Douglas daily dispatch., 1926-08-11
STOCK PRICES
CRACK, WITH A
SHARP DECLINE
(By Dispatch 4. P. wlre)
Total stock sales, 2,1S1,7OO shares.

NEW YORK, Aug. 1v.-High priced
Industrial stocks cracked wide open
under the powerful selling attacks of
professional traders today extreme de-
clines in a number of issues ranging
from to 16 points. Sympathetic de-
clines took place throughout the gen
eral list, giving the market the first
setback since the present "bull'' move
ment started nearly three months ago.
The reaction, while not directly as
sociated with anything in the days
news, undoubtedly was influenced in
part by the increase of nearly $S7,OOO,-
900 in brokers' loans reported by the
New York federal reserve bank in the
week ended July % and by the heavy
calling of loans today, which sent the
call money rate up to 5 per cent.
While there is a rather general feel
ing that the market has not discount
ed all the good news in sight, the adj
vance in many issues has been regard
ed as much too fast in conservative
banking quarters so that today's reac-
tion was not altogether unWelcome.
Growing uneasiness over the French
and Mexican economic situation has
been reflected in the theaviness of the
bonds Of those countries, and the re-
newed weakness of French exchange,
but is believed to have had little di-
rect influence on the price movements
of stocks. The most interesting trade
development of the day was publica-
tion of the July tonnage statement of
the United States Steel corporation
which showed an increase of 123,SS
tons, first gain this year While this
increase was smaller than had been
hoped for in some quarters, it was
pointed out that July ordinarily lows
falling off in new business. United
States Steel, common, broke over S
points, to 1495s, in the late trading.
General Motors was the spectacular
individual feature 1t opened with q
block of $4,000 shares at the spread"
price of 219 to 21114, sold down to 200,
rallied to 218 in the early afternoon,
collapsed to 206 and closed at 2O612 for
a net loss of 15B points on the day.
Heavy selling of this issue was accom-
panied by rumors that no stock divi-
dend would be declared at Thursdays
meeting of directors, but the basis for
these reports, if any, was not dis
closed. Dupont, which has large Gen
eral Motors holdings, also broke 151a
points to 295.
Rails yielded with the industrials, al
though the declines were not as large.
Atlantic Coast Line broke 6% points
to 219H, while New York Central,
Nickel Plate, common; Chesapeake &
Ohio, Southern Railway, Rock Island
and several Others fell back 1 to
points.
The principal commodity markets
pointed upward Active wheat futures
advanced 1 to 21k cents bushel, with
buying influenced by belief that the
crop yield will fall below recent pri-
vate estimates. Cotton closed 4 to
points net higher after an early period
of heaviness.
Raw sugar was unchanged and cof-
fee prices rallied II to 80 points on
trade buying and covering.
Call money renewed at AZ per cent,
advanced to 4 u and thence to 5, clos
ing at the top figure. Out of town
banks are reported to have made heavy
withdrawals during the day. Time
money and commercial paper rates
were unchanged.
Renewal selling of French francs,
which broke over 10 points to around
2.8O cents, featured the irregular for
eign exchange market. Demand sterl-
ing held firm, around $485% Belgian
and Italian rates yielded slightly, but
Spanish pesetas made further recovery.