The sun., 1919-06-14
STOCKS SLUMP
ON 12P.C. MONEY
Highest Interest. Ratio Since
1915 Peace Market Sends
Securities Downward.
SOME LOANS 20 PER CENT.
Motors, Oil, Steel and Equip
ments Chief Sufferers in
Check on Speculation.
SOME LOANS 20 PER CENT.

For the second time within a fort
night the bankers yesterday stuck
their fingers in the speculative pie and
mussed things in the stock market
pretty generally. After an opening
that was far from satisfactory from q
bull viewpoint, the market acted de-
cidedly soft throughout the morning,
and soon after noon began to decline
until just before the close the drop
had assumed the proportions Of an old
time smash in security prices. And
the direct cause behind yesterdays
break was exactly the same as that
which produced a similar decline one
week ago last Tuesday. It was the
rapid jumps In the rate for call money
quoted by the banks.
The highest money rate since the big
terday. when IL per cent. was quoted for
both mixed collateral and for all indus
trial collateral. And even at that figure
money was very hard to get. Some loans
| we're made outside, but not recorded In
tho exchange, at AZ high a. 20 per cent.
Several reasons were assigned for this
big jump in money rates. among them
being desire on the part OF the Federal
Reserve Board to curtail the big specu-
| lative movement which has been under
| way, and gaining impetus almost daily.
for the last three months. Another rea-
son was said to be the withdrawal OF
some $4,000, 900 from the Federal Re-
serve Bank, none Of which was recov-
cred. The necessity for making provi-
sion for the second instaiment OF the
Federal income taxes, which is due on
June Is. was credited in banking circles
| AZ the reason for the shortage Of call
| money.
| F1eeds OF Stop Orders.
Stop orders galore were reached In the
rapid decline Of security prices. although
this was more or less of a surprise to
those who believed the public had such
big profits that It would take a much
| bigger decline to touch their stop orders.
| Many accounts had been sadly weakened !
| In the two breaks Of the last eleven days
however. and these were dumped over
board hurriedly when yesterdays down.
ward drive began.
! In the early part OF the decline It wal
only the more highly speculative indus-
trials and some of those speciaitiea
| which have received more than theil
share Of attention recently which slid
rapidly downward AZ the rate foi
! s.o..< o,nttry.d ~ ~1tv,S, hnv,.,,.- thu
movement broAdened until II had reached
tho rails, and at the time of tho clos.
there were but very few issues quoted
on the board which had held their owr
throughout the session. Those stock,
which had held up were the ones ir
which there were some special develop
ments of a very favorable character and
in which traders had such faith tha
they preferred to let go OF everything
else before dropping them.
Tho session began with an opening
quotation OF 8 per cent. for money. al
well az for renewals OF all outstanding
loanA Before noon. however. the rat
on all Industrial collateral had jumpet
to Q per cent. the mixed collateral quota
ton remaining stationary at per cent
Again there was jump OF tho industria
collateral rate to 10 per cont, but thi
time the mixed collateral. quotation
went With It, and in q short time tn
high point OF IL per cent for boil
classes Of collateral was quoted.
General Motors Leads Decline.
The motor, oil. steel and equipment
suffered the most from the drop. In IN
motor department General Motors le
, the decline as II had previously led tn
advance. and from an opening auotatio
OF 222 It fell OF to 21lh for a net dro
of IL points Maxwell Motor decline
5l points to ~. while Studebaker traile
along with a net decline Of ~ polnts t
10lh. At its low mark OF 101. Btude
baker showed a net loss OF points.
The Steel shares. while their declin
was not 80 violent. took their part Of tn
days lossea Tho performance OF Stes
common. however. was commented o
very favorably by market observer
Opening at 10TH. Steel common sold u
to l0s before the decline set In. The
It dropped gradually on total turnove
Of t7S.s00 shares TO a low mark OF 105 Y
closing at 1883. with net loss OF ~
points Crucible Steel. which has bee
heavily bought in the last week or tw
, as a speculative favorite, was the leade
ofthe steel group in the decline. fallin
. nearly Z points on the day.
One OF the specialties which Is alway
a wide mover either in one direction Q
the other, maintained its reputation we
yesterday. This wac United States Ir
dustrial Alcohol, the nemesis of many
weak margin account, which hit tn
} skids from an opening figure Of 1853 10
, low mark OF 1SSh, closing after a shoi
AAV AN..Aa