STOCK EXCHANGE MOVEMENTS

Timaru Herald, Volume CXLIII, Issue 20894, 25 November 1937, Page 7

STOCK EXCHANGE MOVEMENTS

SHATTERING GAINS AND LOSSES EXPOSURE OF AMERICAN METHODS United Press Association—By Electric Telegraph—Copyright LONDON, November 23. There has seldom been a more extraordinary day on the Stock Exchange. It opened in the deepest gloom and it was almost Impossible to sell stocks. Sentiment, however, suddenly turned, in the afternoon, and traders found almost equal difficulty in buying. Rises wiped out initial losses and in some cases carried shares above their over-night levels. Steadiness in metals and other commodities is creating a more confident feeling. A Paris message states that a better tendency was apparent on the Bourse. French shares opened steadily and advanced throughout the day.

SERIOUS LOSSES SUFFERED SLUMP IN INDUSTRIAL SHARES United Press Association—By Electric Telegraph —Copyright (Received November 24, 5.5 p.m.) LONDON, November 24. "The Daily Herald” says: "Prices have again plunged on the Stock Exchange, and it is estimated that the total loss on London industrial shares In 1937 will be £2,500,000,000, or almost one third of Britain’s national debt. CAUSE OF NEW YORK COLLAPSE REPLY TO STOCK EXCHANGE REPORT United Press Association—By Electric Telegraph—Copyright (Received November 24, 11.15 p.m.) WASHINGTON, November 24. The Securities Exchange Commission, in a long report, ostensibly answering Mr Gay, president of the New York Stock Exchange, announced the collapse of the negotiations conducted with the New York Stock Exchange, in an effort to secure voluntary regulations. The report contains a charge that the members of the Stock Exchange, trading on their own account, made very short sales during the September break in the market, further depressing prices. The report goes on to warn the country that speculative groups have utterly disregarded public interest, thus increasing public distress to a point of demoralisation. The report declares that the Stock Exchange membership is too large, and demands the voluntary revision of the administrative and functional techniques throughout the country’s exchanges, otherwise the Securities Exchange Commission will compel this step to be taken. Serious charges that Government regulations impairs the “broad liquid market for securities” are contained in the annual report of Mr Gay, president of the New York Stock Exchange. Mr Gay granted that good has resulted from Federal supervision but pointed out that the activities of the Securities Exchange Commission created abnormal market conditions by excessive regulation. He warned the public that their Interest may suffer harm as the result, particularly in a time of stress.