WARMING UP

Southland Times, Issue 21831, 7 October 1932, Page 7

WARMING UP

PRESIDENTIAL CAMPAIGN REACTION TO HOOVER’S SPEECH WALL STREET SLUMP (United Press Assn.—Telegraph Copyright.) (Rec. 7.55 p.m.) New York, October 5. Perhaps not since the war has there been such sharp reaction to a presidential address as to Mr Hoover’s yesterday. The revelation of the nearness of the United States to the brink of financial disaster had a stringent effect on all markets, despite other important news of a most favourable kind.

A heavy selling wave on Wall Street caused stocks to drop two to eight points, the slump being the sharpest of the year. Selling pressure drove the total transactions to 3,000,000 shares. Bonds followed suit and-the losses were widespread. Wheat, cotton and other leading commodities sold “off” and showed wide losses. A Wall Street broker said: “It was a good speech, but awfully bad for business.”

Politically, moreover, there was immediate backfire, Mr J. N. Gamer issuing a long rebuttal to-night on the agricultural policy, charging the President with “lack of administrative ability and leadership and blind adherence to obsolete policies.” Leading Democratic senators at Washington to-night also issued counter statements, and it is expected that Mr Franklin D. Roosevelt will make a reply. Mr Hoover to-day charged the Democrats with spreading falsehoods about the Administration. Mr Hoover’s mention of war debts yesterday is considered a feeler, and Press reports indicate that European diplomats at Washington have seized upon the President’s proposals with enthusiasm. Further developments are expected.