Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-11
LIST BREAKS BADLY
ON STOCK MARKET
Boost of Chicago Rediscount
Rate FaCtor-SeIIinu
Is Heavy.
BY GEORGE T. HUGHES.

Special Dispatch to The staf.
NEW YORK, July 1l-Response to
the increase LII the rediscount rate of
the Chicago Reserve Bank was immedi-
ate and decisive in today's stock market.
Prices opened lower and declined stead
lily all day. with losses running from 2
to points and even more In the case
OF several gh-priced specialties.
The market was weakest in the last
10 minutes, when General Motors, which
had resisted the selling better than any
other leader, gave way and, dipping
under 193 was down over points on
the day. Radio, under 1877, was off Ia
points.
The action at Chicago convinced Wall
Street that a higher r2ts was comm .
at the other reserve banks.
For the past two weeks banking Of
ficials had been contending that sucl,
action was warranted inasmuch as
conditions in that territory justified a
higher rate and while the increase was
expected, it proved not to have been
fully discounted In the stock market.
The call loan renewal rate was again
fixed at 6 per cent but the speculative
community was concerned only with
the outcome of the New York Federal
Reserve directors meeting Thursday.
AS the season progressed, banks
called loans to the extent of 100000
600, with the result that the rate for
new loans was advanced to 6ia per cent
and finally to per cent. Half-hearted
attempts were made to rally the mar
ket, but they made little Roadway, and
when no buying of consequence came
into the leaders. prices slipped back
in most instances to their lows of the
day.
Montgomery Ward in the late trading
was selling at Is as against the previous
final Of 1903 International Harvester
lost some points. General Electric
around 145l2 was down points
The oils shared in the weakness, but
not to the extent OF most other indus
trials Western Union. dropping over
3 points. established new low for the
year. The coppers we're better support
ed than most other groups, with spe-
cial buying In evidence in Kennecott
on belief that stockholders we're in hne
for larger dividends.
Selling In Large Volume.
Selling orders had accumulated in
large volume overnight, with the result
that prices opened down three to four
points generally and in numerous in
SJdI1CES IDSSeS at tklR OutStt CALCnuCA VI
more than Ave points. In several Of the
reached 10 points.
General Motors which furnished the
backbone for operations on the buying
side yesterday opened on block of 1900
shares between 1911 and 1874, &C compared
with the previous final of 1881 ,. The In
dependent motors. notably Packard,
Hudson, Hupp, ChrySler and Stude-
baker dropped one to three points
before there was any semblance OF sup
port. Practically all other classes OF
induStrials shared in the weakness. Con-
certed efforts on the part of powerful
banking interests we're put forth to rally
the market for General Motors, as they
had been on the day before, and they
we're not entirely unsuccessful.
Steel Stocks of.
The steel stocks not only had the
credit situation with which to contend
but also the unsatisfactory price level
u. s. Steel below 1856 was OFF almost 3
points Crucible dropped to within al
most a point of its previous low for the
year and others OF the group were un-
der pressure Case Threshing Machine
broke from $40 to $50. The loss in Allied
Chemical extended almost s points, but
this took into the account the fact
that this was selling ex-dividend, 81. sc
a share.
The rails we're not so much affected
possibly because they had shared to a
lesser extent than the industrials in the
recent operations for the rise Atchison
was an outstanding exception To the
trend and was selling more than a
point above the previous final. Atlantic
Coast Line another in the high-grade
dividend category. changed hands al
ITO, A gain of almost points.