Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-25
REACTION IN STOCK
MARKET IS HALTED
Rally in Last Hour Stops
Decline, With Closing
Tone Steady.
BY STANLEY w. PRENOSIL.
Associated Press Financial Editor.


NEW YORK, September 25.-The re-
action in stock prices continued today
with most of the leaders touching new
lows on the current decline. High
priced specialties and Public Utilities
broke five to nearly 20 points. with
scores of other issues down to 4 points
below yesterdays final quotations. Oper-
atorS for the advance made several ef-
forts to bring about a general rally,
but they were forced to abandon their
plans when large offerings of popular
stocks poured into the market.
Call money renewed at per cent,
advanced to 9 and thence to 10, to
the accompaniment of heavy calling
OF loans. The Stringency was believed
tic be due, in part, to the withdrawal
OF foreign balances in anticipation of
an increase from 51a to 61a per cent
in the Bank of England discount rate
tomorrow. Time money ruled firm at
9 to ga per cent.
Supporting orders and short cover
ing stopped the decline in the last hour.
United States Steel rallied more than
5 points from its low, and American e.
Foreign Power regained 8. Many other
active issues recovered 3 to 6 points of
their earlier losses. Houston Oil showed
exceptional strength, touching 90. or
7l2 points above the previous close. The
close was steady.
See Market Correction.
While Wall Street found several pegs
on which to hang the decline, such as
the tight credit situation, the falling off
in automobile output, the recession in
steel mill activity and prospects of a
higher London bank rate, many expert
enced observers held to the opinion that
the decline represented a belated cor
rection Of top-heavy speculative posi-
ton.
While most margin accounts were in
strong condition at the peak of the
advance about three weeks ago. the
recent decline, which has carried several
of the leading stocks down 25 to rs
points below the years high level, has
impaired these accounts, and has re-
suited in some forced liquidation.
Withdrawal of pool and banking sup
port has resulted in very thin market
for many high-priced issues, with the
result that offerings lat the market"
have resulted in some rather precipi-
touS declines. United States Steel COM
mon, which sold as high as 24l34 yes
terday and established a new high of
26l34 earlier in the month sold down
more than points below last nights
close to 226i2 before it encountered
C11cClIfc UuylIlS support.
other steels reacted in sympathy. The
Iron Age Review pointed out that. "eVi-
dences of price weakness have accu-
mulated as steel production has de-
clined, but again emphasizes the strong
railroad demand"
Commercial solvents, which touched
700 only few days ago. broke nearly
20 points to 62Ol2. Johns Manville
dropped ID points, Westinghouse Elec-
o.
l0l2 and Air Reduction 1923.
Opening IrreguIarly Higher.
Prices moved irregularly higher at
the opening. Columbia Gas opened
with a block of 5000 shares at 134I2,
up 3l2, and Radio showed an opening
gain of 2l2 points. Initial gains Of
point or so were recorded by Public
Service of New Jersey, Pacific Lighting,
North American, Montgomery Ward
United States Steel common and Union
Carbide. Atchison, Westinghouse Elec
trio and American Rolling Mills de-
cllned point or so.
Failure of a London brokerage firm
and cabled reports that the London
bank rate would be increased on Thurs
day. coupled with the weak technical
condition disclosed in yesterdays late
selling, caused widespread uneasiness
particularly on the part of traders who
have been trying to catch the turn"
for the past two weeks. AS usual, in
times of sharply declining markets.
Wall Street also began to hear runors
of individual operators in trouble, but
these lacked confirmation.
Two favorable trade developments
were announced overnight, the sharp
increase in freight car loadings in the
first week of September and the drop of
more than 10000 barrels in the daily
average of crude oil production report
ted by the American Petroleum Insti-
tute Wall Street also heard reports OF
special dividend and merger develop
ments this week.
Other Losses.
Otis Elevator dropped points, Corn
Products 2i2, and Johns Manville, At
Gibson and National Dairy Products
yielded points or more in the first
outburst of selling. Declines of a point
or more were registered by Bethlehem
Steel. Anaconda, Commercial Credit,
American Tobacco B and Southern Pa
cific.
Renewed weakness cropped out in
the aviation group. with Bendix and
Curtiss- Wright sinking to new low
levels for the year.
There were few independent strong
spots. Simmons Co. quickly ran up Az
points and Columbia Gas extended its
gain to So.