Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-06
MARKET SHAKEOUT.
|. IS BELIEVED ENDED
Powerful Bear Pool Has Be-
gun to Cover Heavy
Short Sales.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, May 6.-Another hectic,
heartbreaking five-hour session, very
similar to the November frenzy, occurred
change. The turnover was the greatest
of the year, totaling 100000 shares
1t wasn't because the final sales at 3
o'clock were higher than the opening,
which they were in most cases, but be-
cause the swing in individual stocks was
so violent that panic ruled in many
places during the session. The speedy
gyrations burned many a trader up and
left him weak and wondering.
report was widely circulated that
vast amount of British selling, precipi-
tated by the arrest of Gandhi, had
caused the break. There was no truth in
this. British interests are buying heavily
in this market at the present time, and
very few are selling.
The same thing goes for French in
dustrial and banking leaders, who are
large holders of American stocks. They
are probably buying more than the
British just now.
So it's not foreign selling that caused
the drop. Then what is it?
Whats all the shooting about?" I
asked an old successful stock market
trader, after the market closed yester-
day, and he replied:
Last Wednesday bear raid of very
large proportions, financed by some of
the richest men in America, was formed
under the leadership of William DAN
forth of Boston, He is master psy-
chologiSt. His earnings last Fall in the
bear market and in this market are
known to be stupendous.
This group began selling Wednesday
and continued until today (Monday).
They never quit. When the stocks began
/ to crack. they hammered them all the
! harder. They had unlimited funds.
When things looked the worst today,
and the best stocks were smashing badly
to new lows these men were warned by
banking interests that enough damage
had been done. They decided the time
to quit had arrived-for the present. So
in the final hour, they began buying
stocks to cover short sales, with the re-
suit that stocks rebounded from 5 to Is
points.
This tells the story, think the worst
is over now, and that stocks will assume
their normal activity by the middle of
| the week"
! A remarkable document-one signed
| by more than 900 economists from As
| States and 179 colleges In opposition to
! the pending Hawley-Smoot tariff bill
has just been published. The men
signing this document present four rea-
sons why they think the President
! should veto the act. Here are their rea-
sons and their comment:
THAT the Hawley-Smoot bill will
| raise the cost of living and injure the
majority of American citizens. 2-That
the farming population, vast majority
of them, will lose more under this new
bill than under the present one. s.
| That American export trade in general
will suffer. 4-That it will result in an
| increase in unemployment, already
acute.
1--WE do not believe that American
| manufacturers in general need higher
| tariffs Already our factories supply
our people with over 96 per cent of the
manufactured goods which they con-
sumo, and our producers look to foreign
| markets to absorb the increasing out
| put of the machines. Further barriers to
trade will serve not we'll, but ILL.,"
Among the signers of this protest are
Frank D. Graham of Princeton Uni
versity, Henry r. Seager of Columbia
| University, Frank w. Tausig of Harvard
University, Ernest M. Patterson of the
| University of Pennsylvania, Irving
Fisher of Yale University, Paul r. Doug
| las of the Chicago University, j. Law
| renee Laughlin of Chicago and Claire
! Wilcox of Swarthmore College.
| Copyright 1890. by North American News
paper Alliance.)