Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-03

A decrease Of 81 ,0O0, 600, 900 In brokers'
loans satisfied the Federal Reserve
Board and the New York Reserve Bank
was permitted to reduce its discount
rate from per cent to per cent after
the Bank Of England had led the way,
the latter action being a gesture of con-
fidence In the solidity Of the American
business situation.
Drastic, smashing liquidation in the
New York and less serious in Washing
ton security markets is over. This does
not mean that the market has turned
from the bear to the bull side for long
pull, but that the worst is over and for
some time to come we may look for q
two-sided trading affair, with profit-
taking whenever opportunity offers.
After. the first bad day In New York,
Mitchell and his associates in the sup
porting movement IN Wall Street did
not agree to stand under the market in
the accumulation of stocks, but rather
that they would give support to the
list when absolutely necessary. In order
to be able to do this it was but nat
ural that a rally would place the bank
ers on the selling side in order to take
their profits
There have always been q goodly
number of professional bears on Wall
Street. OF late, however, they have
been Quiescent during the three years
OF higher prices. but with the knowledge
that the support extended would be but
temporary they reappeared and pounded
prices down until the support had to
come solidly to prevent more serious
crisis than was faced on the earlier days
Of last week.
All Helped to Check Panic.
1t took long pull, strong pull and
pun all together to put crimp in the
bears and q real rally in the stock list
The Rockefellers. father and son; bank
erS, Sears, Roebuck & Co., insult In Chi
cago and million big and little fellows
rushed in with hundreds and thousands
and millions Of dollars. There was
enough to make even panic Shiver
and stop.
Two big corporations backed their
own shares, with the urge to employees
to hold tight to their stocks and the
needed capital to carry through all
trouble would be furnished them to
make good on their trades.
Wiped Out.
There are thousands of small traders,
men and women, who have been wiped
out by the successive declines. One of
Washington's largest brokerage con-
Germs announced yesterday that all ac-
counts had responded to margin calls or
sold out and taken their losses but
three, but one Of these was long 1900
shares.
Brokers themselves stood up to the
rack IN splendid order Their custom
ers did the same as far as possible.
The bargain hunters are scanning the
lists looking for safe spots where they
can get some action and returns quick
ly. Bankers and brokers will advise
caution and the eschewing Of bridge
table tips.
Conditions in Washington.
1t is probable that some of the rather
severe hQuidations in our local market
were due to the necessities of those hav-
ing Wall Street trades to protect Cap,
ital Traction reached its lowest record
In Its long history, where IL found some
support from investors who recognize
the fact that the street cars will be
the chief dependence of people in city
lie Tor years To come and that the an
tagontsm aroused by the plea of the
companies for higher fares will be with
out effect in court in case the matter
Is taken to court for adjudication.
Traction has been bought. however,
chiefly on the prospects of not less
than 5 per cent dividend, beginning
with the January distribution. The d.
rectors have indicated their intent to
cut the rate, but If not below 5 per
cent prices should, and will in all prob
ability, recover.
Lanston and Mergenthaler, typeset-
tiers, both dropped of a little, but with
out many sales of the former. Potomac
Electric preferred shaded materially and
practically everything on the list de-
clined more or less severely. Not all the
bank stocks were shaded, but the usual
active leaders were generally lower.
American Security & Trust dropped
back 80 points, but regained 10 to is
points on the last days trade. But
there was no pressure to Hquidate in
the group.
As to MergenthaIcr.
Directors of Mergenthaler Linotype
Go. meet In the immediate future to
take action on the dividend for the
next quarter II is understood that the
declaration will be on the basis of 6 per
cent as permanent rate In place of
the usual IL per cent and an extra,
put IL Is the intention to continue the
extras as an additional distribution.
Earnings FOR the fiscal year will show
between and 8 per cent, q material
increase over those of last wear.
The fiscal position Of the corporation
is o matter OF genuine Concentration
to alb concerned-no bills payable, no
bank loans, surplus equal to capital.
no good will, no bonds and fine up-to-
date plant. IN the New York market
before the last break the stock of such
corporation would have sold MANY
points higher than the 100 to l02 of
the past four days.
Although American domestic an,hi-
ton has led to the relinquishment of