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The drop was accompanied by rumors regarding the whole Kreuger group's solvency. While its earnings have held up (Kreuger & Toll reported $33,000,000 net in 1930) it has been hurt by fluctuations in foreign exchange and the weakening credit position of countries whose bonds it holds. Ivar Kreuger is believed to have borrowed from bankers. Last September Kreuger & Toll had a floating debt of only $50,000,000. The sum was thought to be much higher last week. Much of the selling was from Europe. Kreuger & Toll has 11,000,000 participating debentures outstanding, of which 4,000,000 were issued to pay for the Boliden mine. Eight months ago only 4,000,000 of the remaining 6,000,000 debentures were represented by U. S. shares. Last week all but 500,000 had been transferred to U. S. certificates, a fact which on the surface would indicate that Europe's investors have long known that Ivar Kreuger's creditors might be closing in, that the match's mighty financial flame might be nearly out.