BUSY MARKETS

New Zealand Herald, Volume LXXI, Issue 21717, 5 February 1934, Page 9

BUSY MARKETS

NEW YORK EXCHANGE A RECORD SATURDAY COMMODITIES STRONGER SPECULATIVE ADVANCES By Telegraph—Press Association—Copyright (Received February 4, G. 35 p.m.) NEW YORK. Feb. 3 The speculative advances which have been a feature of the markets on the New York Stock Exchange since the Gold Bill was signed < .mtinued to-day. In spite of the fact that there was only half a day's trading sales of bonds were the largest of any Saturday in the history of the exchange. They totalled more than 17,000,000 dollars worth of stocks. Prices of commodities were stronger, notwithstanding foreign reports of a general How of capital, including much gold, to America. The dollar depreciated and closed at 104.8 gold cents on the new parity, sterling at dollars and the franc at 6.33 cents. It is assumed that Government purchases of gold caused this depreciation. As indicating the renewed confidence in the speculative markets a seat on the Stock Exchange was sold to-day at 190,000 dollars, or 64,000 above tho low rate touched last year.

EMERGENCY RELIEF PRESIDENT'S INSTRUCTION CHECK ON POLITICAL SCHEMERS (Received February 4, 5.5 p.m.) WASHINGTON. Feb. 8 In an address to State directors of the National Emergency Council, President Roosevelt said: "Be 'hard boiled ' if you find any little individual trying to take political advantage out of measures for the relief of human needs."

RESERVE BANK DISCOUNT RATE DOWN EFFECT ON WALL STREET NEW YORK, Feb. 3 Prices of industrial shares and Government bonds increased sharply on the New York Stock Exchange yesterday as the result of an unexpected reduction by the Federal Reserve Bank of the discount rate from 2 per cent to 1£ per cent. A heavy flow of capital into the United States followed, including much gold from France. Tho dollar was somewhat stronger. This retarded the advance of Stock Exchange prices, which turned easy and irregular at the close. Prices of commodities were also weak. The dollar closed at 106.6 gold cents on the new parity; sterling at 4.88 dollars and the franc at 6.22 cents. AMERICA'S ACTION COMMENT IN LONDON SOME PROBABLE EFFECTS British Wireless RUGBY. Feb. 2 Commenting on America's virtual establishment of a gold bullion standard, the Times expresses the view that an immediate effect is likely to bo a loss of gold from the gold countries to the United States. This, it thinks, will be the inevitable outcome of the undervaluation of the dollar which arises from the fact that the rise in American prices has not been sufficient to offset the depreciation of the dollar. It becomes clear, says the Times, that President Roosevelt is determined to stabilise the dollar at not less than the present figure. Confidence will be restored in thoso quarters where hitherto it has been lacking. WAR DEBTS QUESTION NATIONS IN ARREARS FURTHER CREDIT DENIED WASHINGTON. Feb. 3 It was decided to-day to apply pressure upon delinquent European war debtors. The Government pointed out that the devaluation of the dollar had brought about a theoretical reduction of almost 41 per cent in tho amounts owed. Sentiment apparently ruled strongly in the Senate and House of Representatives favourable to . some sort of retaliatory action. A bill to deny further credit to nations in arrears with their war debt payments was introduced in the Senate by Mr. H. W. Johnson ({Republican—California). This was supported by tho Government aud passed.