Wall Street Markets Soar

Manawatu Times, Volume 62, Issue 259, 1 November 1937, Page 6

Wall Street Markets Soar

RESERVE BANK RESTORES CONFIDENCE United Press Association—-By Electric Telegraph.—Copy rlehL NEW YORK, Oct. 28. In response to the Federal Reserve Board’s action last night—apparently prompted by the recent instability of tho stock market, the Federal Reserve Board reduced the margin of its requirements for purchases from 55 to 40 per cent., and imposed a margin of 50 per cent, on short sales—stocks soared immediately the market opened to-dpy. Trices advanced from one to eight points, with a turnover of 1,505,000 shares in the first hour, but thereafter they lagged and receded. But in tbe final hour prices again strengthened. The new regulations generally ore acclaimed. It is expected that the reduction in the margin of requirements will release about 100,000,000 dollars for new purchases, and also bolster the present stock commitments.

WILL THERE BE FURTHER DEVALUATION? PRESIDENT REFUSES TO REDUCE TAXES Received Sunday, 7.3 pp.m. NEW 'YORK, Oct. S'J. A Hyde Park messasge states that President Roosevelt indirectly denied reports that the administration is contemplating a downward revision of the profits and capital levy tax. in a statement to the press he said tax revision was impossible when one-third of the country’s population was "illclothed,” under-nourished and badly housed. lie insisted that the Govern ment’s prime social and economic objective was to increase the purchasing power of those in need. It is stated that officials, including Mr. Douglas, have begun a series of informal conferences with a gr-.'up of leading stockbrokers in Was-hi. it ifc believed in an effort to secure Wall Street support for the G jv«.uini«nl a plans to prevent further declines. Mr. Gay, president of the .Vow York Stock Exchange, in a statomeat, said taxes and regulations impaired the | efficiency of the securities market and, accordingly, restricted the flow of new capital to business and industry. ilo issuod a warning that private capital must have an opportunity to supplement Government spending if the country was to continue towards recovery. The New York Times’ financial editor states that banking circles are interested in European rumours that further devaluation of the dollar is impending, and believed such have arisen from conjectures regarding the method* Mr. Roosevelt will adopt to combat business and stock slumps. The prevailing view is that the President is rather disillusioned about th» efficacy of further devaluation, and while he may be receiving such counsel from some quarters, it is very unlikely it can be adopted.