The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-08-09
STOCKS LOSE
BILLIONS As
PRICES BREAK
Values CrumbIe in Frenzied
Selling Carrying Mar
ket to Low Points.
DECLINE IS TERRIFIC
Tickers Run Behind When
Sales Double Total
OF Thursday.

| BIZ United Press
NEW YORK, Aug. 9.-Every active
issue on the stock exchange declined
today in one of the worst breaks in
stock market history.
Holders literally threw away their
shares for what they would bring.
Prices crumpled. and repeated at
tempts to rally the market failed.
At the opening values were down
to more than 20 points. Orders
we're punched in blocks Of 5000 to
$4,000 shares and execution of these
huge amounts set a new record for
the first half hour with business at
the rate of more than 100000
shares for a full day.
Later dealings quieted down. At
100 the volume amounted to 3,897,-
100 shares. .Tickers we're seventeen
minutes behind before the end of
the first hour, but they gradually
caught up.
Prices came back in the second
hour, but around noon further SELL
ing set in, followed by another re-
covery. The list then see sawed back
and forth with the trend lower.
Values Lose Billions
Late in the session prices of the
majority Of issues were off five to
ten points, representing a reduction
in market value Of several billions
of dollars.
This terrific decline resulted pri-
marily from the unexpected rails
ing Of the New York rediscount
rate from 5 to per cent.
The increased rediscount rate
had no effect on call money today
and the rate held at per cent
all day with supplies fairly COM
Portable. incidentally the heavy
selling was swinging stocks from
weak to strong hands able to f.
nance larger ventures and there
fore The money market was re-
lieved of heavy strain.
Not only die the New York stock
and curb markets break but the
markets Of practically ali other
financial centers of the country felt
the effect of the discount rate in
crease. Canadian, English, Dutch
and German markets also declined
in sympathy.
Cotton Market Breaks
Sterling declined to a new low for
the year, at a level where gold ship
ments would be profitable from Lon
don to New York. On the local
cotton market prices we're of $3.50
bale, but other considerations than
money were involved, notably the
estimate Of the crop showing L.
100000 bales more expected than
was harvested in 1928. Wheat sold
off fractionally and corn lost more
than cent,
Traders eagerly lookeod for action
from the Chicago Federal Reserve
bank on the rediscount rate, but
none was forthcoming. No an
was made, but it was
expected one concerning the Chi
cago rate might come from Wash
ington after the close as the fed
eral reserve board is meeting again
today.
Late in the day United States
Steel was forced down near its low
for the day and selling became more
pronounced in such stocks as the
utilities, electrical equipments and
highest grade rails, the shares that
made the best gains in recent mar
ketS~
All Groups Depressed
No group was immune from the
selling. The stocks that gained
could be counted on one hand and
they we're preferred shares with
none up more than 4 point on
sales of 100 shares or so.
Sales to 2:10 p. m. totaled 4,270,-
400 shares, with 2,088,400 shares in
the same period Thursday.
Late in the day call money f1rrned
up in tone and there was a, posi-
bility the rate would be carried
higher. This accelerated a selling
spree and had the rate risen the
decline might have gone 10 far
greater depths.
Again, as had been the case sew
eral times in recent months, a.
prominent New York bank came to-
the aid of the money market with
large supplies of funds and tided
over the stringency.