SHARP RISE IN STOCKS

Taranaki Daily News, 1 November 1929, Page 9

SHARP RISE IN STOCKS

GENERAL RECOVERY MADE EXCITED BUYING OF SHARES DISTINCTLY BETTER TONE By Telegraph—Press Assn. —Copyright. Australian Press Association. New York, Oct. 30. The stock market has made a powerful recovery, the prices jumping from one to 30 points, with tlje total sales approaching eleven million shares. The tension was relieved when it was* seen that the tremendous weight of the “bears” on the market was finally broken. The excited buying of the bargains left from yesterday’s terrific break replaced the dejected selling.

All along the list the stocks which had felt the brunt of the disastrous selling wave were bought in, brokerage houses being crowded with persons eager to halt the selling out of their accounts. Banks continued to support the market with their moral force. The Morgan group again conferred, after which they issued the following statement: “There does not appear to be much to say except what is manifest. Everyone is aware that condi-, tions are distinctly better.” During the afternoon it was announced that the exchange would be closed until noon on Thursday, and also closed all day on Friday and Saturday to enable the brokerage houses to catch up on the tremendous amount of sales. This example will be followed by the various other exchanges throughout the country, including produce and kerb exchanges. . There was some slight profit-taking following the announcement, but the dealing soon picked up momentum again and the machines ran nearly two hotirs behind the quotations. An additional "bullish” feature of the day was the statement issued by Mr. J. D. Rockefeller, sen., that business conditions were sound, that the stocks were too low, and that he and his eon were buying sound common stocks for an investment.

At Chicago the recoveries in the stock market brought a strong tone to wheat trading, the closing prices showing sharp gains for the session. Eastern interests were credited with much of the buying, but there were large sales of flour. Evidences of a better export demand were an aid to the advance. The closing wheat quotations were: December, 128 J cents; March, 135 j cents; May, 139$ cents. Some of the greatest banking houses, namely, Morgan and Company, the National City Bank, the First National Bank, Bankers’ Trust Company, the Irving Trust and the Bank of America have announced that for the present they require the main, tenance of only a 25 per cent, margin on Wall Street demands for loans. Heretofore the margin has been as high as 50 per cent.