The Birmingham age-herald., 1923-09-21
SHARP RECESSION IN PRICES AFTER STRONG OPENING

ANAA " I +LNINs sept Au.--t TOItSSlOl- al speculators for the decline re- gained control of today's stock mar ket, bringing about another sharp recession in prices after a strong opening. Owing to the Jewish re- lgious holiday, trading was higher than usual.
 Selling pressure was concentrated in the steel equipment and motor stocks and few specialties. Ameri- can woolen broke more than points to TITS on the circulation of unconfirmed rumors that current earnings were poor, the outlook for spring business unsatisfactory a re- duction in the s7 dividend likely, Oils showed evidence of better sup port, losses in the active issues be- ing held to point or so. Further readjustments in crude prices were announced during the day.
 While Wall street seemed to agree with Secretary Mellon that the busi- ness situation was economically sound and the banking and credit situation was good, some concern was expressed over his statement expressing the opinion that rail rates on farm products should be revised downward. This was reflected in the liquidation of the rail shares, particularly the northwestern car riers which would be the most Vitally affected by such a change The grangets all closed at their lowest prices of the day, the net losses running from small fractions 70 nearly points, Previously, the rails had. offered stubborn resistance to selling pressure.
 Heavy offerings of the steel shares apparently were predicated on scat tered reports of cuts in steel prices by independent companies and fur ther evidence of lessened production in both raw and finished products. United States Steel common broke below S7 for a new low on ths move ment, closing at S71s for a net loss of IS. Heaviness of this issue un- doubtedly discouraged bullish opera tions in other quarters The inde- pendent steels also registered losses of a point or SO.
 Rubbers also were inclined to give away on reports of additional tire price cuts. United States Rubber closed at 37, off 1. but Kelly Spring field snapped back to 27 for slight fractional gain on the day after hav- ing sold as low as 26a. Heaviness Of the motor issues was associated with reports that manufacturers will have to contend next year with an unusually large number of sec lsond hand cars that are being pressed fer sale.
 The meeting of Cosden oil com pany directors, scheduled for today was postponed until Friday The latest gossip is that the annual divi- dend rate will be cut from s4 to $2 hut no confirmation of this could be --rbtained from authoritative sources. ( Sugar shares continued to respond fo higher commodity prices, the gains running as high as points. Resumption of dividends by the Gu han American company led to re- ports that similar action was being contemplated in the near future by the Punta Alegre and Mahati com panies, but these also lacked veri- ficatiOn.
 Money for stock market purposes was again in plentiful supply, the call rate opening at A but drop ming to 31a before the close. Time money also softened, the relatively high rates here attracting interior funds The ruling rates for the longer maturities continued at + ner cent but some 30-day loans were arranged as low as 5A. Brokers loans are now estimated at S1,4OO,- 600, a shrinkage of S50,0Oo,000 last month and $600,0o0,00o below the high figures of the year.
 Foreign exchange were higher in response to the more favorable po- Iitical developments In Europe. De- mand sterling was up nearly half a cent at 454 and German marks jumped from 50 to go cents hun
 Total stock sales 5ss,sOo.
 Twenty industrials averaged se'1o'
 High, 1928, 1o5ss; low. se.s2.
 Twenty railroads averaged So'0'' nef High. afsS' 1923, so.51; low. 7s.5a.