Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-25
STOCK PRICES REACT
IN HEAVY SELLING
Tighter Credit Results in
Tightening of Commitments.
Some Issues Gain.
BY STANLEY w. PRENOSIL.
Associated Press Financial Editor.

NEW YORK, July 25.-Pronounced
reactionary tendencies developed again
In today's stock market, although a
sprlnkling OF issues continued to show
independent strength. Selling en-
braced wide variety of stocks, includ-
ing several of the recently popular
rails and public utilities, with net de-
clines ranging from / to 10 points.
The reaction was generally char
acterized as the further readjustment
OF top-heavy speculative position. In
some quarters, there was a tendency
70 attribute the nervousness on the
part OF the speculative public to the
month end credit stringency, the war
clouds in the Far East and recent bank
failures, which have not. however. in
volved any large institutions of conse-
quence.
Business News Favorable.
Call money renewed at per cent
but the supply Of funds was light, and
the rate was marked up to 9 in the
early afternoon. Time money rates
continue firm. Bankers hold out
little hope OF any material easing of
credit conditions in the near future,
barring sweeping reaction in stock
prices, although the Federal Reserve is
expected to increase the supply of credit
available in order to facilitate the dis
tribution and harvesting of crops.
Business news continues generally ia.
vorable. Several favorable half-yearly
earnings statements were published
again today, the Chesapeake g. Ohio
and Allis Chalmers statements being
particularly attractive. A moderate in
crease in Federal Reserve brokers' loans
was expected after the close Of the
market
Many of the early losses were recov.
cred in the later afternoon as the
motors led a rally. General Motors,
Chrysler and Packard rose 134 to nearly
and Marmon more than points.
North American scaled a new peak
above liza. United States Steel regained
all Of its early loss. Commercial SOL
vents broke 9, National Biscuit 3 and
Commercial Investment Trust Al. The
closing was irregular.
Mixed Prices at Opening.
Mixed price movements took place at
the opening of today's market. Initial
gains of ! Il to nearly points were
recorded by Allis Chalmers. Marmon
Motors and Southern California Edison.
U. S. Steel common opened fractionally
higher, Montgomery Ward fell back q
point and American Smelling, Pullman
and North American Co. showed frac-
tional receSsions
Retention of the 5ia per cent dis
count rate by the Bank Of England was
in line with general Wall Street expec-
tations, although a few traders feared
that the recent drain on England's gold
would result in higher rate and fur
ther withdrawal of foreign balances
from New York. Prospects of another
month-end credit Stringency tended to
keep bullish operations in check.
Gains and losses we're about evenly
divided in the early trading, but major
activity appeared to be on the UP side.
American Telephone was marked up to
another new high at 258l2 and Poor &,
Co. at 40l2 in the first few minutes of
trading.
Early Advances.
Further short covering developed in
the motor group. Marmon quickly adj
vancing 312 points and Chrysler IA.
Union Bag & Paper rallied further in
response to the reported sale of its
power properties and General American
Tank was marked up close to par in re-
Spouse to the announcement that q
large investment trust had acquired
block of $4,000 shares of the stock.
Wright Aeronautical rallied points,
Canadian Pacific 2 and Allied Chem
ical, Bethlehem Steel, Radio, Remington
Rand, Westinghouse Electric, Pacific
Lighting and Pacific Gas recorded early
gains of a point or two.