SPECULATION FEVER

Northern Advocate, 22 July 1933, Page 9

SPECULATION FEVER

SHARP REVERSES UNITED STATES MARKETS COMMODITIES AND SECURITIES. APPROACHING A DEBACLE. .United Press Association —By Electrio Telegraph.—Copyright.) (Received 9 a.in.) ' WASHINGTON, July 20. Government officials are watching with considerable apprehension the developments in the commodity and securities markets of the United States. Both markets suffered sharp reverses today. This state of affairs is attributed partly to the “top heavy” speculative situation, and partly to the somewhat irregular development of the industrial programme and the position of the dollar in international exchange.

It Is feared that the speculative fever might result in a debacle similar to the crash of October, 1929. A message from New York says the speculative financial pyramid again tumbled in spectacular fashion late today, commodities .and stocks both suffering price losses comparable only to the collapse of 1929. Stocks lost from 2 to 18 points on a turnover of 8,881,000 shares—the largest volume since May 5, 1930. Fifty of the principal stocks declined ,6.49 points, compared with the largest single day's decline of 11.5, points.

The decline in commodities was even more striking. Wheat .lost lip to 15$ cents, maize 323, oats 10, rye 264, and cotton 4 ; dollars a bale. Dollar An Exception. The exception in the decline was the dollar, which recovered IS cents, to 4.(14 dollars, against sterling. This was duo to the announcement of the plan of Britain to convert her 15$ per cent dollar loan, 1027, into sterling obligations at a rate of £2(10 for each 3000-dollar bond. President Roosevelt, however, contemplates no action regarding the Slock Exchange, A New York message states that after the worst break since 1020 stocks rallied today, substantially reducing extreme losses of 2 to more than 17 dollars for leading issues.

* GRAIN SLUMPS HEAVILY. CHICAGO'S WORST EXPERIENCE., HALT CALLED FOR FRIDAYS. ; (Received 0 a.m.) WASHINGTON, July 20. The Secretary of -Agriculture-, • M-r H. A; Wallace, states that he' has been instructed by President Roosevelt to cheek speculation in grain by restoring the requirements by which the grain exchanges must report on long or short accounts of 5000 bushels or more at the close of each day’s trading.

Commenting 1 on the Government’s intention to curb speculation, Mr P. G. Thomas, Democrat member of the Senate for Oklahoma, indicated today that a price fluctuation limit and fair practice code for the Stock Exchange might be demanded, as it concerns the industrial recovery scheme. A message from Chicago states that after a frenzied session, in which grain prices took the worst hammering in the history of the exchange, wheat dropping 13 to 15 cents, the - directors Of the Board of Trade decided to suspend trading in grain and provision futures on Fridays. The directors said their action was taken to permit employees of brokerage houses a much-needed rest, and for no other reason. Officials said no word had been received from Washington bearing on the situation and emphasised that the action had been taken voluntarily. A telegram from Kansas City says the directors of the Board of Trade there have also decided to suspend trading in grain futures on Fridays, as the aftermath of the downward plunge of prices in trading today. They also agreed to an indefinite restriction of price fluctuations. At Winnipeg no restrictions have been placed on trading or price fluctuations by the grain exchange executive, which decided this evening that it would be unwise to adopt measures to interfere with trading on the market there.

DOLLAR RECOVERY. REASONS ASSIGNED. (Received 0 a.m.) LONDON, July 21. The financial writer of the “Daily Telegraph’ ’ says yesterday’s striking recovery of the dollar was attributable partly to profit-taking by speculators who regarded the old parity as a milestone beyond which they believed the dollar would not travel far. To .some extent, the, recovery may have been due to American purchases in England of per cent gold bonds.

WINNIPEG WHEAT.

BIG EXPORT BUSINESS; (Received 11.30 a.m.) '•••• WINNIPEG, July? 21. The largest export business in several weeks will close to 2,000,000 bushels, and firmer Liverpool cables than was expected, combined toddy to steady wheat fixtures, which a quarter higher to one . eenj;, ..lower. July was quoted at-78J,> October .. SOI, December 82 and May 861 cents per bushel. ' •**k£*%ss**&-

EUROPE’S DEMAND

LEGS GRAIN WANTED.(Received 1 p.m.) -7‘MONTREAL, July-’SI. “Europe will want less grain this year,” states Sir John Eusselij' Who has arrived here on his way .to the World Grain Show in Regina, “Many he-said,; “are seeking to make themselves-, soJErSupporting by means of tariff walls.- When these waves of nationalism pass, things will be better for all concerned. “Russian wheat cannot be discounted. The quality hns-much. improved since the warj as a result of experimentation.’ 5 , • * y