ABSTRACT
The London stock market stumbled in 1929. Some of the small stocks floated during the boom of 1928 began to fail and in amidst growing uncertainty over the possible outcome of the imminent general election, share prices fell.
Outwardly, Hatry’s appeared to be continuing successfully. He was able to launch Associated Automatic Machine Corporation, a combine of companies operating coin machines in public places, Allied Ironfounders, a combine of small light casting foundries, and a loan stock for Melbourne, his first loan stock issued by an authority outside the United Kingdom. These deals were followed up by Hatry’s largest scheme: the purchase and recapitalisation of United Steel as a step towards rationalisation of the steel industry.
Privately, his group was running short of cash. Not only had the stock market falls limited the scope to make profits by selling his shares in Photomaton and other issues, they were obliging him to buy back shares to support the market price.
As time went by, it became more difficult to find the cash his business needed. Nonetheless, public appearances were preserved because it suited both Hatry and his bank creditors to keep knowledge of his difficulties out of public sight.
In consequence, when the collapse of his companies was announced late in September 1929, there had been little warning. It was a profound shock.
