The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-04
STOCKS TUMBLE
AS BANKS JAM
BRAKE0N HARD
Call Money II Per Cent. and
Bears Seize Chance to
Raid Market.
STUDEBAKER DROPS 171-8
Mexican Pet. OFF 1875 in Wild
Trading Of 100000 Share
Day.


zied speculation in Wall Street yes
terday with q suddenness and frmness
that stripped tho gears of many
good sized bank roll and that Jared
the highly speculative motor Oil and
steel stocks with a shock that threw
many pyramided account into the
maelstrom Of wild selling, bringing
heavy losses to holders of stocks and
rich profit to the professionals who
have been patiently awaiting just such
day.
The break brought one Of the wild
est days in the commission houses, on
the floor Of the Stock Exchange and
the smaller exchanges, that has been
witnessed in Wall Street for many a
day. In the late afternoon brokers
fairly fought under an avalanche of
| orders, and as prices in the highly
speculative issues-particularly Stude-
baker Motors and Mexican Petroleum
Company-crumbled away point by
point, and as new stop loss orders
were reached the machinery of busi-
ness was taxed to It's utmost capacity
to stand the strain Of the biggest day
| OF the year.
Sales totalled more than 10000
| shares, the first time since 1917 that
the total has gone by the 1000, 900
mark.
Call Money Scars.
The break was primarily brought
about by the furry in call money. For
the third time since the Federal Reserve
system has been in operation call money
touched as high as IL per cent Back OF
the high price for money were the ex-
| cessive demands and the fact that the
present banking reserve Is comparatively
only small amount larger than the re-
Quired reserve.
Payments on Victory note allotments
in excess OF $4,000 were due yesterday
and this, too. tied up large amounts OF
money which under ordinary circum-
stances would have been available. But
back OF the break was the broader prin-
ciple. held by many bankers. heads OF
commission houses and many Govern
ment officials. that the wild buying and
selling, particularly in the highly spec
ulative issues, should be curbed. Such
a suggestion was made by the Federal
Reserve Board in the morning papers
II had previously been made by one OF
the largest banks In the Wall Street dis
trict and by innumerable prominent COM
mission houses.
AS further straw showing which
way the wind was blowing, most Of the
commission houses called on their Gus
toners, before the opening, for addi
tional margins on the speculative stocks
But despite these warnings and indi
cations Wall Street was crowded in tht
morning with spectators, and the com
mission houses, to which hordes OF Gus
toners have been attracted by the Ions
succession OF million share days on the
exchange, were flled with their usua
throng. The telephones and telegraph
lines dumped the usual heavy volume o
buying orders into the market before tn,
opening, and with the bell sharp ad
vances were made practically all alonL
the line. The morning session showed
little change from those. OF the othel
forty-three million share days which
have preceded It. Quotations surge,
forward merrily and advances of from
TO points we're recorded all along tn,
| line,