The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-10-15
STOCKS BREAK
ON Big FLOOD
OF OFFERINGS
Market Fails To Rally
Despite Success Of
German Loan

NEW YORK, Oct. 14-stock prices
broke sharply in today's market despite
the overwhelming success attained In
the flotation Of Americas $11O,OOo'OOO
share Of the $20O,o0O,000 German loan,
which was approximately four and one
hale times oversubscribed.
Selling pressure originated with bear
traders, who took advantage Of the
widespread disappointment caused by
the failure OF the market to rally on
the success of the German offering and
the uneasiness of investors and specu-
lators over the political situation. So
great was the desire of many traders
to convert their paper profits into cash
that the market was unable to absorb
the large volume of offerings except at
substantial CONCESSIONS In quoted values,
net losses in the active issues ranging
from to points. Total sales exceed
ed the million mark for the first time
since September "A. The total num-
Der of issues dealt in today was 479,
or 80 below the record high for all time.
United States Steel common opened
unchanged at LOT and then slipped
steadily 20 104%, closing just above
that for O net loss Of IA on the day.
American Can, which had touched 1S0A
in the early dealings broke later to 124h
and then rallied to 124%, off 5. General
Electric closed approximately 6 points
lower at 240. Baldwin showed net loss
Of 2h at 1853.
OIL shares showed the best resistance
to selling pressure, buying support be-
ing forthcoming by announcement by
the Prairie Pipe Line company that 1t
would discontinue pro-rating its crude
purchases and would take 100 per cent
production from the wells with which It
is Connected. Standard Oil OF New Jer-
sey and California, Texas company ana
Barnsdall B were among the relative
" few issues to close higher on the
day but the net gains were OF frac-
tional nature. Special weakness cropped
out, however, IN the Pan-American is
sues, each OF which closed about
points lower Oil shares were helped
by the statement of President Beatty OF
the Texas company that dividends for
the entire year already had been earned,
making allowance for inventory adjust
ments to date. s.-..- 70
one of the surprises of the session
was the vulnerability of the investment
rails to selling pressure. Lackawanna
dropping 51s points to 100 and losses
of to nearly points taking place in
Baltimore and Ohio, Chesapeake and
Ohio, Delaware and Hudson, New York
Central, Louisville ana NASHVILLE anu
Reading.
Associated Dry Goods broke more
than points despite the declaration OF
a dividend, or IL per cent, clearing up
all accumulations, on the second prefer
red stock of Lord & Taylor, subsidi-
airy. Other outstanding weak spots were
American Water Works, Consolidated
Gas of Baltimore, Goodyear Tire, pre-
ferred, Mack Truck, Nash Motors,
Sears, Roebuck, Punta Allegro Sugar,
and National Biscuit, all off points
or more. Declaration of an extra divi-
dend of 81 on the common stock of Ma
tional Biscuit was not announced until
after the market closed.
The heavy demand for funds incl
dental to increased market operations
and the German financing resulted In
the call rate being advanced from 21s
to per cent. A firmer tone also was
noted In the time money market. Com
merciaI papers rates were unchanged.
Foreign exchange rates improved in
reflection of the ready sales of the
German bonds. Demand sterling ruled
about &c higher. around S4.49G. and
French francs were active around SAC,
up about 8 points.