Douglas daily dispatch., 1927-06-04

X-EX-QlV1QGIlQ .0ZO.
/ NEW YORK, June 8 lF9.-Heavy sell
ing for both accounts finally under
mined today's stock market, although
operators for the rise made several
valiant attempts to retain control OF
the price movement. The first selling
attack around midday encountered
strong resistance although a few wide
open breaks occurred in some of the
specialties, but the subsequent rally
encountered another large volume OF
offerings, which eventually carried
many issues, to nearly 9 points below
yesterdays final quotations.
So great was the volume offtrading
that the ticker at times was nearly
half an hour behind the actual market,
the last quotations being printed 18
minutes after the market closed. The
days sales totaled 2,712, 400 shares, a.
new high record for the year.
Banks called between $20,OO0000 and
$4,000 900 in loans during the day, but
the call money rate held steady at Az
per cent, and there appeared to be
plenty of funds available at that fig
ure. Time money and commercial
paper rates we're unchanged. Reten-
ton of the per cent rediscount rate
by the New York federal reserve bank
was generally expected.
There was nothing in the days news
to explain the selling movement,
which was based chiefly on belief that
the technical position of the market
had been weakened by the recent rapid
advance, and that a downward read
justment was inevitable. The usual
weekend profit taking also swelled
the volume of selling The weekly
mercantile reviews emphasized the sea-
SOnal contraction in business, par
ticularly in most of the basic industries,
but also called attention to the in
creasing firmneSs of commodity prices.
Selling, pressure was particularly
effective against some of the standard
induStrials. u. S. Steel common sagged
from 1855 to 1885, General Motors
from new high record at 202 to 1875,
Baldwin from 2244 to 219 and A1neri-
can Smelling from 164S to 16012, but
all of them rallied slightly from the
low levels. The sharpest receSsions
took place in some of the recently
strong Speeialties such as A. M. Byers,
Case Tareshing, Commercial Solvents
B, u. S. Cast Iron Pipe and White
Sewing Machine, all off to 9 points.
U. S. Rubber sold at the lowest price
since 1925.
Rails yielded to selling pressure after
repeated attempts had been made to
rally them by driving in the shorts in
the Missouri Pacific and Chicago
Great Western issues. The breaks in
Colorado and Southern, Gulf, Mobile
and Southern, Texas and Mexico, Pere
Marquette, Western Maryland second
preferred and Wheeling and Lake Erie
preferred ran from about to 613
points, while New York Central, Wab-
ash common, Western Maryland COM
mon, Reading and several others lost
points or more Earlier, new peak
prices had been established by Della
ware and Hudson, Norfolk and South
ern, Texas and Pacific and few
others. M a >t
In all, $50 individual issues were
! traded in, q new high record for all
time 49,, & 7.a,,E
Pronounced reactionary tendencies
also developed in the commodity mar
kets. Wheat futures reacted az to 8
cents bushel, and the losses in corn
options ran to as much as cents a
bushel Cotton closed to 20 points
net lower and coffee 9 to IA points
lower. Sugar prices showed little
change.
Foreign exchanges also were heavy
Demand sterling ruled around $4.85 3-16
and French francs just below 39114
cents. Japanese yen showed indie
pendent strength by climbing 10 points
to 1925 cents.