Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-31
STOCKS GO LOWER
AS MONEY CLIMBS
List Manitests Good Resist
ance-Banks Call Loans
in Large Lots.
BY GEORGE T. HUGHES.


Special Dispatch TO The Star.
NEW YORK, July 3l-Faced with
the highest call money rate In two
weeks, the stock market reacted today.
At the same time the selling was not
In large volume, a few stocks held out
against the trend. and, all things con-
sidered, the list manifested good
resistance.
Money renewed at per cent,
against 5i2 per cent ON the day before.
Just before noon the rate was raised
for new loans to 6la per cent half
hour later to per cent and then to
7is per cent
Banks called loans in large lots. Be-
tween $5O,000,o00 and $60,000,000 was
withdrawn between 10:40 am. and
1890 pm OF course the sbrmgancy
was due primarily to month-eno le--
uuirements, but doubtless the policy OF
the Federal Reserve authorities to re-
strict speculation figured In the situa-
ton also. 1t has been publicly stated
that the banks were planning a more
strict control over the money market.
especially in the matter OF loans for
the account Of outsiders.
nom the stocks which acted well
In the afternoon when the credit strain
was the heaviest was Montgomery Ward.
| the highest or record.
Most Lose Ground.
Early In the day few stocks man.
aged TO push ahead into new high
ground, but most of them lost the gains
later on Among the stocks which
made the better showing we're Ameri-
can Smelling and Refining. which sold
above 205 for the first time in its his
tory; Postum Co. which above SO was
at the highest since the stock dividend
and Atlantic Refining. which made a
new high on the movement. All of
these had displayed evidence of good
support in other recent sessions and
we're confidently bought.
On the other hand, the motor stocks
sold off almost without exception.
Realizing came into the Dodge Brothers
shares and into Chrysler, noIwithstand-
ing the overnight announcement that
the merger plan had been successful
General Motors slowly receded, Hud-
son was lower decidedly and oaly Hupp
made show of resisting the trend
Montgomery Ward was down mod
erately and the same was true of II. S.
Steel. Eastman Kodak, at 1888. was off
6 points from the preceding close and
more than ii points from the high of
Monday. other specialties fiuctuated
erratically. but generally downward.
Copper Shares DO Better.
Copper stocks stimulated by the
strength in American Smelling did
somewhat better. kennecott was taken
on all concessions still on the belief that
the dividend would be raised. Business
in the metal market is light but prices
hold firm. After the close today the
quarterly income statement Of the U. S.
Steel Corporation will be available. 1t
Is expected TO make pleasant reading
for stockholders. but there was little
sign of this In the market for the shares
today.
A minor incident was the weakness in
Cuba Cane Sugar stocks. The preferred
and common both made new 1928 lows,
in sympathy with the abrupt drop in
the bonds. The failure of sugar prices
to improve was doubtless contributory
cause OF the selling. Other sugar stocks
we're not much affected and South Porto
Rico Sugar. which has the benefit Of
duty-free admission of its product was
higher.