Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-30
RECORDS SMASHED
ON D. c. EXCHANGE
Today's Heavy Selling Causes
Many Price ReCeSsions in
Local Securities.
BY EDWARD c. STONE.

the last few days panic selling in New
York being the cause of most OF the
selling here.
Local holders of sound stocks were
in some instances, obliged to let them
go TO protect investments made In is
sues on the New York exchange, and
sellers found good bids lacking just at
this time.
There was a heavy turnover in the
bond division, sales for the session to-
falling nearly $4,000 mostly in $1,000
and $4,000 denominations. As shown
in the complete report of sales elsewhere
in The Stars financial section, there
were a number of recessions from re-
cent price levels.
Heavy Trading in Stocks.
About 1000 shares of the best stocks
on the local board changed hands dur
ing the trading. The heaviest sales were
in Mergenthaler Linotype, in which one
l00-share block and another 110-share
block changed hands. Mergenthaler
opened at 101 and closed at 100. Last
Saturday it sold at 104
Bank stocks came out in many small
sales. The opening sale was in Com
mercial National at 258, off about 2
points. Liberty National came out at
225.
Riggs National opened at 545, sole
at 547 and closed at $50. after selling
yesterday at $50 and $40. American
Security & Trust sold at 430 after a
single share had changed hands at 449.
Twenty shares of Union Trust sold
at 315, and 20 of Security Savings g.
Commercial at 500.
In the miscellaneous list Lanston sold
at 100 and 118, Peoples Drug Stores
preferred was down to 100, Washington
Railway & Electric preferred sold at
"a and 93I and Capital Traction at IS
and II.
The market remained open until las
nm. an unheard of session compared
with the average days business, which
is wound up around 1890. Members
expressed the opinion that improvement
in New York would be reflected in
stronger market here tomorrow.
Stock Selling Opposed Here.
"Selling sound standard stocks today
is like taking a dollar onto the floor OF
the New York Stock Exchange and ask
ing the first person you meet to give you
rs cents for it."
That is the way one local broker
sized up the situation today, just be-
fore the market opened. The opinion
in local broker houses early today was
tn the effect that the crisis In the New
York panic was reached and passed
yesterday.
At the opening today, better buying
appeared evident and discouraged loca!
SPECTATORS and investors took renewed
courage. More margin selling was EVIL
dent. however. and it was hectic day
as hundreds stood in the boardrcomS
and followed the irregular quotations.
Local broker houses were even more
TANNED with customers than yesterday,
the bad weather having the effect OF
keeping people from watching to see
whether their money was gone or might
be salvaging something in the wreck:
Customers men were advising against
the sale of stocks at or near the bot
tom of panic and said they considered
dividend paying stocks purchase.
Bankers Reduce Margins on Loans.
washington bankers we're intensely
interested in reports from New YORK
that a material step had been taken by
the leading New York banks to relieve
the stock market tension by easing mar
ginal requirements on their street loans
to customers In most cases they agreed
not to require more than Is per cent
margin on closing quotations.
Explanation of this action was con-
tanned in two statements, one from j. P.
Morgan & Co. listing some OF the banks
which had agreed on this plan, and the
other from high banking quarters iden-
titled with the group engaged IN stabll-
ling the stock market, reaSsurlng the
financial community regarding the
money situation.
'There is no money problem involved
In the present situation" the announce
ment explained. There is plenty OF
money, and it will be loaned freely"
The statement continued:
LAS indicating that bankers are feel
ing that present price levels are safe
it may be said authoritat1vely that GER
tain of the large banks in the Wall
Street district revised margin require
mentS as Of last night making re-
quirement of 25 per cent margin on
closing quotations. instead Of the prev
ious practice of 40 per cent margin or
of setting arbitrary prices from which
somewhat lower margin was required.
ut is understood also that many
Stock Exchange houses have also fol-
lowed the change"
New York Exchange Criticized.
Some local bankers are severely
criticizing the New York Stock Ex-
change for not closing when business
became completely demoralized.
The claim is made that when the
ticker got three and four hours behind
the market the exchange was virtually
closed 1t simply was not functioning
and gave buyers and sellers no idea
how they stood.
The objection to- closing the market
is that it stops free market for stocks
and has bad effect on sentiment.
Bankers claim that the effect on se1ti-
ment WoDld have been nothing in COM
pa,%ES|With stopping market in the
MIST of panic, thereby giving thou-
y d. and thousands of people holding
sacks a chance to calm down and per-
mans the opportunity to save part OF
Their money. '.
Had the exchange closed for two or
three days or a week. some of the
frenzied selling might have beer
checked, in the opinion of several loca
financiers. They are glad to see thu
speculative mania checked. but not with
such heavy losses to people outside O.
Wall Street.
Earnings Show Marked Increases.
One of the first preliminary conlpla
tons of published corporation net earn
ings for nine months this year appeared
TODAY in the bulletin of Ernst 81 Ernst
accountants, and showed substantial In
creases over earnings for nine month
of last year in industrials, utilities ant
railroads.
For 1853 industrials, aggregate ne
earnings totaling 1898, 621 ,805 were 25.3
per cent greater than in nine month
of last year For Is utilities, earning
were 1890 per cent greater. For Z
railroads, earnings were 14.77 per cen
greater.
OF the 1853 industrials included in thi
compilation 143 reported increased earn
ings and 20 reported decreased earn
fngs nine months of this year as com
pared with last year.
These percentages are based on earn
ings reports published to date by thos
corporations which are included in
key list whose earnings figures for min