Falta de confianza en los mercados después de la toma de Barcelona

The stockmarket fell last week three days before Barcelona. Stock prices had been weak since the first of the year and when last week’s break came they were already back at what Dow theorists call «resistance levels» (146 for Dow-Jones industrial averages, 28.8 for railroads) set by the previous reaction in November and December. Both industrial and railroad averages plummeted through these levels on heavy trading volume.

With most of Europe convinced that the fall of Barcelona was not the end of the trouble but perhaps the real beginning, war-scare was doubtless primarily to blame for the break. Brokers reported heavy liquidation from abroad. Acute weakness in foreign dollar issues led bond prices down. The Dutch guilder was weak. And, as always when Europe has the jitters, the heavy flow of gold to the U. S. quickened. In one day last week London arranged to ship £14,000,000.