SELLING PANIC ON WALL STREET

Southland Times, Issue 23336, 21 October 1937, Page 5

SELLING PANIC ON WALL STREET

REPETITION OF 1929 FEARED (Received October 20, 7.5 p.m.) NEW YORK, October 19. A stock market recession, apparently of catastrophic proportions, began today, causing widespread fears that the debacle of 1929 may be repeating itself. The sales up to midday totalled 3,890,000 shares and if they could have been maintained to the end proportionately would have totalled 10,000,000. The selling pressure kept the tickers 20 minutes behind. Blocks of stocks were hurled in totalling 3000 and 4000, disorganizing the machinery controlling communications with the brokerage firms and in many cases resulting in offers without takers at any price. Before noon the losses ranged to 13 points. Allied Chemical dropped 13 points, American Telephone and Telegraph 9 and Bethlehem Steel BJ. It is alleged that “bear” raids are responsible for persistent efforts to depress the market. A member of Congress, Mr Sabath, has telegraphed to the President (Mr Franklin D. Roosevelt) asking for an investigation into the “Wall Street conspiracy.” A later message states that just before closing the market demonstrated a complete reversal, the whole list recovering for net gains. Some issues registered as much as a four-point rise on the day’s proceedings. A total of 7290 shares was traded. The recovery is ascribed to large purchases by trust funds taking advantage of bargains. Despite the recovery the market remained uneasy, and the situation elsewhere did not give evidence of great recovery. The Kerby Exchange showed that only 79 of 727 issues were traded, making gains at the end of the day. Chicago, San Francisco, Montreal and Toronto reported that all indices were the lowest since 1935. Bonds on the New York exchanges were even weaker than stocks, every classification losing ground. LONDON MARKETS NERVOUS LONDON, October 19. After the overnight weakness on Wall Street the earlier decline on the Stock Exchange became accelerated and the markets are nervous. Even commodities are affected, and mines and oils are weak. British funds are quietly steady, except Consols.