Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-07
|STOCK PRICES DROP
DESPITE SUPPORT
Market Says to Lower Lev
: els, With Leaders Losing
8 to 4 Points.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.

NEW YORK, August THE stock
market was left to the bears today,
while bulls made merry in the COM
modify martS.
There was some liquidation Of stocks
by investors who feared the crop Crisis
NAV have postponed business recovery,
but the major portion Of selling orders
originated with floor traders. Profess
SIGNALS were more aggressive on the
short side than Of late, however, ana q
long list Of important stocks sold on
1roro to 7 points or more, as the
volume of trading increased sunstan-
TALLY.
Unfavorable News.
The DAVIS quota of corporate and IN
dustrial news was not OF character 10
hamper the bears. Passing OF tne Gooo-
rich dividend, payment Of the National
M r,ilv stores disbursement in stock in
stead of cash and expectations OF re-
duction of the Warner Bros. cash pay,
y,ent late in the day were not help1ul
to the cause Of higher prices.
bright SPOT In the gloom was an
axnression of opinion by President Shu-
noaker of the r. G. A-Victor Co, that
the working people Of the country have
SUBSTANTIAL savings and only need re-
assurance as to employment 10 start
spending normally again. we are go,
ing to run our plant to capacity until
it is proven that we are wrong ne
said. 3s,a A.,
o,,st bulletin the financial community
found some comforting reading. Mem
her banks were said to be indebted 10
the Reserve System to only ABOUT one
twelfth their aggregate reserve balances,
and to be entering the period when
the demand for currency increased
about $l50,000,0 600 in an exceptionally
easy position. Wall Street bankers un-
derstand the New York Reserve BANK
Is prepared to purchase Government
securities to such extent as Will onset
recent and further losses of gold.
Call money renewed again at 25
per cent but the undertone was easier,
giving rise to the expectation that the
turn of the month firmness was passing.
Cotton joined the upswing in COM
modities, while the advance IN grains
was slowed UP by reports of local
showers in the Midwest. Estimates
from Washington that crop damage
may amount to 1000, 900 900 could not
be interpreted by Wall Street as hasten
ing business recovery. It was recalled,
however, that the severe stock market
panic Of 1901 was followed by crop
failure, but that stocks recovered
swiftly within a few months. The
present situation, however. is in many
respects dissimilar. If the depression
in commodity prices has been definitely
ended, nevertheless. bankers believe the
longer term implications are decidedly
favorable.
Decline Il Broad.
such stocks as U. 8. Steel, Radio,
General Electric and General Motors
were well supported. The market was
inclined to rally ct times for q period
during the middle Of the morning and
again in the early afternoon. AS a
group. the utilities were hardest hit,
but the decline was broad.
Eastman and Allied Chemical drop
ped about 7 points each. while Case
and American Water Works lost or
more. Isgsues losing about or in
Guided North American, American
Power 81 Light, Air Reduction. Ameri-
can Tobacco B, Atchison. American
Can. Consolidated Cas- Corn Products,
international Harvester, Warner Bros,
Allis Chalmers. Erie, Rock Island,
Byers and Republic Steel.