2 NOVEMBER 1929, Page 3

The American Stock Exchange Crash The frenzied selling of shares—even

of perfectly sound shares—during the past few days on the New York Stock Exchange marks the end of an extraordinary boom in which quotations had far exceeded the proper values. For a long time past informed persons knew that prices were fictitious, but investors were backing not their expectation of forthcoming dividends but their confidence in a continuation of the amazing prosperity. The bursting of such a bubble was inevitable. On Thursday, October 24th, nearly thirteen million shares Were sold ; on Monday (when there was a slight rally) more than nine 'Unions ; on Tuesday more than sixteen millions. The sales on Tuesday were the largest on record. On Wednesday there was a small but general recovery.

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