Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-09
Panicky Spectators Unload
Shares on Exchange and
Values Wilt.
RALLIES SHORT LIVED
AND CLOSING is WEAK
Leaders Of Recent Upswings Hit
Hard in Slump-Some "Stop-
Loss" Orders Refused.

oS Ihc ASSOCihteo HfeSS.
NEW YORK, August "a wide omen
break in prices. which carried scores of
issues down SIS to nearly $35 a share.
was Wall Streets response to the un.
expected increase from to 6 Der cent
In the New York Federal Reserve re-
discount rate. The market opened
weak. rallied briskly before the end
OF the nrst hour, turned heavy again
around midday, rebounded in the early
afternoon and then succumbed to a re-
newal Of selling pressure in the late
Trading, with final quotations in manv
cases around the lowest of the day.
Total sales crossed the 5000, ,OOO-share
marx Tor the first time since last March.
commercial Solvents dropped s33 5o
q snare, Auburn Auto, S26. so: General
Electric, $50; International Silver
:to;oo; American Telephone, SIS, and
Atcnlson, Westinghouse Electric. Amer
lcan ana Forelgn Power, Allied Chemical.
american Can, North American and
american Power &, Light all recorded
extreme losses of $40 a share or more
United States Steel, common, which
mas been setting new high records al
most oally Tor the past week or more.
lel more than 81 share and Showed
little recovery from the days low.
industrial Rayon was one Of the few
STOCKS to move against the general
downward trend, advancing 81 a share
to S98.75.
Todays decline, which was one Of
tne worst ever experienced in Wall
Street, wiped out more than a Billion
dollars in quoted values. Similar de-
cllnes took place in all the other lead
ing securities markets in the country.
Spectators Are Panicky.
As happens in all major stock mar
ket declines, thousands of panicky In
vestors and spectators threw over their
holdings "at the market" at the open->
ing, taking terrific losses because of the
overnight withdrawal of bids by pools
and other market sponsors. Wealthy
individuals and professional traders
bought stocks FOR turn" on the open
ing decline, with the result that q
sharp rally was quickly under way as
been completed.
United States Steel common Westing-
house Electric, General Motors, General
Electric, American Telephone, Packard
and scores Of other leading industrialS
| and rails quickly rallied l to 6 points
| from their opening levels.
All leading brokerage houses instruct
| ed their employees to report for work an
hour or more earlier than usual this
| morning. with the result that the streets
| OF the financial district were crowded
| with hurrying workers as early as
o'clock. Downtown telephone exchanges
were swamped with calls by customers
| placing orders and of brokers calling
for instructions and demanding margin
| on weakened speculative accounts.
Refuse stop Loss" Orders.
So great was the rush to sell that
many specialists were compelled to re-
| fuse to accept stop loss" orders, par
| ticularly on odd lots. In the case of
highly speculative issues opening orders
were punched" and executed in one
| block, several OF these running from
5000 to $4,000 shares.
Practically the entire Curb Exchange
swept downward, widest breaks occur
| ring in the recent leaders in the utility
group. Electric Investors opened at
| 25412. of at 2514 points. and Electric
Bond & Share at 1925, of 8. Middle
West Utilities, one of the stocks that
| dropped 26: American Light 6S Trac-
ton 9l2, Central States Electric con-
vertible preferred and American Su-
perpower SIS.
The rise in the rediscount rate CO.
| incided with an increase in brokers'
loans by Federal Reserve banks Of $780,
000, 900 to a new high record for all
time at s6.o2O,0 oo,oO0. OF this total,
| banks loaned for their own account
| 1,089, ,000, 900; for the account of out
| of-town banks, S1,789, 900 900, and for
the account of others, which includes
large corporations, individuals and for
eign financial institutions, $3,l43,-
000, 900.
Within the past year. the loans for
| the account of others have increased
| (Continued on Page 2. Column -