SLUMP IN SHARES

New Zealand Herald, Volume LXXIV, Issue 22864, 20 October 1937, Page 15

SLUMP IN SHARES

DUTCH "BEAR" POOL HUGE PROFITS MADE LONDON. Oct. 13 Drastic measures to counteract the depredations of a £10,000,000 Dutch "bear" pool which- is alleged to be operating in London and New York are reported to have been decided upon at an important meeting of the Bank of England to-day. Recent slumps in the market were reviewed al the meeting, and particular attention was devoted to the fall in British gilt-edged stocks. Operating from Amsterdam, and concentrating on the London morning and Wall Street afternoon and evening exchange operations, the pool is said to have made successive raids. British and American securities, raw materials and commodities were the principal objectives of the "bears." Cojiper, cotton and tin were particularly affected. Members of the pool cleaned up millions, causing nervousness in the New York and American stock markets which spread throughout the world. Other reasons contributing to the drop in share prices were given in London by experts to-day after the market had reopened with a reactionary tone which was principally ascribed to the international situation. ]n well-informed London financial circles it is believed that the slump was line partly to investors waiting for the bottom of the market. A combined attack of nerves caused by the foreign situation was another factor.