Market Crashes Again

Sun (Auckland), Volume III, Issue 806, 29 October 1929, Page 9

Market Crashes Again

WALL STREET IN A FRENZY “Bears” Overwhelm Bankers BILLIONS OF DOLLARS GO OVERBOARD United P.A.—By Telegraph—Copyright Received 9.38 a.m. NEW YORK, Monday. BILLIONS of dollars in values went overboard as the Stock Market again plunged down, headed by an earlier leading issue, United States Steel. The banking support, which came in to protect the market last week, was unable to prevent today’s disastrous break, which was accompanied by frenzied trading.

There were declines all along the line, and the mainstays of the market, namely the stocks in which the wealthier class has been trading, were smashed downward in record breaks.

Ten, 15 and 20 point reductions were recorded in a brief period. The break began miidSy, but it gathered momentum with sweeping vigour. Stock after stock broke through the resistance levels, and leading issues sank under the low values which were reached last Thursday. Besides United States Steel, General Electric bore the brunt of the selling, while Westinghouse, General Motors and Johns Manville also suffered.

It was the last straw for many who had been holding on patiently, awaiting action from the huge banking pool which was formed last week. They threw their holdings down for what they would bring. The big banking pool held a further meeting shortly after one o’clock, after which it issued buying orders, and the appearance of Mr. J. P. Whit-

ney, of the J. P. Morgan house, and others on the floor purchasing stocks temporarily restored confidence. A slight rally ensued, but by two o’clock even the bankers appeared to be unable to stem the tide, and the “bears” sent the market crashing again in a new selling wave. WHEAT PRICES AFFECTED LOANS TO ENABLE GROWERS TO HOLD CROPS FARM BOARD PROPOSAL United P.A.—By Telegraph—Copyright Reed. 11.20 a.m. WASHINGTON, Mon. The Federal Farm Board, in a statement on Monday, said the shrinkage of stock values had had an unwarranted effect upon wheat prices. The board proposed a series of loans to aid farmers to hold their crops.