Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-07
STOCKS DEPRESSED
by CREDIT Warming
Sharp Break at Opening Fol-
lows Reserve Bank Note
and New British Rate.
BY GEORGE T. HUGHES.

special DlSpatcn TO Inc quar-.
NEW YORK, February 7.-Respond-
ing to the overnight news of an advance
in the Bank of England rate and the
Federal Reserve statement as to credit
conditions, toda~'s stock market broke
with great violence. Losses at the
opening ran from l to S, 10 and as
much as II points, the last named
amount in General Electric.
A partial recovery followed, but it
was not sustained, and in the late after
noon the selling pressure was renewed
and the market for many issues went
into new low ground on the day.
Among the largest declines registered
in the last hour were Johns Manville,
off 81 points at 208, and Radio off So
points at 363 United States Steel and
Anaconda both sold at the low of the
day toward the end, although there was
feeble rally just before business ended.
The initial declines were severe in
the extreme. General Electric opened
on 1900 shares at 231. off II points.
Westinghouse Electric opened $4,000 at
148, off 111s points Nash Motors
opened at 104, off BIZ points. United
States Steel opened on a block of 10000
shares at 1852, off almost 6 points.
International Combustion opened with
10000 shares at 85H, off 8 points.
American Can opened for 10000 shares
at 1101a, off Sc points
Selling Is Enormous.
These are fair samples of the extent
of the break in the active stocks. AS
rule, the rails were better supported
than the industrials, although they, too,
felt the force of the selling.
Before the gong rang word came from
kL%nk oil all
around the room. Most of the offerings
stocks who were thoroughly alarmed
by the credit developments, but there
was a certain amount of short selling
as we'll. In few instances trader
would not only sell his long stocks, but
as much more for short account. Not
withstanding all that has been said
about the large margins required by
brokerage houses, not little of the
selling was forced to protect accounts.
The early break was so wide that
some recovery was to have been eX-
pected. Floor traders and specialists
who had taken stocks at the opening
resold them within an hour at hand
some profits. General Electric ran up
10 points from the first sale and at
241 was still points down on the
day. The rebound here was probably
as pronounced as in any of the i'm
portant stocks u. S. Steel came back
about ~ points, and there was much
variation between these two extremes.
For time it looked as If the whole
market was coming back, but as prices
advanced the selling pressure was re-
newed, and only part of the gain was
held.
Some Recoveries.
In a market such as today's only in
exceptional cases was there any distinc-
ton made between issues. Good stocks
were sold to protect the poor Expert
ence shows that more or less all go
down together. Among the stocks, how
ever, which deserve mention as enjoy
ing better support than the average was
Vanadium. The opening loss in Vana-
dunn was little over points, but most
of it was recovered by noon. Anaconda,
on which the dividend was raised yes
terday, was down little over 8 points
at the start and came back point or
so. Kennecott had much larger loss,
amounting to nearly z points at the
opening.
The volume was heavy on the decline.
In the first half hour sales were 1922
600 shares. One has to go back to No
vember %, 1928, to find anything any,
where near equaling it. On that day
the first half hour accounted for l.
$4,000 shares.