SLASHING ATTACK ON WALL STREET

Timaru Herald, Volume CXLIII, Issue 20838, 21 September 1937, Page 7

SLASHING ATTACK ON WALL STREET

STRONG REPLY IN LONDON ACCUSED OF PANIC MAKING UNCERTAIN COMMODITY MARKETS United Press Association—By Electric Telegraph - Copyright (Received September 20, 6.30 p.m.) LONDON, September 19. Wall Street is rapidly becoming recovery’s public enemy number 1. London has been quite unprepared for the wave after wave of selling, which has moved even Mr Roosevelt to declare that Investors are suffering from “jitters." The Roosevelt administration, however, must bear a share of responsibility for the present debacle. Anti-speculation m asures have destroyed the market’s normal cau”and consequently unfavourable news producers a maximum of havoc. Lack of Sanity Moreover, Wall Street seems to lack London’s inherent sanity. It behaves as though war is only a minute away, and has been a direct as well as an indirect shock to British investors who backed American recovery to the extent of 450,000,000 dollars. The heavy losses many have had to face are largely responsible for the liquidation which has given London brokers the most unhappy week of the year. One Bright Spot Giltedged has been the sole bright spot, Dominion issues sharing in the firmness. Movements in foreign loans have been wide and erratic. Industrials mostly are lower after a severe test in mid-week, when rumours of provincial difficulties were widespread, but unconfirmed. Oils are not convincing. Rubbers have failed to respond to the strength of the commodity position. Commodities Steady Commodities generally ere disappointing, though comparatively steady compared with stock markets. The sharp break in metals on September 16, appears to have been due to liquidation of a stale bull account built up early in August, and also to unfavourable copper statistics. Tire demand for butter has Improved and consumption is satisfactory though substantial advances are not expected. Wool Disappoints The wool sales have not turned out as most members of the industry thought, Merinos being firmer, but crossbreds lower than expected. Material bought at the London sales is Intended chiefly to cover maturing contracts, hence London prices are not reflected at Bradford, where quotations are based on those ruling in Australia. The outlook, even for the near future, is obscure owing to Emopean and Far Eastern uncertainties, to which the declining franc adds another complication. The decline in the raw material price has naturally deterred buyers, but It is believed that a good volume of business is waiting to be placet directly users feel assured of stear - values. Everyone Is showing extreme caution in regard to forward transactions and the feeling is growing In Bradford that Japan will concentrate on the purchase of cross-breds as suitable for uniforms needed in the Slno-Japanese war.