SPECULATION IN AMERICA

Stratford Evening Post, Issue 33, 9 February 1929, Page 5

SPECULATION IN AMERICA

FEDERAL BANK} WARNING. PREMATURE' DISCLOSURE. WASHINGTON, Feb. 7. While the New York Stock Exchange made an unexpected announcement that there will bej no trading this Saturday, which action is attributed to! the Federal Reseive Bank’s warning against speculation, Treasury officials indicated today that no immediate action of a positive character would be taken by the Federal Reserve Board unless forthcoming developments warranted it.

They further expressed the hope that there would be a gradual decline in speculative activity in the stock market. It is felt that these indications were given in an effort to check a too rapid deflation.

Representative McPadden, chairman of the House Committee of Banking and Currency, attacked the Federal Reserve Board’s action. There is also some talk of an investigation into the alleged premature disclosure of the hoard’s statement, of which certain speculators took advantage.

It is also interesting to note that officials here knew iu advance of Britain’s intention to raise the rediscount \rate.