NEW YORK, Nov. 1, 1929 (UP) - Hysterical liquidation of stocks has given way to a tremendous volume of buying and while the exchange remained closed today financial experts reviewed the most unusual week in financial history in an effort to get a clarified perspective on the situation.
Since there will be no more trading until Monday, the financial week ended yesterday with a turnover of 7,149,300 shares in a short afternoon session on the exchange. In the three five-hour days and the one three-hour day, more business was done on the stock and curb exchanges than in any full week in history. The two exchanges accounted for a turnover of 63,879,356 shares.
The 16,410,030 shares traded on the Stock Exchange on Tuesday represented the largest day in history as did the 7,096,300 on the curb on the same day.
The Dow Jones averages give a picture of the market's trend. On Monday and Tuesday the industrial average broke 60.90 points, the largest for such period since the figures have been compiled. The rail average lost 19.26 points. The two subsequent days brought the industrial average back 43.44 points and the rail 12.76.
At the end of the trading Thursday, the weekly table showed nearly every issue lower. But the losses had been cut down sharply. The majority did not exceed 10 points and many were under that. Hundreds of new lows for the year or longer were made in the decline early in the week.
Brokerage loans had been carried up to the almost unbelievable sum of $6,804,000,000, mostly to carry stocks on the margin.
The loan total started this year at $5,330,103,000. It fell below that only during a brief period in mid-summer. Then it progressively increased, setting new records week after week until the latest peak was touched Oct. 2. That was in a declining market and the rise was ascribed more to use of funds for financing undigested securities than to market operations.
Yesterday the Federal Reserve Board at Washington reported a decline of $1,096,000,000, bringing the total down to $5,538,000,000, the lowest point since the week of June 12, when it was $5,284,000,000. A year ago this week the figure was at $4,907,164,000.
That drastic decline of more than a billion dollars was the largest the figure has ever fallen in a single week. It indicated the enormous amount of liquidation in the stock market. The interesting item in the loan report was the contraction of nearly two billion dollars by individuals, corporations and out-of-town banks and a sharp increase in loans by New York banks.
This was taken to mean that the private individuals withdrew funds either to buy stocks or to bolster up weak margins. Corporations withdrew to obtain higher interest rates due to a recession in call money rates. The New York banks tided over the withdrawals by heavy inroads into Federal Reserve credit.
The principal factor in bringing the reckless selling, of course, was the loss of confidence that caused thousands of small stockholders to unload wholesale their securities and stocks.