Wall Street Reaction

Manawatu Times, Volume 62, Issue 258, 30 October 1937, Page 2

Wall Street Reaction

EFFECT OF NEW REGULATIONS United Press Association—By Electrlo Telegraph.—Copyright NEW YORK, October 28. In response to 1 the Federal Reserve Board's action .|_>t night, stocks soared immediately when the market opened and prices advanced by one to eight points, with a turnover of 1,050,000 shares in the first hour, after which they lagged, prices receding, but restrengthening in the final hour. The new regulations are generally acclaimed and it is expected that the reduction of margin requirements will release about 1000,000,000 dollars for new purchases, also bolstering up present stock commitments. ACTIVATING PRIVATE CAPITAL Received Friday, 10 p.m. NEW YORK, October 29. The New York Times' Washington correspondent predicted that the Administration is planning further steps to activate privato capital, including, first, revision of the high tax on undistributed profits of corporations; second, modifications of the capital gains levy; third, a changed industrial policy designed to hold down production costs and also prevent runaway prices.