Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-03

permit facilities for the enormous
Shifting in loans. Cash was in plenti-
full supply at per cent with the de-
mand comparatively light. This was
taken to indicate that the speculative
interest has given way to greater vol
lime of outright buying of stocks IN
which every section OF the United
States is participating, as well as for
eign countries.
Buying From Abroad.
Reports were current of large buy
ing orders having been received from
Canada, Britain. Germany, France and
other foreign countries.
Transactions in odd lots will COM
prise 40 to so per cent OF Mondays
business, according to the big odd-lot
houses. This class OF business was an
important factor in the recovery OF
the markets Wednesday and Thursday.
On Tuesday a 10000 000-share day,
when the break in stock prices reached
the lowest point. De Coppet & Dore-
mus reported that their 40 brokers on
the Exchange floor dealt in approx
nlstely $500, 900 shares in odd lots.
Some of the Wall Street houses have
been so short of help in the last few
days. due to overwork of the regular
stats, that thousands of temporary en-
ployes have been taken on to be re-
tanned during the period OF abnormal
volume In some instances these firms
have borrowed pages from the New
York Stock Exchange to act as mes
sengers, and all of the 600 pages were
earning some extra money In this man
ner on Friday and today.
Margin Rate Reduced.
Following the example set few days
ago by F. B. Keech & Co., E. A. Pierce
4, ~ Padnnfinr IF
margin requirements, a move taken to
indicate that the firms concerned are
convinced that relatively healthy con-
ditions in the security markets have
been re-establisl1ed. The reductions
bring margin requirements to 80 per
cent on brokers wire accounts, 10 points
when stocks sell below 80, II points on
stocks selling between 80 and 40 and 80
per cent on stocks above 40.
Advices from other cities indicated
that the restoration of something APP
preaching normal trading conditions in
New York had extended its influence to
all parts of the country. The Chicago
Board of Trade and Stock Exchange, in
joint announcements, stated an agree
ment had been reached to eliminate
dual listings, settling a dispute which
had threatened to interfere seriously
with their business. On the Cleveland
Stock Exchange seat was sold for
$4,000. compared with a previous high
price of $500.
AS the week came to an end the
financial world and investing public sur
veyed what is recognized as the greatest
stock market shakeup and readjustment
in world history, aside perhaps from
wartime periods.
On Edge Of Chasm.
Within a space of approximately 10
TRADING Anus fhA WhnIA finanni0I
ture Of the Nation appeared to trem-
bic on the edge Of q chasm. Owners of
stocks, shorr Of confidence and reason,
tossed their holdings on the market for
what they would bring, and prices de-
Ecended to dangerously low levels. Whis-
pers OF bank and investment house fall
ures, OF insolvencieS on the part of bust
ness and industry filled the air.
At noon Tuesday, when the collapse
looked hopeless, hundreds Of long -eStab-
lished and reputable Wall street institu-
tons could not have said definitely
where they stood.
President Hoover had issued q state
rnent declaring his confidence in the
fundamental SoundneSS of business and
the Nations commercial life. Other
leaders OF his administration and heads
OF the countryS greatest corporations
Endorsed his words but stocks continued
to tumble. From every State and city
and town came selling orders from
panic stricken holders of securities and
these overwhelmed normal buying power
suddenly dwarfed and puny-until
the whole edifice which had been
erected over several years of prosperity
and advancing prices threatened to fall.
Rockefeller Steps in.
Late Tuesday John D. Rockefeller, ST.,
and his son, gave out brief statement
FNTfnn hnd fell
too low and were buying stocks. For
the first time the mass of people who
had sacrificed valuable holdings took
stock of the situation. They realized
that dollars were selling at discounts"
and the repurchasing rush started. \
But meanwhile thousands of specula-
tors who had built fortunes through
the pyramiding OF marginal holdings
we're ruined through the wide down.
ward swing of market prices. For a
time doubt was expressed that recupera-
tive buying power would be adequate
to restore values.
Evidently these conservative thinkers
had only rudimentary knowledge OF the
country's great money resources or had
not taken into account that for many
months the real investment buyers had
remained out of the market because
they thought prices were too high.
Treasured by the expressions Of the
President. knowledge that the most pow
erful banking group in the Nation had
combined to guard against further
collapse in security values and con-
WINGED by the Rockefeller announce
ment that stocks we're going at bargain
rates, this class released the cash saved
for such an eventuality. The flood is
still flowing into the security markets.
Joint Warning Issued.
On the eve of RESUMPTION of stock
trading brokers joined, however. In
warning stock buyers against the specu-
lative excuses which brought about the
disruption a week ago. Advise was re-
iterated that stocks should be bought
for investment yields and not for posi-
bility of increase in principal.
At the same time it was pointed out
that the period of readjustment PROB
ably Is far from completion: that weak
accounts taken over in the recent crash
must be liquidated. and that some OF
the buying of the last two market days
which realized large profits on paper.
may be turned into cash. Warning also
is given that before long the market
should settle to more normal levels as
regards volume, with attendant orderly
trading and smaller price swings.
without doubt the most healthy and
constructive development as Affecting
the stock markets has been the correc-
ton of the credit position. Observers
say that probably no other nation on
earth could have, within year, accom-
plished the sweeping REIMBURSEMENT
which has taken place in the United
States during October The brighter
outlook in credit conditions is illustrated
not only by the $2,440,559,l1l slash in
street loans, but by cut within week
of 81 ,O96 900 600 in brokers loans as
..-z.toI h.y he Todaral Reserve BANK