Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-17
BY /, A. FLEMING.

Governors Of the New York Stock
Exchange showed the financial kings
Of the country how to check panicky
selling of stocks far below their actual
value.
These big fellows, the kings, appar-
emily did not care much about the
drastic character of the liquidation,
permitting the rank and file of margin
spectators to take their medicine ire
spective of the dosage.
Margin calling was not an amuSe-
ment to the brokers Of the country but
A necessity, and they did not hesitate
to press for more and more margins at
the first indications of the de-pyramid-
ing of the millions of shares of long
stock. on which but part Of the price
had been paid. That the drop was not
worse was due to the large margins
that we're demanded for marginal pur-
chases.
For years traders in every city, men,
women and some children, have
been trading in stocks and generally
making modest profits. Other more
important operators have been piling
up, pyramiding profits until they were
so large that the fortunates hesitated
to cash in, disliking to give the Gov
eminent its large share-and the tear
ing down process has wiped away money
earmarked for tax money and bank ac-
count alike.
When the spectators, large and
small, squirmed there was none TO help.
help.
No Money for Stocks.
The banks would not lend a dollar
for marginal account; securities that
had not lost such large part OF their
intrinsic value on paper were brought
out of strongboxes and sold on the mar
kets where they were listed, bringing
serious declines
Bargain hunters, figuratively, roamed
through the lists of the New York Stock
Exchange, made their selections and the
banking fraternity refused to advance
the money to acquire the stock
THE first duty Of this bank is to its
customers, then its shareholders-if you
want cash for your business you can
have it-not for stock purchases, out
right or margins"
Nearly three weeks of declines, pools
giving ii up Just as the small trader
had to, the clerk and the millionaire,
and 1t looked as II there really wasn't
any bottom to the market.
Some one has money-one Of these
days they will stop going on" was the
comment of one Of the older traders in
Washington. No one inquired about
investment trusts. bank support, Rookie
fidence in the big fellowS-they doubted
them.
Put You Cards Down--Face Up"
Then came the order to all members
of the New York Stock Exchange,
Members of the New York Stock Elk
change will furnish full information
regarding their transactions in stocks,
their principals, amount of specific
stocks, long or short, and the principals,
and all other facts in connection with
transactions on the New York Stock
Exchange by Saturday evening: out
of-town members have until Monday
morning to report"
In other words, expose the innermoSt
secrets of your business.
And when the governors call the
members respond.
Some Could Not Afford.
1t will be an interesting Exhibit A"
that the governors will have before
them for their consideration.
Interests that have been aiding the
slump-plain talk about truth--have re-
manned hidden by brokers secrecy, but
they do not want to be recognized As on
top and pressing for further depression
at time ike CnlS, Wnen perhaps Lney
are accredited with trying to check the
decline.
It is one of the probabilities that
many of the short sales have been for
the account of magnates, and covering
that sent the market to higher levels
Thursday and Friday has closed many
of these accounts, so that the governors
will still be in ignorance.
Mr.. Mellon Helped.
Secretary Mellon aided also In his
prediction of a material reduction In
income taxes. A reduction would be
very welcome to big and little business
just now. a bit spotty under the in
fiuence of the stock panicS. The Sc
curity situation in every mart. In all
our larger cities, is sadly strained.
1t is the gilt-edged stocks no less
than the minor shares that have been
taken out of vaults and dumped in an
effort to raise the needed cash TO pro-
tect Wall Street transaction, while
many an investor, high and dry and
unaffected by the smaShes. has been
scared and turned his favOrite invest
ment into cash.
Many Really Unaffected.
While there have been very serious
losses to many, there are also many VINO
have sustained large paper losses who
have not been forced to sell and who