Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-14
STOCKS STEAD|ER
| AT TER EARLY LOSS
Leaders Supported Following
Heavy Selling Pressure
at Opening.
BY CLAUDE A. JAEGER.
Associated Press Financial Editor.

NEW YORK, October 14-Trading
turned relatively quiet, and share prices
made steady and broad recovery in to-
days stock market after a furry OF
liquidation at the opening, representing
an accumulation of selling orders over
the week end, and possibly the final
jettisoning of weakened accounts.
Sale of large blocks, several individual
transactions running from 5000 to
$4,000 shares, during the first few
minutes depressed prices close to the
lows of last Friday, but the resistance
met at that level was impressive and pro-
NOTED extensive short covering. In
this connection it was notable that
economic advisory services in their
weekly advices to customers cautioned
against being frightened into disposing
of good securities, and at least one of
the larger services advocated substantial
investment of funds in selected stocks
around recent levels.
The first furry of selling depressed
prices about l to points, but by early
afternoon there were numerous net
gains Of like extent, most pivotal shares
showing advances. Trading was In
fair volume, but failed to reach the pro-
portions of last Friday or Saturday.
United States Steel declined 3A points
to 14435, then made full recovery.
American Telephone converted an
early loss of more than points into
gain of 8. Allied Chemical dropped
nearly 4, then rebounded to show
gain of about S. General Motors sold
off a point to 34A and was one of the
few prominent shares reaching new low
ground, but it quickly rallied.
News of the day and the week end
was largely reassuring Further selling
pressure in the grain markets was one
of the few adverse influences. Brokers
stated that the two-day week end
closing had permitted the financial
community to make sane appraisal OF
the stock market situation and that
conclusions we're in the main cheering.
The reduction of $215, 000, 900 in loans
on securities by weekly reporting Fed
eral Reserve member banks was &C
cepted as indicating that real cleaning
out of troublesome situations had been
extensive. This reduction was consid-
erably larger than the drop OF Sl58,-
O0O, 900 in brokers' loans.
In recent months brokers loans have
fallen much more rapidly than bank
loans on securities, indicating a mere
transfer of loans from brokers to banks.
A reversal of the tendency was regard
ed as decidedly cheering.
American Telephones third-quarter
earnings statement showed a little i'm
prOvement over Dotn the preceding
quarter and the like quarter of last
year, and was markedly better than had
been expected in some quarters. Earn
inps per share of $255 were substan-
TALLY less than the 1910 of the same
period q year ago, owing to larger capt.
talization, but showed that the years
dividend was being earned by a sub
stantial margin.
Other corporate news included a
statement by President Sargent Of Chi
cago Northwestern that September
earnings were the best of the year.
United States Rubber reported produc-
ton Of tires last month was % per cent
greater than August, and that is is plan
ned to continue this schedule through
October; sheet steel producers in Chi
cago reported shipments in the first 10
days of the month as nearly double
those in the like period month ago.