Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-08
STOCKS IRREGULAR
| AS LEADERS BREAK
Higher Money Rate and
Weakness in General Motors
Cause Declines.
BY GEORGE r. HUGHES.

Special Dispatch to The Star.
WALL STREET, NEW YORK. August
3.-The irregular downward movement
on the Stock Exchange today was the
result, first, of concern over the money
situation and, second, of the weakness
in General Motors.
Money renewed at - per cent. which
in itself was Disappointing. The Street
had hoped for lower charge AS the
day went on the demand for funds was
reported In excess of the supply with
indications of higher rate before the
close. Shortly after noon the rate went
to per cent.
On top of all this. the specter of an
other increase in the Federal Reserve
rediscount rates wore on speculative
nerves. More or less the approach of
Thursday. which is the meeting day of
the directors of the New York bank
and the day on which the brokers
loans statistics are given out. Is mat
ter of worry every week. 1t was par
ticularly so TODAY.
General Motors Selling.
Selling Of General Motors was con-
nected with the published report that
Chairman of the Board du Pont would
resign his position to be free to par
ticipate in the political campaign.
Then there was increasing doubt as to
the chances of any extra dividend
The result was heavy offerings of the
stock. with sympathetic reaction in
the shares of the independents.
General Motors opened on a block
OF 5000 shares at 1877 to 1861. COM
pared with the preceding close of 1891.
During the morning it sold down below
1875. where it was off more than 3
points Packard dropped points to
n1a r,fT 1tNn tnb
and Hudson lost point or so. Chrysler
had considerable setback. although
there was fairly good support on the
decline. In none of these instances
was the weakness attributed to any I'M
favorable development in the motor
trade itself
Selling spread from the motors to
other induStrials United States Steel
dropped below l40. Montgomery Ward.
which had advanced so spectacularly at
the close Tuesday, was down over 5
points from its high OF that day, around
1872. American Can. General Electric
Allied Chemical, Johns Manville and
other recent favorites worked lower.
Market Inactive on Decline.
1t was significant. however. that the
market was relatively inactive on the
decline. Transactions were far below
ttOSC VI IutSudy WIlen THE llSL was
advancing II the technical condition
had been seriously impaired the volume
would have grown larger as prices sag
ged, but it did nothing of the kind
Standard stocks continued to sag In
the afternoon, but there we're demon
strations in special issues. The theatre
cal stocks jumped around in dizzy
fashion. Pathe class "a" which had
closed at 1872. jumped to 80, up 14ia
points. and then reacted Keith-Albee
Orpheum gained almost points and
then came down again. Reports we're
current of merger negotiations. but 1t
was evident that a sleeping short inter-
est had been rudely awakened
The steel trade weekly summaries
were highly encouraging The Iron
Age spoke of unusual Summer ac-
tivity." The composite price for fin
ished steel, 1t was reported has adj
vanced after having remained station
airy for three weeks. United States
Steel paid no attention to these opti-
mistic statements, but Republic Iron g.
Steel manifested independent strength.
The afternoon selling affected the
oils and the coppers as well as the
motors. II was still true that volume
was limited on the decline. but. on the
other hand there was little rally