The Washington times., 1930-06-13
TARIFF ACTION
IS WAITED
BY MART
Senate Vote Today viii Bring
Weakness in Stocks to Front;
Passage Of Bill Is Seen
BY THE SPECTATOR

II was q bitter battle between
the bulls and bears in the stock
! market yesterday with prices
movin:: in wide swings in both
directions. There was a series oi
setbacks, and rallies throughout
the day, eliminating in q SHARP
recovery In the afternoon.
Everything would have been
fine at the close, had not Sen
ator Reed Of Pennsylvania, CONS
out with his statement in favor
Of the tariff bill. That announce
} ment touched off q new selling
furry, which cut 50 to So off
the prices Of favorite trading IS
sues and cut down the averages
for the day.
The strangest feature Of The
market was the fact that prac-
tically all leading issues >estab-
lished losses on tne day, whereas
the numerous gains that were
scattered through the list we've
made by stocks that ordinarily
are inactive or subject to pool
movements, which indicates that
the trading market is to cor
tinue.
Unless you are wellinformed,
can sit beside the ticKer and buy
or sell at a moments notice, this
is no market for you. On the
other hand, stocks look cheap at
current prices, and might we'll be
bought for long-pull holding.
Som. well-informed Wail Street
OPERATORS, however. believe we
viii see lower prices before the
market begins to discount the
expected autumn business i'm
provement.
The Tariff Bill
The Senate vote on the tariff
bill is due at o'clock this after
noon. In Wall Street yesterday
it was predicted that if Senator
Reed declared in favor Of the bill,
the market would break before the
close. The market did sell off con-
Siderably. Iventure to predict that
with passage of the measure by
the Senate in view, the market
will be weak today. would watch
my step carefully. II you by on a
recession and a rally occurs. Sell
your stocks, "chiseling" or scalp
ing" profits is a popular pastime
In these days.
Most close observers of the mar
ket' felt that yesterdays selling
was real liquidation rather than
speculative short selling.
The Copper Situation
Those closest to the copper COM
panies appeared to be little wor-
ried by the reduction Of metal
price to 1874 cents. Reports that
q further cut to 1917 cents would
be made seemed to worry them
less. At any rate, it was reported
on good authority that NeWmont
Mining Corporation at. the direc-
tors meeting Tuesday, will declare
the regular quarterly dividend of
81 a share. Earnings so far this
year "have been nearly enough to
cover the annual 81 dividend re
quirements, which is an encourag-
ing commentary, considering that
the concern is practically a hold
ing company for copper shares.
Assistant Attorney General
Washburn, In charge Of stock
stock fraud Investigations, denied
yesterday that his office was max
ing any attempt to run down bears
who have been spreading false I'll.
Hnors about listed stocks.
Easy Money Rates
Reduction of the call money
rate to 2H per cent. the lowest
level since last. March. was sIle of
the really encouraging develop.
ments yesterday. although it had
little effect on the market for the
time being. Easing of the rate at
q time when income tax payments
are near at hand would seem to
indicate an. unusual plethora Of
funds in the open market and
brings renewed hope Of q reduc-
tion in the rediScount rate, which
would have a favorable effect on
business.
One of the stocks which stood
out in yesterdays market was
Fairbanks Morse, which gained 2
points on the day. The company
Is IN splendid financial position,
and ! am assured that it will con-
tinue to pay dividends at the cur
rent annual rate of SO a share.
General Motors Firm
1t was remarked in rany quar-.
terS yesterday that General
Motors Is the only member of the
automobile group that has failed
to suffer drastic setback during
the decline of the last few days,
TO me, 1t seems, there is little
cause for wonder l.. This. for. as
I announced exclusively a week
or more ago. the leading banking
house Is bullish on the. stock, and
members Of that firm have spread