Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-27

Wall Street Feels Crisis in
Credit Situation Is
Over.
BY LEMUEL r. PARTON.


NEW YORK, March 27.--As bank
ing houses showed in big wad OF
money to bolster the underpinning of
the stock market today, there were
signs of relief visible all through the
financial district.
Yesterdays big deflation had Jared
lot Of important nerves in Wall
Street, and the steadiness of the open
ing today, with quieter trading, was
welcomed with cheers by the Specula-
tive element.
Stock exchange attendants were busy
again herding worried onlookers in and
out of the balcony, where they could
hear and see their financial balloons
tossed about in the bedlam below.
Many Women Sightseers.
This exciting show brought small
applause from the balcony, for many
of the onlookers had seen their paper
profits fade into thin air in yesterdays
big crash Again today there were
many women among the sightseers,
many possibly shop girls or Stenog-
raphers, a few working men and, In all,
a fair cross section of the eager popu-
lace which has rushed in joyously to
play another mans game.
Usually the stock exchange manage
ment allows visitors to stay about 10
to 20 minutes. Yesterday and today
they kept them moving in squads, al
lowing each group to stay about D
minutes
With sales at record mark of g.
239. GOO shares yesterday and prices
slipping off all over the list, this is
regarded as about the most complete
shakeout of the market in recent years.
There were some desperate efforts to
hold on, with as high as rs per cent
bid for call money in the outside mar
ket, but, so far rs ascertainable, there
was a vast amount of selling on stop
loss orders and not so much margin
calling. With the big slide on, the
floor of the exchange was jammed With
brokers cunning for these stop loss or
ders, making. possibly, a few points
below the order in the swift descent
1t was one of the biggest days for the
brokers and possibly for a few big
shorts, but apparently short interests
were not heavy enough to counteract
the drop.
This morning, seasoned opinion in
the Street. showed no tendency toward
"buck fever" The word went around
that the big bankers had formed pool
to support the market and would keep
call money prices from going to a pro-
hibitive figure. 1t was pointed out also
that the recent climb in prices had been
so tremendous that there was wide
range for fluctuation within the safety
zone. Applying this theory In COMPARE
son with old-time price ranges, the con-
illusions we're that. technically, there is
no reason to fear further disastrous
slunps, at least until after the market
takes another upward squirt. 1t is pre-
dicted that there will be less inexpert
money crowding into the market, now
that many amateur traders have been
Scorched
money Panic Recalled.
It is recalled that in "the money
panic" of 1907 the call money rate went
to 125 per cent In 1893, the year OF
the big railroad strike, money reached
/ per cent day, or 365 per cent q
year, this being the record. In Feb
ruary, 1920. money loaned at 25 per
cent on call. Hence the 20 per cent
rate yesterday did not seem particu-
larly alarming to the veterans.
One effect of yesterdays slump was
that many of the recently formed stock
jobbing pools were severely punished
and 1t was reported today that several
were put out of business. These pools
were weakly eIlCTeHClleU anu, ditiiUusI II
they have been romping along merrily
for the last three months, some of them
are ready for the wrecking crew.
Veterans market observers ascribed
the recovery of confidence and the
steady opening of the market today to
the statements of leading bankers APP
pearing in the morning New York news
papers. The New York Herald-Tribune
published statement by Charles E.
Mitchell, president of the National City
Bank, in which he said: $50 far as
this institution is concerned, we feel
that we have an obligation which Is
paramount to any Federal Reserve
warning, or anything else, to avert, so
far as lies within our power, any dam
gerous crisis in the money market.
While we are averse to rediscounting for
the purpose of making a profit in the
call market, we certainly would not
stand by and see situation arise where
money became impossible to secure at
any price"
other bankers, while refusing to be
quoted directly, said they would do
everything possible to relieve the situa-
ton.