Douglas daily dispatch., 1928-03-28

NEW YORK, March 27 P)--A sem
sational break in stock prices followed
by a spirited recovery sent total sales
on the New York stock exchange today
to another new high record at 4,762, 400
shares. Extreme declines which ran
from S to nearly 20 points, were nearly
all recorded in the first half hour. The
rally which followed, gained momen-
tum as the session progressed, most of
the early losses being substantially re-
duced or wiped out, and in several
cases converted into sizeable gains.
The reaction was not associated with
any development in the days news but
generally regarded as natural cor
rection of top-heavy speculative
position created after three weeks of
almost steadily rising prices. Stiffen-
ing time money rates and renewed
warnings by bankers and conservative
commission houses against excessive
speculation may have been contribut-
ing factors.
An opening decline in General Mot
ors, instead of the widely expected
initial bulge to 200 or over, undoubtedly
was largely responsible for the early
flood of selling orders. Several indie
pendent motors, including Chrysler,
Packard and Studebaker, had advanc-
ed to new highs on opening sales. After
ten minute delay the first sale of
General Motors appeared at the spread
quotation Of 1876, the lower figure
representing an overnight drop OF
nearly points. This apparently re-
leased scores of stop-loss orders and
motors quickly plunged to 180, drop
ping from 1876 to 180 between sales.
The break in General Motors was
followed by flood of selling in other
issues, with the result that sweeping
decline was underway in few min
utes. Dupont dropped from 394% to
1904, U. S. Steel from ISL to lac, Hud-
sen from 99% to 90A, Hupp from
58% to So, Montgomery Ward from
1495s to 14O and Sears-Roebuck from
11O1a to 81. Similar receSsions took
place throughout the list.
Supporting orders We're quickly sup
piled, checking the decline and setting
in motion general recovery. Gen
eral Motors rallied to 1907, DUPONT
to 14S47s, U. S. Steel to 14819, Hudson
to 94a4, and Sears Roebuck to 105.%.
Meanwhile new leaders were brought
forward in an obvious effort to revive
confidence. New York Central and
Rock Island were bid up to new high
records at ITO and 1883, respectively
Sinclair was bought in enormous
amounts on a rising scale, touching a
new peak at 28A on unconfirmed re-
ports of buying for control by Stand
ard Oil interests.
Radio was the spectacular individual
feature Dipping to 146A in the open
ing break, the stock rallied to new
high peak for all time at 169, closing
at 1891 for net of 12% points on
the day. Net gains of points or more
also were recorded by Case Threshing,
Christie Brown, Commercial Solvents,
Gabriel Snubber, Hershey Chocolate,
Howe Sound, International Harvester,
Montgomery Ward, Simmons Company
and SloSs-Sheffield Steel.
Call money held steady at Az per
cent all day. Banks called about S.
100000 in loans presumably in anti
cipation of heavy month-end require
mentS. Time money and commercial
paper rates were unchanged. Foreign
exchanges ruled slightly lower with
exception of Japanese yen, which re-
covered 81 points of the AZ point break
yesterday.
Sterling cables ruled around $4.8S
3-16.
Commodity markets moved within
narrow and irregular limits, final
quotations showing few important
changes on Dhe day.