Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-10
RY I. A. FLEMING.

the strenuous readjustment in security
prices with almost daily SlaShing OF
values and the wiping out of millions OF
dollars through losses Of spectators and
investors, without seriously anecting
business itself.
speed ahead sign should be displayed
right along while commodity prices are
melting, where the much mooted sup
| port has not materialized and when
prices for the best commodity stocks
are melting away
It is perhaps fortunate that this Is
the busy season Of the year, fact that
may aid in neutrali1ing the effectS OF
the slump.
There were those, too, who feared
that Fridays market perhaps would
win for itself the designation Of "black." "
and great was the relief when sum-
cient support developed in the flnal
hour of Thursday TO assure steadler
opening and to give promise OF q better
weeks closing.
II has been a most drastic liquida-
ton of margined and cash holdings OF
stocks as well. For two weeks the
minus sign has been appended 70 quota
tons Of stocks and bonds and .curb
shares, with average losses of larger
daily proportion than on many previous
cleanings I'D of the Street. A plus sign
was cause for favorable comment, per-
hang for encouragement in the belief
that the worst was over, and there are
still many investors who, II satisfied
that this Is true, would place suf1cient
orders to help the movement along.
Bank Deposits Decreased.
Naturally bank deposits have de-
creased very materially not only in New
York but all over the country, for the
pre- deluge speculation was broad ana
| the investment of smaller cities and
towns in good dividend payers very
! heavy.
Il required a nervy investor to carry
| on while his shares were dropping 10
points at a crack with net losses OF 20
| to so points in many valuable dividend
payers. Nerves fragile when these
/ awful smashes are repeated session after
session and stocks go by the board.
Dread Something.
The general public, especially those
who have passed through similar scenes
before, dread an undefinable. some.
thing that may happen. Perhaps It
! might be better to say that usually
1 happens as a sequence to Wide-open
| breaks and losses in stocks. No one
knows where the lightning will strike,
nor when, nor whether 1t Is likely to
select as shining mark for q victim a
| big brokerage house, one or mere
brokerage houses. some Of the large IN
vestment trusts or to burn a tran
| through the land.
| Everybody has stood up to the rack
so far in good shape as far as known,
but whether there are to be startling de-
yelopments or not, the Street and the
business world has its ears close TO the
ground in the listening act.
No Big Supporting Orders.
| One wondered where were the great
supporting orders of the Mitchell group,
| the RockefeIlers and the numerous
others who advised the purchase OF
"seeded" common stocks when the
skids we're first creased for the down
! grade movement, for there were no
signs of the kind of support those IN
terestS could have given the market II
! deemed advisable. A week ago the
papers were full Of predictions OF amaz-
J Ing quantities of buying orders accunn-
ulated over the two-day adjournment,
but Monday morning they were untor-
| tunately missing and deluge OF selling
commissions turned loose.
| Likewise. the position OF the invest
nent companies in the sloughing market
has not been defined. 1t has been re-
ported that many relatively small COR
porations of this character have asked
large ones in the same line to take
them over.
seeded stocks" might be picked up
freely by investment companies that
were on top of the market In the first
DAYS Of the decline and might load up
now without much fear OF consequences
Smashing Decline, Slow Recovery.
Recoveries so far have been but frac-
lions of the declines and rear Is ex-
nressed that the list will continue slow,
that so many traders have been wiped
o,,t and scared of that protracted
dull smell may result. Window dressing
this wear will require some preparation
before hand to make 1t really effective.
PROFIT taking when profit taking was
in sight has been one OF the orders OF
! the day in stocks.
The closing session OF laSt 49,
showed more regular action and more
restricted fluctuations, but with an
abundancy of indecision and unsatisfied
self-Searching for the answer among
brokers, and everybody else.
TIPS on the Market.
"Never act on tip" A speaker on
New York stock market subjects gave
this advice to a group of woman listen
s.,
wisdom, for the placing of orders for
stocks or bonds based simply on tips Is
the height Of folly. Many OF the rs
teners had suffered for their acceptance
| and on orders based on tips passed
around on the latter day sewing circle
the bridge table, where the widest CIR
culation is given TO gossip and runors;
Inside Information, the usual alleged
basis of a tip. is often faxed, being pure
Iy an imagination on the part OF some
one desiring TO parade an intimacy with
important people.
Every cleanout such as the market is
going through now. although 60 years
experience has not witnessed anything
comparable. results in making hangers
on In brokers Offices, students OF the
ticker and the markets who have beer
wiped out and are anxious to pick up
few dollars TOR their services as ttpsters
IL possible.
At first these former traders make an
effort to guess it right. but as this Is
one of the hardest things to do they
soon denegerate into the sure thine
l $50 IL -.