New Britain herald., 1929-11-02
EXCHANGE CLOSED;
 BROKERS CAUTIOUS
Urge Moderation Until Unsettled
 Market Is Adjusted

New York, Nov. 2 (UP) - The stock exchange was closed for trad ing again today. but brokers were on hand to straighten out transac- | tions delayed by the tremendous markets of the past week.
 Curb brokers also were present 1 and brokerage clerks were busy 1 catching up with their back work. Much of this work, it was expect. ed, would have to carry over into next week.
 Meanwhile additional notes of op- | timism were being circulated regard 1 ing the business situation. The tone 1 of brokerage letters and market ob- | servers, however, was cautious. | Believe Worst Over
 The general opinion is that the i market has seen it's worst break, | but many warned that the recovery was too rapid and might draw out | protittaking.
 A typical market letter was that l of Clark Williams X Co.,, sent out l today, While it is our opinion that the very drastic liquidation which 1 has taken place during the week, has l improved the technical position of the market for some time to come and brought prices of many sound securities considerably below their real values as Investments" the let ter said. I've would advise against | purchase of stocks on rallies as after q break so drastic as the one which has occurred this week. a period of nervousness and irreguarity IS to be expected and stocks should be bought on reactions only, with pur- Chases being confined as much as possible to stocks which represent conservative valuations. From this point of view. we continue bullish on the rails, oils and sound utility stocks"
 Hold your good stocks and add to holdings during any periods of un- settlement" says the letter of An dcrson &o Fox. There is little hang ing over the market to shake con- fidence except, perhaps the pace of the present recovery. This is in our own hands. If it advances too fast, we may expect a technical situation that must be corrected"
 Overhanging the market for the opening Monday were two items that were considered especially bullish. The first was the reduction 10 per cent from 6 per cent in the New York redisCount rate, and the sec 1 nri HarliDa n tbop 1 billion dollars in brokerage loans
 Traders Expected Both
 Some were of the opinion that these had been discounted. The street for several days had talked of just such changes, although nc one was bold enough to predict fiat ly that the loan total would shrink @ record amount. Considerable ol the dealings Thursday were inspired by expectation of the loan drop. The rediscount rate was heralded by the drop in London and hence has beer
 spent as a market factor, according , to observers.
 Nevertheless, the continuation O , favorable business statements iron , all sides is generating a return o'
 confidence on such q scale that the
 buying orders are pouring in from all parts of the country.
 Offsetting the buying, it was said would be selling by those who hat bought last week on the break These persons, it was argued, woul. . be apt to play cautiously and wouh take their profits when opportunity offered.
 According to the theory express ! cd by Roger Babson a few day. i ago, bankers who bought stock tt | support the market would be un | loading it when prices advanced. The conclusion therefore. barring J the unforeseen, would be that tn, market Monday would start off wit , q roaring bang on the good new: developing in the period it wd: closed. This buying might be fol lowed by profit-taking by many
 who do not wish to remain in tn, market over the election day holi
 day and then the unloading of sup.
 port stock might set in.
 Observers were of the opinion however, that this selling would no
 get out of hand due to efforts O the vigilance of the banking groui i pledged to stabilize the market.