SLUMP IN NEW YORK.

New Zealand Herald, Volume LXVI, Issue 20176, 9 February 1929, Page 11

SLUMP IN NEW YORK.

HEAVY FAIL IN PRICES.

HUGE SELLING ON EXCHANGE

FEDERAL BOARD CRITICISED.

Australian and N.Z. Press Association. (Received February 8, 5.25 p.m.)

NEW YORK, Feb. 7,

Tlio Stock Exchange to-day experienced one of tbo worst slumps for years, and the second largest in its history. Prices declined at the opening on enormous transactions, rallied later on market support, but fell off toward tho close. Many issues fell below the morning's low prices.

Dealings were so active that at ono time tho tape was over half-an-hour late. Radio Corporation shares fell nearly 30 points below tho last quotation. The market had been rising sharply lately, and tlio tochnical position had becoino very weak. It was therefore considered natural that, when tho Bank of England raised tho discount rate, and the Federal Reserve Board announced a more stringent policy regarding brokerage loans, prices should break. Tho preliminary figures showed a decline only surpassed by that of December 8 last year. A message from Washington says that while tho New York Stock Exchange has made the unexpected announcement that there will bo no trading on Saturday, which action is attributed to tho Federal Reservo Board's warning, Treasury officials indicated to-day that no immediate action of a positive character would be taken by the Federal Reserve Board unless forthcoming developments warranted such action.

They further expressed tho hope that there would be a gradual decline in the speculative activity in the stock markets which would ease the money market. It is felt that these indications are given in an effort to check too rapid deflation. Sir. L. T. McFadden, chairman of the House of Representatives Committee on Banking and Currency, has attacked the Federal Reserve Board's action. There is also some talk of an investigation into the alleged premature disclosure of tho board's statement, of which certain speculators took advantage. It is also interesting to note that Treasury officials in Washington knew in advance of the Bank of England's intention to raise the discount rato.