The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-23
DECLINE In CALL
MONEY RATE AIDS
IN PART RECOVERY

NEW YORK, May 22.-Persistent
hammering by bear traders sent
nearly four-score stocks to new low
records for the year in today's stock
market before sufficient buying sup
port was forthcoming to check the
reactionary trend, which has con-
tinued with few Interruptions since
the first week in March. The sharp
rally which followed the early de-
cline with its end turned over sug-
gestive of the elimination OF long
reaction such as has occurred on
many previous occasions in market
history.
When the market was at its low
point of the day around noon the
averages of the barometeric railroad
and Industrial stocks were near the
lows of last November, which wit
messed the turning point of the pre-
vious major reaction. The recovery
was aided by a material easing of
the call money rate which was drop
ped to four per cent after having
receded at Ia and the reported
increase of IA cents a gallon in the
wholesale price of gasoline in
the mid-continent field.
Much of the liquidation that came
into the market this morning was
forced, representing the closing out
of weakened marginal accounts and
extensive selling by pools no longer
able to support their favorites.
Large blocks of United States Steel
common had to be absorbed on the
way down to 95, new low, before
bringing about a turn.
Some of the other popular shares
which touched new bottom prices for
the year were Bethlehem and Re
public steels, Kennecott and Utah
coppers. Standard Oil of New Jersey.
the American issues, Texas
Company and Pacific Cosden and
Sinclair Oils, U. S. Rubber, U. S.
Alcohol, American Wooden, Stude-
baker and Chandler Motors, Public
Service of New Jersey, Atchison.
Northern Pacific, Reading, Lacka- :
wanna, Illinois Central, ST. Paul
Pennsylvania, Rock Island and Erie
railroads.
The afternoon rally started with
California Petroleum and American
Can and soon spread to the rest of
the list.
American Locomotive and Stude-
baker, Kelly Springfield, Corn Pro-
ducts and American smelling
snapped back l to nearly 312 points
-above{ Yesterdays final figures. New
York Central led the recovery in
rails, climbing from 90 to "a Ia
where it was up l Ia on the dav
in a very short time. Canadian Paci-
fic showed a net gain of points
on the day.
One of the many causes assigned
for the recent decline was the huge
sums of capital tied up In the
enormous amount of new securities
issued in the last year and in real
estate mortgages on speculative
building projects, thus reducing me
liquid funds usually available for
supporting purposes.
Time money on per cent
basis with plenty of funds available
for all but the longer matur1ties.
New commercial paper is being re-
ceived in limited volume, the bulk
of the prime names commanding
per cent.
change market was the new low
record of .0O17 IA cents established
for German marks. Trading in the
other foreign exchanges was quiet,
demand sterling holding steady
around s463 IA and French francs
around 6.65 cents. ,,~s
Financial -~T
Days total sa1ssassss-s - 900 shares.
High 1923 1O5.3S; low 92.77.
I Twenty railroads averaged eo'oo'
High 1928, 1O5.SS; low s2.77.