Evening star., 1924-03-30
MARKET REACTION
FEATURE OF WEEK
Indicated Prices Affected by
Washington Developments
and Daugherty Resignation.
By the Associated Press.

airy price movements prevailed IN
this weeks securities and commodit,
markets. Stock prices reflected frs
attempts to discount slackening busi
ness and the further undermininc
of confidence by Developments D
Washington, including the reSgns
tion of Attorney General Daugherty.
Feeble attempts to bring about raj
lies were quashed by bear traders,
who dominated the situation.
Money rates moved UP briskly fol
funds from this center by interior
banks. The sudden advance in funds
cancelled earlier gains in the bond
market, which experienced the mos
active trading sessions of the yea
during the period Of cheap none
Foreign exchanges htd relatively
firm. with business on a largely re
ductd scale, due to temporary sub
Sidence Of short covering. wh'ch
brought about the sensational 80
vance Of French francs in the PR
ceding fortnight.
Heavy Short Selling.
Heavy short selling and liquidation
Of speculative industrialS during the
of a new low record for the yea
in the average of twenty leading
stocks. Independent strength of the
rails reflected unusually good Fet-
ruary earnings statements, the mrs
fifty-six class ! TO report showin-
as compared with S29.521.000 in tn
corresponding month of 1928. Cot
ton futures broke to new lows on
reports OF curtailnent of mill actly
~
weather conditions, while the whea
market continued unsettled.
Stock prices drifted irregulariE
lower in the desultory trading which
characterized today's short marke'
session. Feeble efforts to prolonG
shortly after the opening by profit
taking. which spread through grea'
part of the Industrial list and drove
the average price of twenty leading
stocks into new low ground for the
year.
Business Volume Small.
Absence of any well defined spec
ulative interest was reflected in the
small volume of business transacted.
The weeks trade reviews Indicated
some uneaSineSs over the failure OF
future orders to develop on a larger
scale, although the current trade ac-
tivitieS were reported und1mlnlshed
Uncertainty over the exact status
of the trade situation, combined with
the tendency to await further deve!-
opmentS at Washington, deprived tht
market of what little buying supper:
had been present and caused SOM
shading in railroad issues despIte
favorable earnings reports.
Selling pressure today was directed
mainly against the independent Stee.
stocks many OF which were carried
down to new low levels for the year
The attack apparently was based on
reports of an increase in competition
and the fear that it would result in
a further shading of prices. The re
duction in buying by automobile
manufacturers. il was felt, also might
have a serious effect on earnings.
While plants of the United States
Steel Corporation were reported this
week operating at almost full capac-
ity. first indications of a falling off
in forward business appeared on the
horizon.
Factor In Selling Movement.
Fear that the independents would
nc the first to feel the effects o.
slackeninC business inspired selling
of Bethlehem. Gulf States, Republic
Sloss- field. Nanadiums American
Steel Foundry and Youngstown. all
of which moved into new low ground
! for 1924
Selling pressure against the indus
lTldl ltdueTS was ISnIcneO, result
/ ing in only fractional recesSionS in
| Steel common. American Can and
! Baldwin, while Studebaker recorded
| a slight gain. Corn Products, which
| dropped points in the first hour.
later rallied on short covering and
closed the day with a fractional net
gain.
! Although price changes throughout
! the rest of the list were narrow. they
were sufficient to establish new minimum
; figures for the year in a number of the
/ less active industrials. These included
! Continental Can, Pressed Steel Car
/ Miami Copper. General Cigar, Submarine
! Boat. Cluett-Peabody. Texas Company
! PierceNArTow preferred and Kelly
! Springfield per cent preferred.
Clearing House Statement.
; The weekly clearing house statement
| showed decreases in the principal items
! Loans and discounts dropped sl3.205.
| o00. cash in vaults $4,000 reserve O.
member banks in the federal reserve
bank $4.OS3,000 and net demand DE-
4! posits 17.4l2.0OO. Time deposits. how
| ever, increased S24,363.o00 Aggregate
reserve totaled S541.7S6.000. leaving Az
! excess reserve of s25,057.S20. an in
crease of s1e,394,290 over the preceding
! week.