# The New York Times/1929/10/24/Topics in Wall Street

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TOPIC IN WALL STREET.
News, Comment and Incident, On the Stock Exchange and In the Financial Markets.
In the most sweeping and far-reaching decline of the year, and one of which was made on a tremendous volume of liquidation, the market crumbled yesterday afternoon, most stocks breaking through the "old low prices" of the October break and some to the year's minimum points. It was not only on the "big board" it but also on the Curb, in the over-the-counter market and in every exchange in the country, that the wave of fear and apprehension swept feeble support aside and dropped prices lower and lower with practically each succeeding sale. In the last hour of trading values fairly melted away, the declines running from 5 to more than 15 points in to what will long be remembered as one of the most tragic hours in the stock market's history since 1920. The fact that the best stocks could not hold their gains, and crashed violently downward, naturally unsettled the entire list; with little buying support evident, the market closed weak, unsettled and nervous, with prices dragging the low points of the day. Early prices were firm, and the mid-morning trading gave no hint of what was to follow. It was featured, however, by the unsettlement in the motor accessory stocks.
Where the Blow Was Hardest.
Although it was common talk that the "good and bad stocks" were sinking together yesterday, careful examination of the final quotations indicated that the so-called investment stocks of the highest quality were sold rather sparingly. Under the weight of the enormous selling, the better class of stocks did fall with the others, but the pressure was lightest against them and their resistance the best. Some stocks which come in the investment classification had negligible declines as compared with the losses in other parts of the list. One broker said that although, under conditions such as existed yesterday, a speculator for the fall could make a profit without using any intelligence, nevertheless "a great deal of discrimination was shown in the selling."
Margin Calls.
What Wall Street described as an avalanche of margin calls went out of the financial district last night, and it was expected that some of the stock affected will have to be disposed of this morning. It was the third wave of selling in which large numbers of margin calls have been sent out. The first call was well answered; the second, not so well. Few brokers expect a good response from their third calls.
Causes of the Day's Decline.
One comment generally made after the close of the market was that it was inward, rather than outward, developments which caused yesterday's violent decline in the stock market. There was hardly a single item of news which might be construed as bearish. On the other hand, however, confidence in the market had been shaken gravely by the developments of the last few days, and when such leading stocks as General Electric, Westinghouse, Steel, Montgomery Ward and others of the sort began to give ground there was a wild scramble to get out of stocks and out of the market. There was no resistance at all to this wave of liquidation and stocks crashed down in panicky fashion. Quick calls for margin, sent by wire and telephone, brought poor response, and the market, shaken to its foundations, established its lowest level of prices in the last few minutes of trading.
Will the Market Be Supported?
Although it was said on the highest authority that as yet there had been no organized support for the stock market, leading bankers said yesterday afternoon that it was reasonable to expect that something of the kind might come about should the decline get entirely out of hand. It was reasoned that the market might easily be supported since the sound stocks had fallen to levels that made them attractive for investment. The banking interests, it was learned, are watching the situation carefully and stand ready to intervene should such move seem desirable.
Back to Work.
One banker, who discussed the stock market yesterday afternoon without the usual stereotyped formula of comment, said that the decline would at least have one good effect. "It will send back to work many people who have been sitting around brokerage offices for a year or so on the trail of easy money," he asserted. adding: "I have heard thousands of reports of merchants, farmers and men and women in all walks of life literally giving up their businesses to watch the stock market. Most of them will, by necessity, have to go back to earning their living in normal ways."
Railroad Shares Suffer.
The railroad shares failed lamentably yesterday to live up to the role which their supporters had assigned to them. Their sponsors had said they would provide with their increased earnings a background of support to the market. Instead, Baltimore & Ohio dropped 21$^3$⁄$_8$ points, Santa Fé 12$^3$⁄$_4$, Pere Marquette 7. Union Pacific 9$^5$⁄$_8$ and New York Central 7$^7$⁄$_8$. However, Southern Pacific held to a loss of 1$^1$⁄$_8$ points and issues like Erie, Delaware & Hudson, Nickel Plate and New Haven held for losses of lesser amount.
"It's An Ill Wind."
In sharp contrast to the conditions which have obtained for months, and in still sharper contrast to the stockbroker offices, the air of gloom which lately overhung the offices of bond houses has lifted, and yesterday something like cheerfulness prevailed. Bond dealers, who with fortitude have observed their customers go over to the ranks of the "common stock" investors and speculators, were dusting off their desks and preparing for better times. While the stock market has been declining, the bond market has been advancing steadily in recent sessions, and yesterday's trading in listed bonds reached the highest total since April 20, 1928, with good gains showing throughout the list.