Evening star., 1927-09-19
STOCKS IN RALLY
AFTER BIG BREAK
General Motors Comes Back
Almost All the Way From
the Morning Low.
by GEORGE T. HUGHES.

! III OEUhUE Il. hNUnES.
| Special Dispatch 10 The Star.
NEW YORK. September ia
drastic break, unlike anything eX'
/ perienced during the past month,
swept through the industrial section
| of the stock market today. 1t COM
inundated itself to the high grade
dividend-paying rails, although the
| declines in the latter group were not
commensurate with those in the re-
cent speculative features. But while
the forenoon break was particularly
significant and clearly indicated that
the market was in highly vulnerable
position. the manner i'm which the
prices recovered in the late afternoon
was equally impressive. Call money
finally went to 4 per cent
General Motors came back over
pra ctiaclly all the ground lost and
United States Steel was back over
more than half its loss while Texas
Gulf Sulphur and North American
attracted considerable attention by
their late strength. The close was
active, with the price movement
highly irregular.
1t was the industrials in which op
erations for the rise centered last
week. and it was natural that they
should have borne the brunt of the
selling once the downward movement
became pronounced. There were no
developments in the news over the
week end TO account for the sudden
desire to get out of stocks. The mar
ket had reached the point where a
technical reaction was in order
Public participation has been on the
increase for many weeks and an over
crowded long position had resulted.
The uncovering of stop-loss orders
placed in the market as protective
measures accelerated the decline.
which extended from / TO as much as
points before the support was en-
countered.
Surplus Decrease Factor.
II anything were needed in the out.
side news to encourage liquidation it
was found in the decrease of more
than sS4000,0 disclosed in the sur.
plus reserve of the clearing house
banks during the past week. This
was reflected in hardening of the
call loan renewal rate to 3& per cent,
against the Si2 per cent figure FRI
day. However, this could have been
used merely as an excuse, and the
tendency of prices on the stock eX-
change today was set down as due to
an unhealthy condition of the market
itself.
General Motors. after opening at
2691a, fell away to 1861 before offer
ings were completed. AT the lower
figure the price was S12 points under
Saturdays final The new stock suf
fered proportionately Other motors
were down from one to more than two
points, with Mack Trucks prominent
in the weakness. Hudson, after mov-
ing alphabetically lower. rushed
back to last weeks final.
There was nothing new in the steel
trade advices to account for the weak
ness in this group. United States
Steel at 1872 was down more than
points on the day and compared
with the recent high of 1907. The
Independents gave way readily. with
Bethlehem, Colorado Fuel, Crucible
and Vanadium off a point or more.
The urgent demand to liquidate
some of the recent industrial special
ties resulted in breaks of points be-
tween sales. This was particularly
true of General Electric, Gimbel and
United Fruit. The copper and metal
shares resisted the selling better than
most others. possibly because they
have not shared to the same extent
in the campaign for higher prices.
kennecott at 7l2 was unchanged and
Anaconda was only fractionally lower
most of the session. Because of its
high selling price the decline in
American Smelling was somewhat
larger, but its comparative steadiness
was noteworthy. Calumet and Ari
zona rallied sharply after a break of
almost 2 points.
The high-grade dividend paying rails
like Atchison. Atlantic Coast Line,
Delaware & Hudson, New York Cen
trail and Union Pacific were moving
sympathetically with the general
trend.
Quiet After Midday.
The comparative quiet that pre-
vailed for an interval after midday
was in direct contrast to the excited
throwing over of all classes of stock
early in the day. The decline had
been carried to such proportions that
it was natural for technical rally to
ensue. Leaders of the decline regained
a good part Of their loss, but many
stocks continued to change hands at
bottom figures.
The weakness in Pan-American Pc
troleum 'B" reflected apprehension
over action to be taken on the divi.
dend later in the week. Houston Oil
broke almost Z points and Barnsdall
Corporation was under pressure. Gen
eraI Motors (old) retraced 2 of the
more than 8 points loss, but the re-
covery was unimpressive. The .steels
continued to be freely offered the
greater part of the afternoon.
The persistent demand for North
American evidently had as it's in
centive some special development
within the company itself. The break
in du Pont extended to 8 points, but
it was natural for this issue to follow
10, 81 1f hn-