BLACK FRIDAY COSTS ERLIN HUGE SUM

Sun (Auckland), Volume 1, Issue 45, 16 May 1927, Page 1

BLACK FRIDAY COSTS ERLIN HUGE SUM

EXTRAVAGANCE BLAMED ORGY OF SHARE BUYING By Cable. — Press Association.—Copyright BERLIN, Saturday. After the Berlin Stock Exchange experienced its terrific slump on Friday it was estimated that the loss to private wealth was £100,000,000 with repercussions all over the country. Cabinet discussed the situation and the opinion prevailed that the recent boom in the Stock Market conveyeu the impression of an industrial prosperity which was non-existent. Much criticism has been levelled against the extravagant and spendthrift habits of a section of the community, which are compared with the hard struggle for a livelihood by the masses of the people. Cabinet has confirmed the fact that the Reichsbank’s reserves of foreign currency are low, and has endorsed the restriction of carry-over credits, which the President of the Reichsbank, Dr. H. Schacht, has enforced. In spite of official warnings, the public has been indulging in an orgy oi share-buying. When the news of l)r. Schacht’s action leaked out the public began to throw their shares on the market in heaps. The tragic awakening was reflected in the empty theatres, cabarets, and restaurant« --a and N.Z.