AMERICANS EXCITED

Hokitika Guardian, 18 July 1931, Page 3

AMERICANS EXCITED

PRESIDENT HOOVER’S OFFER

WAVE OF OPTIMISM,

SAN FRANCISCO, June 24

Scenes almost unparalleled in the hectic history of Wall Street were witnessed after the announcement of President Hoover that the - United State* had. offered a proposal, for war debt and reparations payment;-moratorium. The stock market, at /the' first hint that Hoover proposed to extend help at hopie and abroad, seized the opportunity, and gradually the prices soared until the “bears” were demoralised after enjoying a session for several months. On the Monday there was' a tremendous , accumulation of orders to buy stock and the security and commodity markets made further response to Mr, Hoover’s scheme of re kahilitating Europe, and incidentally relieving the pressure in the United States by bolstering Germany. A million shares were sold in the first half hour.

In all the big cities of. the United States the scenes in. New .[fork were duplicated on a smaller scale. In San Francisco the scores of brokerage houses were packed to- overflowing with excited speculators desiring to participate in the harvest of improved prices. Many traders almost fought for stocks and bonds. Women were busy purchasing securities, and it was not unusual to witness aged ladies dabbling in the dangerous game of selecting winners' among the hundreds of stocks listed in New York. It was 'an advancing market, and they believed they were oertaiti to'get a profit. It was not until the third day of the boom that prices began‘to slacken. PSYCHOLOGICAL EFFECT. The excitement on the stock markets had a. great psychological effect on the whole of the American nation, and smiling faces were noticeable everywhere, optimism reigning supreme among the general public. In this many of the leading politicians joined in enthusiastically endorsing President (HooVerj ; but -there were those political figuresv .whp''; looked otherwise on the ’the White House. O’Jndi/tjipns; in -thei United States were equally agbad; as in Germany, it was urged, began at home. A nmn-' fief of [Congressmen were not backward jif making themselves heard on this point;-!'}! /'

'“ Senator Borali, of Idaho, chairman of the Senate; Foreign Relations Committee, said that unless armaments in Europe were drastically-reduced and reparations readjusted, a moratorium “would simply postpone the day of disaster.” Senator Borah’s statement follows: “It has been clear to me frorp the- beginning that Germany could not gay the reparations assessed against her. They will have to be read fated If a moratorium is ’granted it will give time to see the situation as it is and time to adjust matters. I feel that the moratorium ought to he limited to one year. If withj n\, tji at, time armaments are drastically reduced and reparations readjusted recovery might well follow. But without disarmament and without readjustment of reparations, . moratorium's simply postpone the day of disaster.” ; ~

OPINIONS IN THE STREET.

Curious and almost ludicrous views prevailed among men in the street in some of the Western cities. For example, knots of men discussing the new phase of international politics professed to see a new war in the offing in a year or so,, with the United States badjing Germany and Britain. On the other side,of the picture these wiseacres had Russia and Italy -in a warlike combination, as the other Powers were said to be opposed to Soviet deal ings. Many believed that the coit ditions in Germany, had been exagger ated and that inside a. year Germany would be found armed to the teeth an dirpassirg France in that, respect. Others declared that Uncle Sam was compelled to come to European help owing to enormous investments, in an effort to coax Germany to rebuild her industries and so be in. a position to pay all her ''debts.A-Tt ; was .‘realised tint Britain was inAa peculinrlv awkward place in regard to irtprintional debts, as she would stand .td lose very materially under the moratorium arrangement proposed by Mr Hoover. One phase of. .the Washington excitement was patent to all the American nation, and that was that considerable window dressing was in progress for the 1932 boom, the presort moratorium move -bringing Herbert Hoover into the. limelight, with one of the greatest moves on the part of America since Uncle Sam entered the World Wan:, Many disinterested observers are of the belief that Mr Hoover is certain to be re-elected, and that the present attempt to clarify or solve, the international uncertainty will be the deciding factor in his favour, for it is recognised that the Democrats. :havesw*. no candidate of the calibre of Mr 'Hoover.