DEBACLE FEARED

Nelson Evening Mail, Volume LXXI, 20 October 1937, Page 5

DEBACLE FEARED

NEW YORK STOCK EXCHANGE WAVE OF SELLING BEAR RAIDS HELD RESPONSIBLE [United Arena Asocial ion—By Electrio Telegraph—Copyright] (Received 20th October, 9 a.m.) NEW YORK, 19th October. The Stock Exchange suffered another heavy selling wave, prices dropping from two to 13 points. Steel stocks were the local point of the attack, steel production having dropped seven per cent, over the week and 40 per cent, since last spring. Virtually the entire market, however, is affected. (Received 20th October, 11.20 a.m.) NEW YORK, 19th October. A stock market recession, apparently of catastrophic proportions, began today causing widespread fears that the 1929 debacle may be repeating itself. Sales to midday totalled 3,890,000 shares and if they could have been maintained to the end proportionately, they would have totalled 10,000,000. The selling pressure kept tickers twenty minutes behind. Blocks of stocks were hurled in totalling 3000 and 4000, disorganising machinery communications with brokerage firms and in many cases resulting in offers without takers at any price. Before noon the losses ranged jto 13 points. Allied Chemical dropped 13 points, American Telephone and Telegraph 9, and Bethlehem Steel 81. It is alleged that bear raids are responsible for the persistent efforts to depress the market. Congressman Sabath telegraphed President Roosevelt asking for an investigation into the “Wall Street conspiracy.” LONDON MARKET NERVOUS (Received 20th October, 10.20 a.m.) LONDON, 19th October. Following overnight Wall Street weakness, an earlier decline on the Stock Exchange accelerated the markets, which are nervous. Even commodities are affected. Mines and oils are week. British Funds are quietly steady except Consols.