SHARP REACTION

Hawke's Bay Tribune, Volume XXII, Issue 252, 7 October 1932, Page 6

SHARP REACTION

MR. HOOVER’S SPEECH

EFFECT ON MARKETS.

SELLING WAVE ON wXLL STREET

New York, Oct. 5. Perhaps not since the war has there been such a sharp reaction to the presidential address as to Mr Hoover’s speech of yesterday. The revelations of the nearness or the United States to the brink of financial disaster have had a stringent effect on all markets. Despite other important news of a most favourable kind, a heavy selling wave in Wall Street caused stocks to drop two to eight points, the slump being the sharpest in the year, selling pressure driving the total transactions to 3.000,000 shares. Bonds followed suit and the losses were widespread. Wheat, cotton and other leading com modifies were sold off and showed wide losses.

Wall Street said: “It was a good speech, but awfully bad for business.’’ Politically, moreover, there has been an immediate backfire. Mr Garner is issuing a long rebuttal to-night on the agricultural policy, charging the President with “lack of administrative ability and leadership and blind adherence to obsolete policies.” Leading Democrat senators at Washington to-night also issued counter statements, and it is expected that Mr Roosevelt will make a reply. Mr Hoover to-day charged the Democrats with spreading falsehoods about the Administration. Mr Hoover’s mention of war debts yesterday is considered to be a feeler, and press reports indicate that European diplomats at Washington have seized upon the President’s proposals with enthusiasm. Further developments are expected.