Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-13
STOCKS IN RALLY
AFTER EARLY DROP
Market Hardens as Money
Rate Drops to 7-Liquida-
ton Heavy.
BY STANLEY w. PRENOSIL,
Associated Press Financial Editor.

NEW YORK, September 13.-The
stock market was subjected today to
another bombardment of selling, which
carried most OF the active issues to
new low prices on the movement. The
break, which ran from to Is points
IN scores OF issues, was checked around
midday by the lowering of the call
money rate from to z per cent and a
revival of pool activity in a selected
group of public utility, railroad equip
ment and independent steel shares.
Heavy buying of May Department
Stores, which raised it % points to
1925, started heavy accumulation of
other merchandise issues in the last
hour. Hahn Department Stores rose
6A points, r. H. Macy 6, Gimbel
Bros ia and Safeway Stores 5. In
the public utilities, American g. Foreign
Power was strong. touching record
figure of TITS. The closing tone was
strong.
Loan Figures Disquieting.
While Wall Street undoubtedly was
surprised at the increase of $12OOO0,-
600 in Federal Reserve brokers' loans
last week in the face of the sharp
downward readjustment of prices that
had taken place in that period. today's
selling was generally characterized as
a further correction of a top-heavy
speculative position.
The extent of the recent decline in
some Of the leaders presumably had
seriously impaired many margin &C
counts, with the result that stocks
were dumped rather freely during the
morning. The sharp rise in loans was
attributed in some quarters to the call
ing for payment of stock subscriptions
to new issues and construed in others
as an indication that heavy distribution
had taken place and that stocks had
passed from strong to weak hands
Copper shares turned soft, Anaconda
dropping 5 points. Greene Cananea Az
and several others / to 3 points, but
they rallied with the rest of the list
in the early afternoon.
Opening Is Irregular.
Price movements were extremely ir-
regular at the opening. American
Machine & Foundry opened points
higher, Westinghouse Electric 3. Ameri-
can & Foreign power "a, Vanadium
Steel l Is and Johns-Manville l. Radio
opened with block of 100000 shares at
109&. up IA. Simmons Co. dropped
3a4 points, Allied Chemical and
American Can l y. United States Steel
common yielded fractionally on the first
sale.
The Unexpectedly large increase of
Sl20 10000 in Federal Reserve brokers
| loans to another new high record ap-
| parently was offset as a market factor
by the retention of the per cent re-
discount rate by the local bank, setting
at rest rumors that it would be in
creased to per cent, and by the i'm
| provement in the Federal Reserve ratios.
The extreme sensitiveness of the market
to unfavorable rumors was interpreted
i by conservative traders as an indication
of weakened technical position, and
| some further selling developed from this
source. The apparent inability of
copper producers to maintain the price
| of the red metal above 18 cents pound
| also encouraged further liquidation of
| the copper stocks, Greene Cananea
breaking Az points and Kennecott and
| few others yielding point or so.
Pacific Lighting, International Tele-
phone and National Cash Register
yielded 2 to points in the early selling,
Steel and several others dropped point
or so.
Market Gains Strength.
The market generally gathered
| strength as trading progressed. Com
mercial Solvents jumped 10A points to
| a new high at $780, Columbia Gas and
J 0OCC1 dloO AIOfCu w 1lCW kASII
ground. Vanadium Steel quickly ex-
/ tended its gain to points and Radio
! to 212.
Railroad equipment shares were in
| fairly brisk demand. Pullman quickly
ran up ga points, American Car &
(! Foundry ga and General Railway Sig
/ nal l. United States Steel common
/ quickly recovered its early loss and
moved point above last nights final
| quotation.
Foreign exchanges opened steady.
with sterling cables unchanged at
S4.84 11-16.