NEW YORK MARKETS.

New Zealand Herald, Volume LXVIII, Issue 20985, 23 September 1931, Page 9

NEW YORK MARKETS.

FALL IN STERLING RATE. FOREIGN BONDS WEAK. INDUSTRIAL STOCKS GAIN. By Telegraph—Press Association— Copy right (Received September 22. 7.15 p.m.) NEW YORK, Sept. 21. Tlio board of governors of the New York Stock Exchange, before the opening of the Exchange to-day, issued a notice prohibiting short selling. Sterling cables on the foreign exchange market sold at 4 dollars, compared with Saturday's closing rate of 4 dollars 85 cents. " The Canadian dollar dropped to a nominal value of cents. This is the lowest for many years. Brokers, however, said there was practically no call for Canadian funds. Some of the banks vent so far as to refuse quotations. After the early losses on the market there was a remarkable recovery, stocks gaining from one to 26 points. Lnited States Steel reached 83j, a rise of 5j points. The market reacted again shortly before the end of the day but closed very strong, most issues showing a gain. For the day 4.400.000 shares were dealt in, the heaviest clay's operations for IB months. The smaller Stock Exchanges throughout the country have followed the example of the larger bodies in stringently controlling short selling. They are demanding that all such transactions shall be revealed, as well as the interested parties. Heavy liquidation occurred on the foreign bond market of the New York Stock Exchange. Australian and Canadian bonds lost severely in the heavy trading. Canadian National Railways lost up to 10 points. Australian Commonwealth 5 per cents., 1955, were quoted at 36; 1957, 37; 4i per cents., 30; Brisbane City 5 per cents., 29, a loss of 10J points; Sydney City per cents., 30. British 54 per cents, remained firm at about last week's quotation of 94^. German Government and South American bonds also fell. Even United States Government issues could not resist the selling wave and declined half a point. Heavy selling occurred on the American grain markets, on the theory that Britain would temporarily suspend buying American grains. FOREIGN CURRENCIES. FLUCTUATION IN STERLING. ADVANCE IN SILVER. NEW YORK, Sept. 21. The pound sterling exchange fluctuated widely to-day. It first fell to the lowest point for 10 years, 3 dollars 75 cents, before rallying to about 4 dollars 35 cents. Bankers experienced difficulty in establishing a market for foreign currencies, and in only a few instances were the rates more than nominal. The Italian lira fell 2 cents, the Spanish peseta 10 points and the French and Swiss francs were unchanged. Silver advanced 1; cents to 29j cents, the highest price since July. The judgment of the officials of the Stock Exchange, who turned deaf ears to urgent appeals, both at home and from abroad, to close the market was vindicated by the unexpectedly orderly session.