Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-06
STOCKS IN RALLY
AFTER EARLY SAG
Easing Call Money Rates
Check DecIine-Some
Shares Advance.
BY STANLEY w. PRENOSH.
Associated Press Financial Editor

NEW YORK, August 6.-Easins cali
money rates checked sharp decline in
today's stock market. Prices of many
active shares were carried down l To
8 points in the morning selling move
ment but most Of the losses were cut
In half, or better, and a sprinkling of
issues carried 2 to points above yes
teroay's final quotations in the early
afternoon recovery. Trading was
fairly heavy in volume.
Early selling was inspired largely BY
a further break in Middle Western
utilities stocks on the Chicago Stock
Exchange. the high renewal rate on
can loans and predictions of an in
crease in the Bank of England rate
on Thursday. Wall Street recalled that
the disastrous breaks in prices on the
new YORK Stock Exchange in March.
1926, and again in the Spring of this
year were preceded by sharp reactions
IN Chicago and many traders. Fearing
repetition of those experiences. sold
stocks heavily.
Alarms Timid Traders.
The ease with which some of the
n1en grade investment shares melted
away alarmed timid spectators who
were carrying stocks on margin, strong
buying support appeared when the cali
money rate dropped from IL to 10
per cent, and funds were loaned in
the outside market as low as 8 per
cent. There was nothing in the DAYS
business news to account for any change
IN speculative sentiment, as the latest
oatcn OF earnings and sales reports
continued to make favorable compar-
ison with the corresponding period
Detroit Edison, which rallied 50 points
laSt week, broke Is points on a few
sales: American Telephone dropped
6i7, but made up all but a fraction of
its loss before the end of the third
hour. New York Central dropped 7 and
quickly rallied Az, and General Elec-
trlc made up all Of its early drop of
Al points.
Chesapeake g. Ohio, Allis Chalmers.
Standard Gas &, Electric, Pacific Tele-
phone, Auburn Auto, North American.
consolidated Gas. Union Pacific. Amer
lean Can. United Aircraft. Allied Chemi.
cal and A. M ByerS sagged 4 to s points
before suncient buying support ap-
peared to stem the decline.
Meanwhile, pool operations were re-
sumed with increased visor in a fairly
VIDE assortment of public utility, mer-
cnanoismg, copper, food and motor
shares. American Water Works was
marked up points. WESTINGHOUSE
Electric First Preferred 5, May De-
partment Stores 4l4, Worthineton
Pump 4 and Mack Trucks, Newport
Co. Federal Light 81 Traction and
Diamond Match to 4 points. Hershey
chocolate crossed 1l2 to a new high.
.Coppers gathered strength on reports
OF an increased foreign demand for
the red metal; Anaconda, Kennecott
ana Greene Cananea, all selling a point
or more above yesterdays final quota
tons by early afternoon.
Selling Renewed.
Selling pressure was renewed at the
opening of todays market. and prices
of many high-grade investment shares
broke rather sharply. Union Pacific
dropped Az points on the first sale,
Atchison 81 and Missouri Pacific 2.
General Public Service fell points and
American Can, Union Carbide and Com
mercial Investment Trust opened / 70
2l2 points lower. New Haven opened
with block of $500 shares at 49,, up
"a, and new high record. Simmons
Co. advanced point.
The widespread publicity given to the
break in public utility issues on the Chi
cago Stock Exchange yesterday coupled
Will SioWlHS ledTS InaI the Bank O1
England will raise its discount rate,
which will draw funds from the New
York market. brought heavy selling into
the market 1T the opening.
Public utilities and rails were among
the hardest hit, although the latter had
not shared in the spectacular advances
OF the former group. Consolidated gas
quickly dropped 4 points, New York
Central 3l2, American Telephone 3, and
Brooklyn Union Gas, Pacific Lighting,
Columbia Gas, International Telephone.
General Gas &, Electric and Katy"
common yielded to 21n points.