavy it was bound to come down sooner or later. The intrinsic value of Canadian stocks today is just as high as it was a week or a fortnight ago, and the whole future of Canada is ahead of these corporations, the same as it always was. The trouble has been caused by unwarranted and exceptional participation in the market by weak holders, who operated on a margin in hopes of making easy money. The real conditions do not warrant a panic at all. PRICES RECOVER. NEW YORK, October 30. (Received October 31, at 10.35 a.m.) A brisk rally of good buying shot prices upward from five to thirty dollars a share early to-day, with strength maintained early in the afternoon. The Governors of the Stock Exchange voted for a delay ■in opening tho market on Thursday until noon, and to close on Friday and Saturday. MR ROCKFELLER OPERATES. NEW YORK, October 30. (Received October 31, at 11.45 a.m.) During the afternoon it was announced that the exchange would be closed until noon on Thursday and also closed all Friday and Saturday to enable the brokerage houses to catch up on the tremendous amount of sales. This example was followed by various other exchanges throughout the country, including produce and curb. There was some slight profit taking following the announcement, but dealings soon picked up again in momentum, and the machines ran nearly two hours’ behind quotations. The additional bullish feature of the day was a statement issued by Mr Rockfeller, senior, that business conditions were sound, that stocks were too low, and that" ho and his son wero buying sound common stocks for investment. At Chicago recoveries in the stock market brought a strong tone to wheat trading, the closing prices showing sharp gains for the .session. Eastern interests were credited with much, of the buying but large sales of flour and evidences of a better export demand were aids to the advance. Wheat closing quotations were; December, 1285 cents per bushel; March, 135],: May, 139 J. (Received October 31, at 1 p.m.)

The governors announced that “ close down ” was due to the physical exhaustion of the employees, who had, not slept in some instances for seventytwo hours. At the close of tho exchange the early gains were held by powerful financial forces, throwing in huge supporting orders. The sales approximated 11,000,000. The curb market recorded gains in active issues of from two to forty dollars, A POWERFUL RECOVERY. NEW YORK, October 80. (Received October 31, at 11.45 a.m.) The stock _ market made a powerful recovery, jumping from one to thirty points with the total sales approaching 11,000,000 shares Tension was relieved when it was, seen that the tremendous weight of the bear market was finally broken Excited buying of bargains left from yesterday’s terrific break replaced the dejected selling and all stocks which had felt the brunt of the disastrous selling wave were bought in the brokerage houses, being crowded with persons eager to halt selling out their accounts. The banks continued to support the market with moral force. The Morgan group again conferred, after which they issued the following statement:—. “There does not appear much to say, except what is manifest to everyone, and that is that conditions are distinctly 1 jet ter.” THE DAY’S SALES. , NEW YORK, October 30. (Received October 31, at 1.25 p.m.) The stock sales to-day wore the third largest on record, being 10,727,320. The curb sales were 3,809,200.