Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-02-04
STOCKS IN BAD BREAK /
|RUMOR OF BIG INCREASE
IN RATE is RESPONSIBLE
Liberty and Victory Bonds Reach New
Low Records I'm Days
Trading.
nY nnOADAN WALL.

NEW YORK. Feb. 3.-StOcks broke
hat the 'ocal Federal Reserve Bank
| Of New ork you'd Increase its re-
discount ratn ON conn G9mInerciai paper to
tors which helped bring about the
sharp break In quoted market values
was a call money rate Of II per cent.
foreign exchange to the lowest levels
n history Another unfavorablc in
OF Liberty and Victory bonds to new
iow records. Offerings of securities
we're made throughou, the session at
on hcavy scale. the volume Of trans
actions being III excess or 1000 900
shares. the heaviest turnover in
weeks.
Opcnin.: I'aIri! ad,.
Notwithstanding AN e Knight break
~ AtrrlinS '%chang. y, cents TO the
hound The undcrtonc az the opening
vas fairly steady. som. stocks show
!hE fractional gains, but the genera!
tendency being downward. Shortly
,iter the opening Dame Humor became
federal reserve bank proposed mark
ing up the discount rate again. Inas
,nucn as rumors in the past relative
bank directors have eventually ma
tcrializcd, more than usual crcdcnc"
was placed in the stories heard ia
Inc commission houses throughout the
Jay me downward was accelerated
ny the continued drop To new low
records IN foreign exchange. Offer
ings continued vi. TO the close OF busj-
Icsh' Anal prices being about the low
est of the session. The veal, under
one which prevailed at Tho close
icada brokers to look for further de-
:-rcssion at the opening tomorrow.
Ernrrnt Motor. slump.
! ne extent TO which the decline cN-
'cndcd may y. realized from the f..c-
hat General Motors closed with q net
i?ss OF twelve points: crucibie Steel
Other issues lost from two 10 nvc
points The only consolation the
ne statement that the decline hau
.'pparchtly improved the .cchp!cal
n lT,,i lorrc This hpwevcr fnrn;shea
spectators who viii be in receipt OF
he margin calls that went broadcast
tonight from the commission ana ~'irc
american Wooden came in for con.
siu.raD!e attention with II drop Of
eleven points. closing ~ the bottom
price. Attention was directed to this
= sue By dispat chcs from Washington
"h!ch stated that the department oil
Justice and representatives OF WOODEN
;.sFeement relative to reducing prices
,"r ,he products Of tho latter, Local
bankers have persisted recently that
nere mad been considerable c.edi,
used In speculation in WOODEN goods
Tbosl h'f u.s., to Discount nisc mis-:
maintained that stocks should decline
because our exports would certainly
continue TO shrink with foreign c,-
change declining daily 20 new low
ieveis received considerable cncVur-
hsen"nt on, Of reports that some
panhtuE institutions were refusing TO
htseoun, sterling bills. Large .nsti-
iUt!onS, however. were discountine
n.lls throughout the day. and said
ma ouIE small. urinportant dealers
would take suCh an action. which
wouI2 hc considered highly unfavor-
able. and might influence - collapse
n the foreign exchange market II al
owed by large institutions ,hai ar
. ably ~ tho nart:-r. Il was uo!ut.d
ont THAT the refusal o.: the payrnen.
81 dollars on sterling drafts To an
american exporter would tic % tn.
c-Spprters credit and thus have u ten
'.cncy 10 restrict exports. irominen;
foreign exchange experts however.
helirvc tina, rates VIII continue dowI-
ward