The Birmingham age-herald., 1924-05-21
BONUS IS CAUSE OF STOCK SLUMP Flood Of Selling Orders On Exchange Brings
 Price Break

NEW YORK, May 20.-Enactment of the soldier bonus measure over the Presidents veto brought flood of sell ing orders into the stock market today, prices of active shares breaking to 6 points at the opening, recovering half their losses before noon and then slip ping off again so that closing quotations showed net losses ranging from one to four and half points.
 The break in prices, which was one of the sharpest in many months, nat urally resulted in the closing out of some weakened marginal accounts, par ! ticularly of pools, but there was no widespread liquidation on the part of small investors total sales running well below a million shares.
 Thirty-two stocks tumbled to new low prices for the year including such favorites as United States Steel com mon at 95, Baldwin at 104%, Stude- baker at 301a, General Motors at 12%, Stewart Warner at 54, Anaconda at 2SM1z, DuPont at 112, United States h. dustrial Alcohol at 61k and United Drug at 73, several of these closing a point or so above their bottom figures of the day. In addition, several stocks duplicated their previous minimum prices including American Telephone, which dropped more than two points to 123 on announcement of $150,000, 900 stock issue.
 Selling Is Heavy
 Heavy professional selling of stocks was based upon the speculative belief that the soldier bonus measure would be heavy drain on the United States treasury and would preclude the possi- biiity of any substantial tax relief, thereby having restraining effect on business. Indications that this belief was not althogether general was seen; by some traders in the character of the buying orders that appeared during the day. and the absence of heavy liquida- tion by investors.
 On the initial burst of selling DuPont and United States Cast Iron Pipe broke 6 points each, and Baldwin, American Can, General Electric and several others dropped three points or more. When bear traders discovered, how ever, that they had failed to dislodge much Hong" stock, brisk covering movement set in which wiped out about half the losses. Inability or unwilling ness of operators on the long side to follow through on the rally, encouraged another wave of selling by shorts in the early afternoon during which United States, Baldwin and a few others touched their low prices.
 Covering Movement
 Circulation in the financial district of statement by Senator Shoot that the tax bill would be put in shape by the Senate and House conferees so as to gain the President approval; and the appearance of brisk demand for Chesapeake and Ohio, which touched a new 1924 high at 799s, started another covering movement just before the close. New Orleans, Texas and Mexico ad- vanced 3 points to 12115, also new high for the year, in reflection of the declaration of a special cash dividend of 161a per cent in connection with the acquisition of the control of that road by the Missouri Pacific, but it for feited two points of its gain on profit taking.
 Call money held at per cent all day. The time money market continued dull with most of the business being transacted at 90 days at 4 per cent. The commercial paper market was steady with prime names commanding Az per cent.
 Foreign exchanges were slightly re- actiOnary in quiet trading. A further drop of 10 points in French francs to around 53s cents was regarded in some quarters as indicating a free" market for that currency. Demand sterling eased slightly to just under $4.36.
 Total stock sales, BPS, 700 shares. nafa O0 IuduatriaIO on Roilet