THE NEW YORK STOCK MARKET IS CRASHING
New York:
Wall Street crashes again – Panic selling prevails: nearly 13
million shares move. it's the Heaviest trading day and biggest drop in U.S. stock market
history -- Down nearly 11% at one point, the market recovers to end the day only minus 2%. But thousands
of accounts are wiped out nonetheless. The day's volume, 12.9 million shares, dwarfs the previous volume record by 50%.
"The remarkable era of avid public speculation in stocks which has swept over the country during the last five years came to a climax Thursday in the most terrifying stampede of selling ever experienced on the New York Stock Exchange and other leading security markets." (Associated Press)
"The remarkable era of avid public speculation in stocks which has swept over the country during the last five years came to a climax Thursday in the most terrifying stampede of selling ever experienced on the New York Stock Exchange and other leading security markets." (Associated Press)
The collapse begins shortly after the opening
bell and continues through much of the day, as the sell-off that shook the market late yesterday continues. The ticker falls several hours behind, and for a while it appears the exchange might have to close. At one point, the roar from the trading floor grows so loud it can be heard for several blocks down Wall and Broad streets in every direction, and crowds gather to see what the commotion is about. Thousands of people mill around outside the exchange, some of them investors who have lost everything.
Five Wall Street bankers, including Thomas Lamont, head of Morgan Bank, and Richard Whitney, Vice President of the NYSE, are credited with the late rally that turns the rampage. They hold a hurried meeting at the J.P. Morgan offices, then place large purchase orders above market value to stem the tide. Lamont tells reporters, "We consider the situation on the floor of the stock exchange this morning a technical one rather than a fundamental one, and that it will result in betterment. I still see nothing to worry about."
Treasury Secretary Andrew Mellon holds an urgent meeting with the Federal Reserve Bank Board, but basically concludes the same thing as Lamont: the fundamental business environment in the United States is sound, and there is no need for federal intervention. The Reserve Board declines to change discount rates or take any other action.
Five Wall Street bankers, including Thomas Lamont, head of Morgan Bank, and Richard Whitney, Vice President of the NYSE, are credited with the late rally that turns the rampage. They hold a hurried meeting at the J.P. Morgan offices, then place large purchase orders above market value to stem the tide. Lamont tells reporters, "We consider the situation on the floor of the stock exchange this morning a technical one rather than a fundamental one, and that it will result in betterment. I still see nothing to worry about."
Treasury Secretary Andrew Mellon holds an urgent meeting with the Federal Reserve Bank Board, but basically concludes the same thing as Lamont: the fundamental business environment in the United States is sound, and there is no need for federal intervention. The Reserve Board declines to change discount rates or take any other action.
The London and Paris markets also drop, but
Berlin’s stock market rises.
Brussels:
Prince Umberto II, heir to the
throne of Italy, survives an assassination attempt while he is laying a wreath on Belgium's Tomb of the Unknown Soldier. It happens on the same day as the announcement of his
betrothal to Princess Marie Jose of Belgium. As Umberto is about to lay the wreath during a morning ceremony, a man runs out of the crowd and fires a single shot that goes wild. Some witnsses say he is crying out, “Down with
Mussolini!” Before he can get off another shot, police and bystanders subdue him. Umberto, staying surprisingly calm, continues with the ceremony and finishes it.
Later, in police custody, the would-be assassin claims he missed on purpose, only intending to fire into the air in protest. He gives his name as Fernando di Rosa, an Italian national and law student at the University of Paris.
Later, in police custody, the would-be assassin claims he missed on purpose, only intending to fire into the air in protest. He gives his name as Fernando di Rosa, an Italian national and law student at the University of Paris.
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