Douglas daily dispatch., 1926-08-20
WEAKNESS IN
STOCK MARKET
QUITE ACUTE
Stock market averages
(Bx Dispatch a. P. wirel

NEW YORK, Aug. 19.-Acute weak
ness developed in today's stock market
when large blocks of high grade indus
trials were pressed for sale. The reac-
ton, which reached it's climax in the
last fe wminutes of trading, carried
scores of issues down one to four points
below last nights closing quotations.
Although standard industrials were in
supply during most of the session, a
good buying movement had developed
early in the session for several of the
rails and specialtiesl but this died
down as selling pressure increased in
other sections of the list. There was
nothing in the days news to explain
the selling movement, which was wide
ly attributed to the cumulative effects
of the uneasiness over the money and
loan situation, speculative disappoint-
ment over unofficial intimations that
no stock dividend would be declared
on United States Steel common this
year and the rather general disposition
Of professional traders to tighten COM
mitments until the trend of fall busi-
ness became more clearly defined.
Call money was in plentiful supply
at u per cent, which rate was main
tanned all day. and funds were reported
to be available in the "outside market"
as low as Az per cent. The New York
federal reserve bank announced no
change in the per cent rediscount
rate established last week. Operators
on the long side derived some encour-
agement from the optimistic report of
business conditions given President
Coolidge by the head of one of the
largest mail order houses in the coun-
try and the statement of Arthur Rey-
nolds, leading Chicago banker, who
was quoted as saying that he could
see no clouds on the business horizon
and that he would be surprised if busi-
ness this year would not turn out to be
as good or better than last year.
United States Steel common was
hammered down four points to 1904 i;
General Motors, which has been rather
sluggish since the announcement of the
SO per cent stock dividend, closed 9%
points lower at 202. Mack Trucks,
which recorded a sharp advance of five
points yesterday, touched a new top on
the current movement today at 1861,
broke to 131, and closed at 1919, off
21k net Pierce-Arrow touched new
record top at 127h, slipped back to
s122H, and closed at 123, off points
net. Net losses of 31A points or more
also were recorded by American Smelt-
ing, Dupont National Lead, United
Cigar and Woolworth.
Rails fell back with the industrials,
although the losses were not as large
Buying of Chesapeake & Ohio, which
established new record top at 154B,
was associated with reports that mi
nority stockholders who are opposing
the revised "Nickel Plate" merger plan
are asking over 100000 fo1Ntheir hold
ings or a dividend guarantee of IL per
cent, basing their claim on the roads
high earnings, which ar eeXpected to
exceed $25 per share this year.
Time money and commercial paper
rates were unchanged.
Commodity prices m ove wi h n
rather narrow and irregular limits
Cotton closed 10 to 13 points lower, but
wheat futures showed changes of only
a fraction of a cent a bushel Raw
sugar was unchanged and coffee priceA
advanced slightly.
Foreign exchanges were easier. De-
mand sterling was quoted around
SASSY, and French francs around 2.S2
cents. Moderate recessions took place
in most of the other European rates.