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Show Speculators Refuse I ti To Heed Warning I and Crash Comes WASHINGTON. Nov. 10 Tho re cent break In the New York stock mnr ket was due to "unbridled specula tion." Governor Harding of the federal fed-eral reserve board, said In a letter to- j night to Senator Owen of Oklahoma,! who had asked for a direct explanation of the prior crash. Speculators took no hood of warning 1 Issued by l he board and bv the federal j reserve bank at New York, that re serves were declining and that a halt, must be called, Mr. Harding said, and th speculative movement continued. These circumstances, he added, ihon, forced the New York bank to oa'l the attention of re discount iiiK banks to the situation, in order that demands j of regular customers for rail money In handling commercial transactions j might be protected The board had made the specific an-1 nouncement, Mr Harding said, thai it would not sanction 'any pnlioy which I would require federal reserve banks to wnhhold credit demanded bv com-1 merce .-.nd industry for the processes ol production and distribution In or- dcr to enable member banks to fur-! nlsh cheap money for speculative pur- poses " Relative to the board's position I when the market'decline was evident, he explained that in normul clrcum-' stances, one means of checking It I would have been to advance discount rates. This was not onsidered prac-j tit ible however, Mr Harding Bald, be I cause the government ha,i marketed more than $21. 000, 000,000 in Liberty! bonds, a substantial portion or which I was sold to persons who were paying I for them out of savings or accrued income. in-come. Such action would have worked I a hardship, the board believed. ' The high rati - for i ill mones ' he continued, "were m themselves clear .indication of the strained position inro Which the unbridled speculation had' thrown the stock market. A readjust-1 mcnt was rendered inevitable unless ' the resources of the federal reserve1 banks were to be Indirect!) drawn uponfor stock market purposes. |