AMERICAN MARKETS.

Manawatu Standard, Volume XLV, Issue 101, 30 March 1925, Page 6

AMERICAN MARKETS.

DECLINE IN VALUES OF STOCK,

NEW YORK, .March 26,

After the inurket hid reuched a great height, especially on November 8, 12 and 20, pressure began to be felt, which wus due not only to the inevitable reaction, but other external causes, such as the recent political disturbances at Washington. Such pressure continued until the break came this week, which affected every variety of stock, inUuding even the soundest, as well as those which had made gains on inflated values. The lapse continued for two days, the second day having very serious effects on all railway issues. This was partly due to the appointment of receivers for the Saint Paul railway, which has for long been in a bad condition and in which, it is estimated, stock holders lost five hundred million dollars, causing considerable criticism of the Federal Government for not stepping in to save the collapse. The market continued for another day in a weak condition and to-day is further depressed, due to rumours that the Federal Reserve Bank intended to increase its re-discount rate, which however, remained unchanged. Nevertheless, another heavy wave of selling began, forcing several issues into a new low level. Thus, while the bottom has not fallen out of the market it is at its lowest ebb for six months.—A. and N.Z. cable.