The Washington times., 1930-11-14
Loans

Loans
Wall Street was amazed by the
$219, ,0O0, 900 drop in brokers' loans
for the week, bringing the total
down to $2,235 ,000, 900, or the
lowest since publication of figures
began in 1926. Everyone, of course,
knew that a lot of liquidation
was going on, but few expected
much over a 500, ,00O. 900 decrease,
It is interesting to note that
the biggest drop was shown in
loans on securities in New York,
and that borrowing of non-brok-
ers was up $19 900 600. The former
would indicate liquidation of ex-
tended positions by big interests
since the public participation in
the market has been almost nil
for months. The latter is evi-
dence of steady investment alb
sorption. Buyers getting their
loans direct from banks.
Lighter demand for stocks at
the close yesterday bore our re-
ports that the short interest had
been severely depleted in the
rally of the last two days.
understand that the big bears
covered large lines on Tuesday,
hammering American Telephone
to get out stock elsewhere. De-
rnand for stocks gives a false
picture of the short position any,
way, for a lot of it for some
time has been selling against the
strong box.
The. COppers
The most bulliSh thing about
the copper situation is that pro
ducers are getting together on
cutting production all over the
world. This, I understand, has
made banking interests more
kindly inclined toward the gen.
eral situation for copper was re-
garded as a particularly sore
spot. Copper seems headed for
at least IL cents a pound where
1t will be pegged, so rumor has
it. Yet it must not be overlooked
that even low-cost producers like
Kennecott and Anaconda will
have some trouble in earning
their dividends ON 11-cent copper.
American Smelling is in a diff
ferent position because Of its
lead activities.
Incidentally buying in the cop
pers the last two days has been
pretty much speculative. Earn
ings for the balance of this year
aren't going to be so "hot." This
is exemplified by international
Nickel, which report 10l2 cents
for the third quarter, or 60R
cents for the nine months
against 81 dividend. Yet foreign
interests are still bullish on
nickel for the long pull and have
been buying the stock steadily.
Sinclair
Failure of the Sinclair-P Prairie
deal to go through did not sur
prise those who had followed
the market in the last month.
Decline in the stocks of each in
itself represented a stumbling
block. Nor does it seem likely
that the ir-Tidewater mer-
ger possibilities are any better.
Tidewater officials paid an aver,
age of better than $40 share
for the 100000 shares they
bought from Jersey Standard.
The stock closed last night at
S1a. Sinclair isn't particularly
hurt by failure of a merger
now. It has over $50 100000 of
cash on hand, and has probably
made arrangements for crude oil
transportation until it gets a
company of its own.
Radio perked up bit yester-
day and made a belated entry
into the plus column. I am told
interests formerly active in the
stock are buying it now A good
deal of short covering also is
going on. A bang-up fourth quar-
ter will help Radio, but selling
price of the preferred B indi-
Gates real apprehension about
this by owners of the stock.