The Washington times., 1923-06-23
STOCK MARKET
HIT HARD BY
FAILURES
Boom in Early Part Of Week
Gets Setback After Great
Crashes.
BY w. s. COUSINS.
Copyright. 1924. by Cosmopolitan
News Service.)

(Copyr1ght 1929 by Cosmopolitan
News Service.)
NEW YORK, June 22.-Wall
streets equanimity was disturbed
this week by the temperance OF
unsettling rumors affecting the
financial status OF a number of the
most prominent brokerage houses in
the financial district. In at least
two cases these runnors had their
foundation in fact, though It was
claimed by one of them that it was
the victim Of unscrupulous operators
who viciously circulated false re-
ports to help along their bear cam
paign.
Matters assumed such q serious
aspect that the president Of the
Stock Exchange. and even the
Secretary Of the Treasury, felt
called upon to issue reassuring state
ments. the first dealing with stock
exchange firms in particular, the
second with the effect Of this week 3
failures on business as a whole.
It was the consensus of opinion
at the close of the week that the
prestige of the stock exchange. and
particularly it's president. had suf-
fered from the collapse of q member
of the organization almost stimuli
LdI0OuSly with tie puUIlCdllOH u a
statement that mo suspicion OF
weakness existed against any firm
whose condition had been exam
ined.
Stock Boom Halted.
It was only natural that the
moderate boom In stock prices,
which seemed to be slowly gather
ing momentum, should have re-
ceived a setback from these failures
and rumors Of failures. The market
was doing well enough in the first
few sessions Of the week. and prob
ably would have continued the TOR.
ward movement had not thinner
man and Forshay interposed az
the psychological moment. Small
traders in stock threw their holdings
overheard in a wild scramble to
unload at the best prices 0btainable,
and bearish traders seized the op-
portunity to pound down the prices
Of stocks in which they had been
operating for upward Of q month or
more.
Conditions bordering on complete
decentralization prevailed in many Of
the speculative markets, notably the
stock market, on Wednesday after
noon, and only the closing gong on
the exchange saved number Of the
highly speculative stocks from
reaching much lower price levels.
Losses Of from two to six points in
the last hour replaced the moderate
gains which had been made in the
whole list up to that time. and new
low levels for the year were estab-
lished in Baldwin, Studebaker,
United States Steel and other promi-
nent stocks.
Sugar Stocks Weak.
Aside from the conditions emu.
merated, stocks in some sections Of
the list were affected by unfavor-
able developments in the industries
they represent. Sugar stocks were
weak on the heavy decline Of raw
and refined sugars, oil stocks con.
tinued to reflect excessive produc-
ton in the California fields and the
evident failure of the restriction
scheme of the leaders in the indus
try, copper stocks rose and fell
with the advance and decline in
prices Of copper metal, and tire and
rubber stocks fell to lower levels
when a second prominent manufac-
turer of tires announced a Is per
cent cut In prices of vacuum cup
tires.
Between the closing Of the market
on Wednesday and the opening on
Thursday speculative sentiment un.
derwent a complete change. The
operation was doubtless helped along
by the general impression that
bankers and powerful bullish COM
binations would support the market,
a prophesy which was fulfilled right
from the opening Of Thursdays
session.
Market leaders sold from one to
three points higher on initial trans
actions. and the advance proceeded
moderately throughout the balance
of the week. AS bankers support
is proverbially temporary, 1t is not
expected that stocks bought for
their account will be withheld from
the market for a long period.
Outside of the purely speculative
markets. the developments Of the
week were uniformly favorable.
Some falling off was reported in
forward orders in metals and tex
tiles, but mercantile agencies report
that the gradually dwindling stocks
OF merchandise on the shelves Of
retailers and jobbers will necessItate
active buying in the early fall
months. Labor is fully employed at
good wages and spending literally.
Business leaders look confidently to
better business In the closing months
Of the year.