Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-27
Standard Stocks Get Support
Today as Money Con-
ditions Ease.
PROFITS QUICKLY VANISH
IN DELUGE OF SELLING
Small Investors Are the Heaviest
Losers, Despite Late Rally
Yesterday.

NEW YORK. March 27--WaIl Street
saw signs today that the worst was
over in the acute credit pinch and after
period Of uncertainty caused by call
money renewal rate Of Is per cent, stock
prices headed upward along a broad
front. The most cheering development
was a reduction of Is of / per cent in
bankers acceptance rates, the first de-
cline after several months of successive
increases. The high call money re-
newal rate eventually brought a liberal
supply of funds and fears that it would
be advanced faded
The National City Bank, which sup
piled the money market with funds yes
terday when the call money rate
threatened to 90 above 20 per cent
today announced it would continue its
policy of lending assistance when neces-
Sary. Charles E. Mitchell, president of
the bank and a director of the New
York Federal Reserve Bank, stated that
the bank was offering an additional
S25. .000.0 900, to be loaned as follows:
S5.000,000 each at Is, II, 18, 19 and 20
per cent.
No Concerted Action.
1t was pointed out that there had
been no concerted action among banks
to supply the money market with funds
nor any suggestions or intimations that
this be done by the Federal Reserve
Board, which inaugurated the credit
restriction policy against speculative
borrowings. Other banks were expect
ed, however, to follow the. lead of the
National City in preventing any grave
Stringency in the market.
The recent decline apparently has
mad a SOLDERING effect on speculative
sentiment, and trading showed a mark
ed reduction in volume today. This was
due, in part. to the fact that thousands
of small spectators had exhausted
their margins and were not in q posi-
ton to participate, and also to the dis
inclination of others to speculate In a
period OF credit uncertainty.
The ticker, which fell more than an
hour behind the market yesterday aft
ernoon. was abreast of the market at
1:30 pm. Total sales in the first two
hours were only 2.120,900 shares. as
against 2,S3s,40 in the same period
yesterday.
Banks called about $15,ooo,ooo in
loans this morning, largely for the ac-
count of Chicago institutions, and
money was so scarce, even at the high
renewal rate. that predictions were
again made 1t would go higher, although
few bankers or brokers looked for it to
equal or exceed the 20 per cent rate
yesterday.
Heavy Fund Withdrawals.
Heavy Withdrawals of funds from the
call money market by investment trusts
vas one of the reasons advanced for the
credit stringency. One recently organ
lied Chicago trust is reported to have
withdrawn the proceeds of a S60,000,-
900 stock issues temporarily invested in
the call market, either at the instance
OF Chicago bankers. who were faced
with an acute credit situation in that
city. or to enable it to purchase Sc
curities on the recent decline in prices.
Early gains of So to Sc share were
not entirely cancelled by the midday
selling movement. and many of the ac-
tive issues held above yesterdays final
quotations. New weak spots dropped out,
however, as bear" traders hammered
supposedly vulnerable issues. Federal
Mining and Smelling. which has not
appeared on the tape for several days,
sold S35 share below the previous
transaction. RoSSia Insurance dropped
81 below last nights close, Packard
Motors SIS, National Cash Register 81 and
Anaconda, Radio-Keith-O -Orpheum. Kol-
ster Radio. ChrySler and Montgomery
Ward sold down SO or more American
Can. U. S. Steel common. Montgomery
Ward, Anaconda Copper and Johns
Manville sold down 50 to So a share
The stock ticker was only 6 minutes
late at noon.
Bull Party Encouraged.
The task of rebuilding the specula-
tive structure, which had been shaken
to its foundations by one of the most
drastic selling movements in the history
OF the exchange. proceeded with caution
because there was no assurance that
the credit stringency. which precipitat-
ed the stock market crisis. had been
definitely passed.
Bull" forces derived considerable en-
couragement. however, from the fact
that the National City Bank and other
large New York institutions had placed
large sums Of money into the market
late yesterday when the call money
rate had jumped to 20 per cent. the
highest level in nine years. and was
scarce even at that high figure.
The, belief was widely expressed in
brokerage circles that the reaction had
been sufficiently drastic to forestall the
possibilities of an immediate increase
in Federal Reserve rediscount rates.
Directors of the New York Federal
Reserve Bank meet after the close of
the market tomorrow. Wall Street gen.
orally expects a siZeable reduction in
brokers' loans this week. the estimates
ranging all the way from $150000, 900
to $400.000.000.
The market opened fairly steady this
morning. Floor brokers. who were on