New Britain herald., 1930-10-06
Blue Monday Hits Stock Exchange As Prices Skid Downward Toward
 Record Low Levels for This Year
RecOveries of Point or Two Fail to Hold as Trading Grows Dull On Upturns Many Shares Down AL most to 1921 Level On Board.

New York, Oct. LP-It was an- other one of those Mondays of deep- dyed blue in Wall street today.
 Share prices skidded downward under only moderately heavy offer ings starting with the stock markets opening gong, and lost most of the recovery from the low levels of last Tuesday. The market was inclined to recover for a time during the morning. and again during the early afternoon, when recoveries of a point or so from the bottom were recorded by some pivotal shares, but trading turned dull on upturns.
 Wide Assortment Drops
 A wide assortment of shares fell to new lows for the year or longer, including several leading rails. Radio touched new low ground close to 25 before rallying, and American Tele- phone sold within a fraction Of the 1880 minimum. U. S. Steel, New York Central, Johns Manville, Air Reduction, and American and For eign> Power lost or more, while shares dropping 4 to more than included Westinghouse Elec- tric, American Can, Dupont, East man, Warrington, American Water Works and Atchison. Allied Chemi- cal tumbled more than 15 points.
 Business reports over the week. end were not reassuring, and hold CTS of stocks showed signs of again giving way to the unreasoning gloom which gripped speculative quarters during most of September. Much of the selling appeared to be for short account but extensive unloading of such shares as American Telephone and American Can indicated that in vestors were growing discouraged.
 Some Advise Buying
 Some of the investment advisory services however, recommended dis criminating purchases of stocks in their weekend letter. There was a decided tendency, nevertheless, to steer clear of attempts at forecasting the immediate future of the market.
 Such investment buying orders as have been appearing have largely been placed under the current levels in the hope of getting better bar gains. One experienced group of investment trusts was understood to have placed several such orders. On the other hand. it was rumored in brokerage circles that a few of the smaller trusts were selling.
 The fact that many of the more popular shares are still selling at earnings ratios we'll above those reached in the 192O-21 bear market still inclined investors toward caution.
 There are still many leading stocks that are selling from 20 to more than 30 times this years esti- mated earnings. Whether stocks are mains moot question. As this years earnings are abnormally low. some present prices may be justified by prospects of improvement next year.
 Near 1921 Levels
 ol lllc WnOle, SlOCkS nave Deen reduced to yield levels rapidly con- parable to those of 1921. Moodys points out that the average yield of all dividend paying stocks on Sep tember 30 was not far from the SOS per cent reached as of November 13, 1929. While the figure 7.91 was substantially less than the 9.92 per cent reached in 1921, it is pointed out that credit conditions are radically different.
 Money was comparatively scarce and bonds of all grades commanded substantially higher return in 1921. Moodys calculates that the present common stock yield Is relatively" as high as it was in 1921.
 Definite developments in the days corporate news were limited Early estimates indicated that the Steel industry might not maintain last weeks rate of operations. President Storey of Atchison stated that low earnings had caused the company to dip into surplus for capital out