Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-27
STOCK Prices DROP
IN HEAVY SELLING
Market Breaks on unexpect-
Z. edIy Large Gain ip
Brokers' Loans.
BY STANLEY w. PRENOSYL,
Associated Press Financial Editor.

NEW YORK, September 2T.-The
stock market tried yainly today to ever
come the bearish influence of an unex-
pectedly large increase Of Sls2, oO0, 900 in
Federal Reserve brokers loans, but the
seLiing orders were 50 large that the
market was sWamped, and prices broke
wide open. A score or more high priced
stocks broke 10 to IS points, while de-
throughout the list.
Call money renewed UNCHANGED 1t
per cent with indications that the
rate would be maintained all day. Time
money rates held arm at D TO eX per
cent. wall Street was trying hard TO
determine the effects here of the rais-
lpg OF the Bank Of England discount
rate, some observers contending that
the action already had been discounted
ana would have no effect on the credit
situation here, while others feared that
II would lead to heavy withdrawal Of
foreign balances as resdIt OF the
action OF other Central Europeans banks
IN raising their bank rates in sympathy
with London. : :
Another forward movement. was start
ed In the Western group Of the utilities
In the last hour and STANDARD Gas q
Electric was lifted to 1884, a new top.
American Water. Works returned TO
1887. and Southern california rose 4
and Pacific Lighting 6. also new hirhs.
while Industrial Rayon advanced 12Ia.
The general list, after raAying, turned
downward again in sympathy with an
other drop IN United States Steel and
RADIO. The close was weak.
Opening Is Weak.
The unexpectedly large increase of
1892 ,00O, 900 in Federal brokers' loanx
brought q flood OF selling orders into
the market over night, and opening
prices were weak. American Telephone
dropped points ana Eastman Kodak,
Westinghouse Electric, and Columbian
Carbon dropped 4 to N. Initial de-
clines OF point Of two were recorded
by United States Steel common, A. N,
Byers, American &. Foreign Power.
Radio, Sears Roebuck. Internationai
Harvester and United Aircraft. Marmon
Motors, which dropped more than II
points to . new low record yesterday.
rallied IA points on the frst sale.
TWO views were taken Of the large
increase In brokers' loans, one that Ii
indicated that stocks were passing from
strong to weak hands, and the other
that It represented the normal Fall ex-
panSlon OF commercial activity. mas
much as many traders had expected a
decline in loans, the large gain naturally
had a chilling effect on speculative en-
thusiasm. - .1.--
Strong buying support was quickly
supplied to check the initial decline.
Pool operations were resumed with con-
siderable violence In q sprinklinR Of
public utilities and speciaities. stand.
ard Gas d Electric ran up: S points.
National Biscuit AZ. Underwood Elliott
Fisher 31a and Atlantic Gulf d west
Indies l, all to new high records.
Early FavOrites. ..-
Stone & Webster was marked Nm
nearly 4 points, U. S. Industrial Alcohol
312, Central Alloy Steel 81 and Sterl-
ing Securities ga, the last two selling
close to the years tops.
United Aircraft dropped AZ points
and Studebaker slipped back 3la to Q
new low for the year at 81. Mont
gornery Ward, Byproducts Coke.
Lambert, Simmons ana Internationsl
Telephone fell back points or more
on the FIRST outbreak OF selling and
United States Steel common extended
Its loss to 2 points.
Foreign exchanges opened IRREGULAR,
with sterling cables shade lower al
s4.e5A; - '@