HEAVY LOSSES

Wanganui Chronicle, Volume LXXXIII, Issue 19841, 16 May 1927, Page 7

HEAVY LOSSES

STOCK EXCHANGE SLUMP DISASTROUS DAY IN BERLIN (A. & N.Z.) BERLIN, May 13. The Stock Exchange experienced one of its most disastrous days. An enormous slump in share values resulted in the loss of many huge prixate fortunes, while banks and industries suffered severely. Towards the close of the day the big banks intervened, causing a slight rally, but this did not compensate for the day’s deficit. Ganzstoff artificial silk dropped 150 points and Schultheis’ brewery 74 points. Thousands of foreihgers lost heavily. The Dyestuffs Trust benefited, because it foresaw the slump and sold short, and is now re-buying its own shares cheaply. The lump is attributed, among other causes, to the Bank of England maintaining its rates. ONE HUNDRED MILLIONS “BLACK FRIDAY’S” BILL BURSTING OF A BUBBLE Received May 15, 9 p.m. (A. & N.Z.) BERLIN, May 14. The estimated loss to German wealth .as the result of 11 Black Friday,” with its repercussion throughout the country, is estimated at £100,000,000. Cabinet discussed the situation, when the opinion prevailed that the recent stock market boom conveyed an impression of industrial prosperity which wao non-existent. Criticism is levelled against the extravagant spendthrift habit of a section of the community, compared with the struggle for livelihood of the masses. Cabinet confirmed the fact that the Reichsbank’s foreign currency reserves are low, and endorsed Herr Schachts’ restriction of carry-over credits. In spite of official warnings, the public had been indulging in orgies of share-buying. When the news of Herr Schachts’ action leaked out, the public began throwing shares on the market in heaps. The tragic awakening was reflected in last night’s empty theatres, cabarets and restaurants.