MARKET BREAK

Wanganui Chronicle, Volume 80, Issue 244, 14 October 1937, Page 7

MARKET BREAK

COLLAPSE IN LONDON RASH SPECULATION THE CAUSE (By Telegraph—Press Association—Copyright) LONDON, Oct. 12. The stock market break is now so serious that even gilt-edged are unable to resist. Dealers unwilling to take stocks, being already overloaded on their books, are quoting wide margins for most securities. The astonishing feature of the collapse is the absence ol any sign ol resilience. The favourable trade figures and record dividends are alike ignored. There is no doubt but that rash speculation is at the foot of the collapse. It is believed that the banks are calling on their customers to redule their borrowings. Il appears that loans to speculators have been larger than was believed formerly. The international uncertainties are aggravating the crisis and the possibility that France will reopen the frontier has revived war-scare talk, which has probably been taken far too seriously. REMARKABLE RECOVERY DIFFICULTIES OF DUTCH FINANCE HOUSE. LONDON, Oct. 12. Following the depressing morning, the stock markets staged a remarkable recovery in the afternoon. Giltedged, despite their weak opening, finished above last night’s prices. American stocks fluctuated wildly. The Australian Associated Press undertands that the bankers met privately to consider the situation. It is believed that discussions revolved around the difficulties of an important Dutch finance house, which was forced to liquidate heavily in London in order to find additional cover against outstanding loans.