BUSINESS BOOM.

Wairarapa Daily Times, 28 March 1925, Page 5

BUSINESS BOOM.

REACTION IN AMERICA

BIG RAILWAY FAILURE.

NEW YORK, Thursday

After the industrial stock market reached the great height recorded in November pressure began to be felt, due not only to the inevitable reaction, but to other external causes, such as the recent political disturbances at Washington. Such pressure continued, until a break came this week, which affected every variety of stock, including even the soundest, as well as those which made gains on inflated values. The lapse continued for two days, the second day having very serious effects on all railway issues. This was partly due to the appointment of receivers for the St. Paul Railway, which for long has been in a bad condition, and in which it is estimated the stock-holders lost 500 million dollars. In consequence there has been considerable criticism of the Federal Government for not stepping in to save the collapse. The market continued another day in a weak condition, and to-day it was further depressed, owing to the rumours that the Federal Reserve Bank intended to increase the re-,discount rate, which, however, remained unchanged. Nevertheless, another heavy wave of selling was begun, and the prices of several issues were forced into a new low r level.

Thus, w’hile the bottom has not fallen out of’the market, it is at its lowest ebb for six months. —Aus. and N.Z. Cable Assn.