Friday, 25 October 1929

New York: 

THE Stock market steadies – It's up 1/2% on near-normal volume at the end of the trading day. The bankers’ infusion of money and orders from yesterday are credited with saving the day.  Stock brokers issue letters to clients cautioning against panic, and so far no brokerage houses have failed.  This is taken as confirmation of statements made yesterday to the effect that the fundamental business environment in the U.S. is sound.  President Herbert Hoover likewise speaks to reporters, saying, "The fundamental business of the country, that is, the production and distribution of commodities, is on a sound and prosperous basis."

Berlin: 

In Europe, especially here, markets are actually encouraged somewhat by the Wall Street crash, believing that a retreat from unreasonable, speculation-fueled highs in the U.S. will steer capital to their markets. 

Meanwhile, news outlets learn that negotiations between the United States and Germany for a war debt repayment plan separate from the Young Plan*, have been going on for five weeks.  The plan would allow the U.S. to remain officially neutral toward the Young Plan, and would provide Germany the option of a two-year postponment of payments to the U.S. upon giving six-months' notice.  No word yet on how the other Allies will view this bilateral agreement. 

Manchuria:

The Chinese government reports that Soviet troops are massing at the Manchurian border in preparation for a larger-scale attack.  (This would be consistent with statements made by a former Red Army general October 19).  The Chinese reports say the Fifth Army Corps, crack troops, are moving to the eastern front, replacing the Seventh Army Corps.  Gen. Zhang Xueliang, the de facto warlord ruler of Manchuria, has reportedly been charged by the Chinese government with commanding the defense of Manchuria.  China's Ministry of Foreign Affairs says negotiations with Russia to settle the dispute over the Chinese Eastern Railway* are deadlocked.

Russia: 

The Soviet Union kills more of its citizens.  In Krasnodar, 21 people described as "bandits" and "counter-revolutionists" are executed, allegedly for subversive activities against the government and terrorizing the countryside.  Supposedly they maintained a facility for forging documents and storing arms and ammunition, and were recruiting more to their cause when they were caught.

In Rostov on Don, 17 people are shot, including 14 former high-ranking officers in the army, charged with fomenting an armed, czarist counter-revolutionary movement in the North Caucasus Mountains.  An additional group of people are sentenced to concentration camps.  The government says the movement, under the guise of a religious sect, massed arms and sent representatives to cities along the Black Sea, encouraging unrest against the Red Army and soviet economic and political policy.


*See definitions page.