"BLACK SATURDAY."

Otago Daily Times, Issue 15621, 26 November 1912, Page 3

"BLACK SATURDAY."

WAR AND FINANCE. WORLD EXCHANGES STAGGERER (Enou Our Own ConnEaroNDEKT.) LONDON, October 16. Somebody is making monoy, no doubt, in thesu days oi uncertainty, but thousands are 10.-ring on all hands. Tho heedless little gentlemen who say " Forward " and "Halt" to tho armies of the Balkans have brought disaster upon innocent homes in Germany, in Franco, in England, and own in America. Tho man who is making most out of the wholo tiling is probably Mr Nonnan Angoll, whoso theory of the interdependence of nations is tiiriving in tho early snows of autnnm. BLACK SATURDAY. Last Saturday tho exchanges of Enropo wore in a stato of |wnic. On tho London Stock Exchange- thcro was positive demoralisation, and Paris brokers had seen nothing like it since tho outbreak of the war with Germany in 1870. In their anxiety over tho Balkan crisis, says tJic Daily Mail, and tho weak stato of the Continental Ixmrscs, Ixmdon dealers brought down prices mercilessly, and not a market escaped from the heavy collapse. Cortaiidy never during tho present crisis havo prices fallon so heavily in so short a time, and it is doubtful indeed whether oven tho oldest members can remember a moro serious " slump " on a Saturday morning, In many markoU prices fluctuated recklessly by points at a time, so much so that it becamo a matter of extreme difficulty to follow them at all. London, moreover, could no longer say with pride that all tho liquidation was coming from tho Continent. London and tho provinces, as well as l'aris and Berlin, woro turning out stock ou tho market. Consols again fell heavily. From 73J thoy dropped to 72 15-16—a now low record prioo for the security in its present form. Although Wall street was closed in celebration of Columbus Day, American market dealers marked down prices by dollars at a time, and Canadian Pacifies were completely demoralised. Amid scenes of the wildest excitement they "slumped," and ultimately closed with a loss of 8J- on tho day anil 18 on tho week. Such favourites as Rio Tinkw and Do Beers wero offered with tho utmost freedom. Heavy falls woro likewise suffered in tho foreign Bond market. All tho leading Russian securities showed losses of from 1J to 2£ points. Among tho war stocks themselves Turkish bonds of 1908 and Bulgarian 4J per cents, dropiwl a couple of points each, whilo Bulgarian C's fell a point. It was noticeable that many foreign bonds nuito outsido tho area of tho Balkan group were pressed for sale, probably by small French investors, who woro being frightened out of their holdings by tho fear of European complications. I'ho Stock Exchange is now onco moro under control, though stocks have not by any moans recovered themselves. Tho small investor, who is tho real backbono of tho market, has reappeared, and a considerable amount of investment business has been done. Thcro must, of courso, bo further liquidations, hut thero is not much probability of another panic. THE THRIFTY FRENCTLMAN.

Tho unfortunate small investors, who arc such a potent evidence of the thrift of Franco, wero liard hit. They hold manv foreign lwnds, and tho all-round panic struck them full. The Bourse was completely demoralised. Tho collapso was worse than in 1882 and 1895. Feverish liquidation continued in an almost unbroken Btream. No ono ventured to buy, and offerings fell flat, meeting with no res|)Oiiso. When tho market opened a porfeet avalancho of selling orders descended upon tho brokers, and thcro was demoralisation in all dqiartmenls. No doubt prices wero a temptation to capitalists, great and small, but tho international situation caused offers even at tho very low rates quoted to fall flat. Buying was nil. The fact that tho largo amount of French money invested in Turkish and Balkan stocks belongs chiefly to small capitalists aggravated tlio financial situation in Paris, which had already been impaired by recent execssivo speculation. Russian funds, in which millions of franca luivo been invested by humble FroiicJunon, wero quoted 3 francs lower than at tho beginning of tho day's business owing to tho gloomy telegrams foreshadowing the possibility of Russia and Austria boinj- involved in a Balkan upheaval. Servians and Turks "slumped" in sympaUiy, and Bulgarians were simply unsaleable. Sensational losses aro ako recorded in Uio various oil shares, which havo recently reached inflated prices on lhe Paris market.

Tho losses on tho Park Bourse up to and including Saturday wero estimated at £16,000,000.

In spito of the panio Paris got over tho fortnightly liquidation quite calmly. Realisations had been carried out on such a largo scalo during tho panic sales that there wan littlo loft to hquidato on tho Parquet.

IN GERMANY.

The Stock Exchanges of Berlin. Frank-furt-on-Matoc, and Hamburg were tlirown into a stato 1 of w'ldest alarm. Investors declined to give the slightest crcdonco to official and semi-official assurances that the war would U confined to Turkey and the Balkans, and dumped the stares on the market in the terror-stricken conviction that all ICurojw was on the brink of a ronflagnvtion. "Tho situation became so critical during the day," pays tho Daily Mail, "that the great Gorinan tanks called a lusty conference at the promises of the Deutsche Bank to adopt omcrgency ways and means. When the conclave became known tho Austrian Ambassador in Berlin was closeted with the Germani Foreign Secretary. Tin's sent fresh slnvors down the s>pino of tho nervous financial public. J! v closing timo unprecedented declines had been recorded." ,

Tlw Bourse at St. Petersburg was also lwdry affivted. and financial "journalists have g..it to tlio "oldest iuliabitant" in tlwir search for adequate supirrhvtivffi Ono of them says "the Berlin Bourse has Hissed tliroug'h days of torror such as the pixwitt gonemtion had never liefom expontiieed." Another declares that the Bourse " has Mrind it a week like whi.-h but few are to bo found in the history of banks aild stock markets." How mil Ji ground thero is for this enrphatic language will 1« recivniiAxl when it is stated"" that since last Monday sliares of 70 wellki»wn industrial foil upwants of 25 par cent. At Vienna tJioro was tlie suae state of tilings, and (be HungaTiati Premiertritsl to cheek tlw downward rush by issuin.' a statenient to tho eiToct t.liat t"hcvr»> was no question of Atustma-Hungary intervoning in tl w Balkan conflict ami d<vJaring that the Government only introduced the supplomontan- defence estimates in view of tJie distant fut.iiro. Tito sittuv t!(vi became si wrions tlvit half an hour before the markets ckv-od a Goverranont ollieial luid a notice posted on ijje Kxcltange Ikmtil stofcinp tliat tlio fiit u:Lt.u>ii had not Kvome wor« in ,-uiv .lir-.Tt.ion. declaring tltat Uvro was' v'o ground for furtkr anx-iely. .vid ilenyw~ the re|)«irt conceniing tlie'mobilisation o"f an army mqis.