NEW YORK FINANCE

Hawke's Bay Tribune, Volume XX, Issue 148, 12 June 1930, Page 5

NEW YORK FINANCE

SEVERE BREAK IN MARKET CRISIS IN FLORIDA. FIVE BANKS FAIL, IBrltlih Official Wlrelaaa.} (Received 12, 12.80 p.m.) New York, June 11. A severe break, partly attributed to yesterday's decline in London, resulted in a rush of selling, over four billion dollars’ worth of stocks being transferred on the New York market. Drops in prices continued until immediately before the close, when slight recoveries appeared, although the increases were unimportant. The market broke on Monday, recovered on Tuesday, but dropped in all issues to-day. Industrials sold off sharply, steel reaching the new low level of 160. Losses ranged up to 20 points. Little support was demonstrated and demand was particularly small. It indicated that the tariff situation is not helpful. A report from Miami. Florida, states that five banks, with resources amounting to more than 20,000,000 dollars, closed their doors to-day. The institutions were affiliated and their difficulties are attributed to substantial withdrawals.” It is believed, however, that it is the aftermath of a deflation period following the Florida boom.

SOUTH AFRICA’S POSITION

DEARTH OF CREDIT.

[United Press Association—By CableCopyright.) (Received 12, 9.30 a.m.) Capetown, June 11.

The governor of the Reserve Bank, in his annual report, said that the reason for comparatively dear money was the dearth of credit. South Africa was borrowing too much from the banks and spent it on imports when the values of her primary products had received a setback. South Africa was better fitted at present to stand a shock than any other country owing to her gold production.