Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-06
STOCKS IN RALLY
AFTER SHARP DROP
Expected Federal Reserve
Statement on Credit Situa-
ton Causes Liquidation.
BY GEORGE T. HUGHES.

Special DlSpatch TO Inc star.
NEW YORK, February 6.-News that
the Federal Reserve Board was to give
out a statement on credit conditions
after the close threw today's stock mar
ket into a sharp reaction.
In the early hours of trading selling
was heavy, and all classes of stocks lost
anywhere from to more points. In
the late afternoon. however, money
dropped to 6 per cent, and the list
rallied.
On the recovery the copper stocks
were prominent, notably Andes and An
aconda. United States Steel rallied
with the rest. A few issues stood out
against the trend. one of them Inter-
national Combustion. General Motors
led the automobile stocks in the late
trading on revival of the report that
Mr. Raskob was to return to his old
position with the board.
Money Situation.
There was nothing in the immediate
money situation to cause alarm. Today's
renewal rate for call loans was Z per
cent unchanged, and the outlook was
for a lower, rather than higher,
charge.
For time the copper stocks held out
against the trend. Anaconda, which
had Unexpectedly gone on 81 dividend
basis yesterday, opened on block of
$500 shares at 1870, the previous high,
subsequently making new high.
Greene Cananea was up nearly points
in the first hour, while Kennecott sold
fractionally within its best of record
and Andes, Cerro de Pasco and others
of the group were actively bought Later
on all these stocks came down from
their highs, in sympathy with the reac-
ton in the rest of the list.
The outlook for the copper metal re-
mains bright. The price is expected to
go higher, and there are hopes for
larger distributions to stockholders by
several of the producing companies, but
these considerations were of little avail
in the situation that existed today.
The Rock Island directors announced
81 dividend basis for the common
stock today against the $6 rate pre-
viously paid Rock Island was up cou-
pie of points on the news, but there
was no corresponding strength in the
other railroad stocks. In this respect
the market presented striking con-
trast to its action yesterday, when the
Anaconda dividend was advanced
Baltimore & Ohio at 126 was off 5
points from its high of earlier in the
week New York Central, around 1913,
was down points from its top of a few
days ago.
There was no real weakness in the
rails. and the selling was doubtless more
for the purpose of protecting other COM
nlitments than for any other reason.
Steels Reactionary.
Steel stocks were reactionary from
the start. United States Steel, below
1872, made new low on the current de-
cline. Bethlehem Steel resisted better,
but gave way in the later dealings. Spe-
cialties, such as Johns anville, sold
off sharply, this one stock being down
from 6 to points at one stage. The
utilities were lower also.
A feature of outstanding strength
was United States Realty, responding to
the announcement that stock instead of
bond financing was to be employed in
the building construction industry. In
the first hour the price ran up more
than 10 points from the preceding close.