BOOM IN STOCKS.

Hawera Star, Volume XLV, 19 October 1925, Page 5

BOOM IN STOCKS.

WALL ST. ACTIVITY

SPECULATION ON RUMOURS.

BY CABLE—PRESS ASSOCIATION—COPYRHIGT. NEW YORK, Oct. 16. Amidst the wildest scenes witnessed for many months Wall Street to-day set new records in trading, 1,222,000 shares being traded before noon. / The first four saw 636,000 shares change hano*-Twenty-six- issues reached new high levels for 1925.

At the close of the market the day's transactions totalled 2,823,400 shares, an increase of nearly 200,000 shares over yesterday’s sudden spurt to 2,664,300. Trading was stimulated by a reduction in the rate on call money from 5J to 41 per cent. "The boom is attributed'to speculators ’ dealings and rumours' of big develop ments in the business world. Conservative quarters, however, merely credit the boom to the general prosperity of several companies, such as/ the United States Steel Corporation’s announcement that its plants are operating to more than 80 per cent, of their capacity, and the Standard Oil Company’s announcement that it will increase its capital stock, permitting shareholders to participate. Trading on the stock market reached on Saturday the largest volume in the history of the market. During the two hours’ session 1,615,700 shares' were sold, a tumultuous market executing orders from all parts of the country, These converged almost entirely upon motors, in which there was hectic speculating. The first hour rushed up prices. ‘ln the second hour an avalanche of selling to take profits swept over the market and prices tumbled almost as rapidly as they had advanced. The ticker machines reporting the quotations were half an hour behind the actual transactions.

Weekly reviews state that general business conditions have enhanced the prevailing optimism, declaring that the season’s trade gains in most eases fulfilled and in some cases passed expectations.