New Britain herald., 1928-07-11
WALL STREET HAS
 SINKING SPELLS
Marking Up of Call Money Has
 an Effect
tBy Stanley w. Prenosil.

1 Associated Press Financial Editor. } New York, July II R-Stiffenine | money rates brought about another
 sharp reaction ill the Stock Ma rke, 1 today. An opening decline of to .l2 points was followed by rally when the call money exchange rate vas unchanged at per cent. The
 subsequent calling Of S2V, 900 in bank loans, accompanied by tight ening of time money and bankers acceptances. brought about another sinking spell after midday. Heavy liquidation of stocks took place on the theory that other fed eral reserve centcrs will follow the lead of Chicago in marking up the
 rediscount rates 10 5 per cent, and
 that there is little hope of easy
 money before fall, if then. The days
 trade news was largely favorable.
 Weekly steel trade reviews empha-
 sized the fact that the seasonal de- cline ln output had been smaller
 than usual production last month
 being the largest for any June in the
 last len years.
 Call money advanced to per cent after mid-dav
 High priced specialtles were the hardest hit by the selling movement 'ase Threshing, which has been in- active all week sold nearly IS points below the previous sale. Wright Aeronautical broke points, Ameri- can Machine & Foundry sis, Du- pont 'i2. Radio and Johns Manville tla each and Greene Cananea Cop per, General Motors. Curtiss, Gen eral Electric ano Montgomery Ward sold down 1 to 6 points.
 There were few executions to The downward trend, kennecctt Copper standing out with a point gain, while Chickasha Cotton Oil moved into new high ground. New 10" prices for the year, or longer, were recorded by American Woollen common and preferred Pan Ameri- can Western and Western Union.
 Rails yielded with the industrials Texas & Pacific, Wabash, New York Central and Chesapeake & Ohio sold 3 10 points lower.
 Stock prices broke sharply st the opening of today's market in re. sponse to the announcement after the close of yesterdays session of an increase from 4ia to per cent in the Chicago Federal Reserve redis- count rate. Initial declines of 10 points were recorded by Radio Curtiss, Wright and Greene Cananea copper, General Electric dronped 8 points on the first sale and Cerro De Fasco, Hudson. Nash and In. ternational Combustion fell back to 2i2 points.
 Railroads which had been rather immune from the early selling took sharp drop when another batch of selling orders flooded the market, driving down the principal indus trials 10 lower levels than before. |. $. Steel hit 1855 1-c. General Flee. tric 14s, Radio 174. Montgomery Ward 1a5 5-4. Wright Aero 145, Cur tiss 1o1 and Greene Cananea Cop per %. New York Central Chesa- peake & Ohio, Texas & Pacific and Wabash were off to 1-o points.
 The renewal rate for call loans was maintained at six per cent.
 While Wall Street had been look ing for an increase in re-discount rates this month, the change in Chi cago came quicker than most trad CTS had expected, Similar advances are expected in other federal reserve centers although they may be spread over period of several weeks. i Tight money is generally expected 1 to curb speculative activity during the summrr months.
 Early selling was directed chiefly against the high priced specialties | Y" hich had been under pool manipu- ation. Dupont broke 7i2 points, Wright Aeronautlcal extended its loss to points and General Electric 10 l-4 while Johns Manville, HoLs- on Oil. American International and Allied Chemical sold 8 to 4 points over
 General Motors. which recorded a Iulck run-up In the last few min- ltes ol trading yesterday, broke 5x points to 193. but buying support | Vas quickly provided and the stock allied to around 191 before the end | 'f the first half hour. Partial re- 'overies also took place in other | 'ections of the list
 torelen exchanges opened irregu- ar Sterling cables were slightly | lrmer around SASS Tic but most | 'f the other European currencies Ncre hoaYV |