The Washington times., 1929-08-09
.CHOKED CREDIT
ST 4 GE RS
MARKET
By ". s. COUSINS

NEW 1Ohh. aug. u.N.S.l--
Industrial stocks broke badly today
on the jacl1ing up of the rediscount
rate Of the New York bank to 8
per cent! rallied feebly around the
noon period and dipped in the early
afternoon to the lowest prices Of the
day.
The big bulls came to the rescue
of their favorite stocks as the first
heavy wave of selling dashed madIy
over the market and moderate raj.
Hes took place; but when specula-
tors who had bought for turn"
dumped their shares on the market,
pandemonium broke loose and stocks
tumbled with little show of support.
The reserve boards Campaign
against speculation" reached its
peak this week with the marking
up of the New York Reserve Banks
rediscount rate to per cent.
Heads of the reserve system admit
ted that this was the last resort in
their efforts to shunt money sup
plies from speculation the board
must strangle the market by chok-
ing off credit suppIies( all attempts
for which have been unsuccessful
thus far.
A 20-point drop in General Electric
to 367h and losses of Is points in
American Telephone and Telegraph:
10 points int Goodyear; 5 points in
International Telephone; SIS points
in United States Steel: ia in Ameri-
can Can; in Anaconda Copper; s in
New York Central; x in Montgomery
Ward and 12% in American and For
eign Power marks the widest break
in prices since the May 81 collapse.
In fthe meantime the big market
leaders have moved upward all the
way from 25 to 100 points and to-
j days losses are small by comparison
with their spectacular advances.
When everybody turns seller at the
same time. some by choice and some
by necessity, the only open road is
the directions of lower prices.
| Stock sales up to noon today were
in the same volume as in yesterdays
| full session, and at the rate of 1885,
| 600 shares an hour. A full five
| hours at that rate would total more
| than $500, 900 shares, one Of the
biggest sessions of the year.
Small traders who were able 10
stand the shock of the first heavy
dip in prices gave UP in despair as
a few of the favorites crashed again
below the level of opening prices.
American Cans sheer drop % 1864
| for a loss of more thahan 10 points
was a big disappointment to the
bulls. since this pet of the First
National Bank crowd" has always
been regarded as tower of strength
| in every weakened market.
United States Steel had consider
| able difficulty in lifting itself back
to its opening prices of 216 whicn in
itself was points below Thursdays s
close. It was a nexcellent oppor-
tunty for the pools to stage dem
onstration" in their favorite stocks
and the sharp recovery of radio to 50
was generally attributed to that
| cause.
None of the other reserve banks
| followed New York in raising the
rediscount rate and assurance was
given that the Bank of England
would not raise it's rate this week
and probably not this month. There
was little change in the call money
market and the bill market was
also steady. Even if brokers' loans
are reduced $500, 100000 this week
they will be more than billion
dollars ahead of this time last year.
and. from the reserve bankers
point Of view in need of consider.
able more Correction"
Rail stocks suffered with the in.
dustrials but the widest break, that
of Atchison to 2671s, did not exceed
S1s points. New York Central lost
5 points; Katy 4; Baltimore 6
Ohio 61k and Union Pacific &