Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-03
STOCKS ARE lower
ON LOAN INCREASE
Rallies Are Followed by
Large 0fferings-FeW
Issues Advance.
BY STANLEY w. PRENOSH,

NEW YORK, October 3 P)-Renew-
al of selling pressure in today's stock
market, inspired by the tremendous in
crease in Stock Exchange member loans
last month, carried u. S. Steel common
and many other industrial, public util-
ity and railroad issues to new low
levels on the current decline. Losses
in most of the active issues ranged
from 2 to nearly 10 points. with Com
mercial Solvents breaking 1912.
AS in most recent sessions, the vol
ume of trading was only moderately
heavy. indicating the absence of any
extensive forced liquidation. Many
traders still hold to the theory that
the current decline will not eliminate
until the volume of trading reaches
record proportions on the
to rally the general list. but offerings
invariably increased as prices rose, and
the attempts were abandoned.
Money Rates Easy.
Except for the huge gain in loans,
which aroused widespread uneasiness III
view of the recent criticism of officials
of the American Bankers Association
and others against the volume of Sc
curity borrowings. there was nothing in
the days news to explain the further
liquidation. Call money renewed at III,
dropped to and thence to s. the low
est rate in about month, but the time
money market continued firm at 70
ga per cent. Sears-Roebuck reported
September sales were nearly 100000
above the same month last year. Bald
win Locomotive stockholders approved
the recapitalization plan and the cor
poration's untitled orders were given as
sic 100000. ..
U. S. Steel common. which sold as
high as 226 yesterday and closed at
223. broke to 2l8ia. General Motors
sank nearly points to another new
low level for the year at 6434. General
Electric dropped 834 points and Radio
sold down more than points to 1894.
Opening Is Higher.
Prices were considerably mixed at
the opening, with gains predominating.
Opening gains Of a point or two were
recorded by Radio. Dupont Standard
Oil of California. Houston Oil. May De-
partment Stores and Westinghouse
Electric. Drug. Inc. dropped 2l2 points
and National Cash Register "a.
The unexpectedly large increase Of
nearly S670,000,o00 in stock exchange
member loans, bringing the total to
new high record at ss,54s. 3S3, 7s7.
brought sufficient selling into the
market to turn the general course of
prices downward before the end of the
first half hour.
International Combustion opened with
block of 1900 shares at AZ, of lis,
and then quickly sagged to 3912, a new
low record General Motors opened
with block of 5000 shares at Sc and
then dropped down to new low record
at 655s, off "a
General Electric dropped nearly 4
points on the first outbreak Of selling,
and Myer & Bros. Lambert. National
Dairy Products and Allied Chemical sold
down to 3l2. At least a score others
quickly sagged a point or more, the
list including American Telephone,
American Can, American Internalionl.
Anaconda. Montgomery Ward. Standard
Gas & Electric Louisville Gas & Elec-
trio. Western Union and United Air
craft.
Strong Spots.
There were a few exceptions. Co.
lumbar Carbon ran up GA points to
new high record at 30434. National
Biscuit was marked up nearly 4 points
and Columbia Gas. By-Products Coke.
Electric Auto Lite and Frank G. Shat
tuck advanced 2 to points, but the
gains were not fully maintained.
The Bank of England made no change
in the discount rate of 6l2 per cent
! established last week. Sterling cables
were slightly firmer, being quoted
around the years high level of $4.S57a.