Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-27
DECLINE IN STOCK
PRICES CONTINUES
Market Beaten Down in Flood
of Selling After Break
in Wheat.
BY STANLEY w. PRENOSIL,
Associated Press Financial Editor.

NEW YORK, May GA break in
wheat futures below ST bushel 70 the
lowest level in Is years, coupled with
the uncertainty regarding credit con-
ditions. brought flood of selling orders
into the stock market today and prices
of many active issues broke 2 to -
points. Scores of stocks, including
General Motors. Montgomery Ward.
Canadian Pacific, Northern Pacific and
the st. Paul issues. dropped TO new low
levels for the year.
Stocks were freely supplied through
the final hour, driving the favorite
shares to lower levels. General Elec-
trio sold at 260, where it was off ID
points. Radio got down to IS, and
Anaconda Copper to 100 Johns Man
vile broke IL points. while Borg War
ner. F. G. Shattuck, Baldwin Loco
motive and Foundation Co. all sold off
from to 10 points. The closing was
weak.
Call money renewed unchanged at 6
per cent. but furry to 10. or II was
predicted by Wednesday because Of the
heaVy month end and holiday demands
Tor funds. Time money rates held firm,
the quotations, except for q few weeks
III the defiation crisis of 1920, being
around the highest levels since 1907.
Fears that the low wheat prices
would impair the purchasing power of
the Northwest inspired heavy selling of
the western railroad and mail order
shares. The days business news. how
ever, continued favorable, including a
series or excellent April earnings state
menus by some of the leading carriers
OF the country.
Heaviness at Start.
The line of least resistance at the
opening was still downward. A few of
the popular lndustrials. Including Radio
I>and Columbia Gas. moved against the
general trend. but the initial gains were
fractional. Auburn Auto dropped 5Ib
points, Coty 112 and Sears Roebuck 3.
Inc uncertainty regarding Federal
Reserve rediscount rates and the pros
pect OF another call money Squeeze"
this week had a depressing influence on
speculative sentiment, and prices con-
tlnued to drift downward through the
early trading.
Commonwealth Power ran I'D 2L
points to a new high at ITO. but quickly
lost most of its gain. American Can
and American Water Works also
forfeited early gains of 2 and 10
points, respectively.
United Aircraft dropped 4 points.
General Electric and Wilcox Rich A 8,
Stewart-Warner 2 and Borg Warner.
Hupp. Goodyear Rubber. Westinghouse
Electric United States Industrial Alcohol
and about dozen others sagged point
or more
New low records for the year we're
established in the early trading by
| International Telephone new, Magma
Copper, Andes Copper, CRANKY Copper,
Anaconda Wire & Gable, st. Paul COM
mon and preferred, holster Radio and
Brockway Motors.
Foreign exchanges opened steady.
| with Sterling cables slightly firmer
at $4.85.
Many Traders Sell Out.
Many holders of stocks became dis
heartened at the consistent heaviness
of market leaders and sold out their
holdings when their margins became
impaired. rather than provide new
funds. United States Steel lost nearly
points, and United Aircraft and
Wilcox-Rich B, 5 each. Atchison was
down to 205l2, loss of more than 3
points. and American Rolling Mill
touched 1922, the lowest since it was
| listed. Call money renewed unchanged
at per cent