Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-24
|STOCK LIST DROPS
| IN SMALL TRADING
Rail Shares Subjected to
Further SeIling-New
Lows Recorded.
BY GEORGE r. HUGHES.

Special Dispatch to The star.
NEW YORK, August -. - Lower
prices prevailed in today's stock market.
The primary cause was the political and
financial crisis in Great Britain, as to
the significance of which, from the
longer viewpoint, Wall Street was much
confused. Under the circumstances,
however, liquidation was deemed the
safest course to take.
During the course of the session the
railway shares, according to the Stand
ard Statistics averages, made a new low
for the bear market. The Dow Jones
average held above the previous low
and, due to q partial rally in the last
half hour, both closed above their ex-
IRENE lows.
Outside the stock market the course
OF sterling exchange was most closely
watched. Quotations were of 1892 OF
point in the afternoon. but it was rea-
iized thst>the market was more or less
artificial Bonds were severely de-
pressed, wheat sold at another new
low and only cotton displayed any
strength in the commodity list.
It only remains to add that the
stock market sold of on very small vol
ume. The late recovery Cancelled q
good part OF the loss. The cabled re-
port that the Bank Of England had
used UP most Of the $3.50, 000, 900
credit established by the Bank Of
France and the Federal Reserve Bank
Of New York was not accepted as cor
rect In we'll informed circles here as far
as the local credit was concerned, but
these reaSsurances did not serve TO
allay uneasineSs.
It was the London dispatches. en-
phasizing the grave character of the
political and financial crisis in Great
Britain, that weighed down on the
were not offered in large volume, but
bids we're scarce and the trend was
downward from the start. The market
was distressed as much by the similar
movement in bonds as IL was by the
cables from abroad and. inaS1nuch as
1t was the railway bonds which were
the weakest among the domestic issues
1t least, 1t was the railway shares which
made the poorest showing.
In the first two hours new lows for
the bear market were made by such
Pennsylvania, Canadian Pacific. Balti-
more 81 Ohio, and Great Northern pre-
ferred. Atchison sold on within q
point or 80 of its extreme low. It was
evident that the rails were headed for
test Of the June lows.
The reaction In the industrial list ex-
cepted only the oils and certain low
priced stocks whose chief protection
was their inactivity United States
Steel broke through s6 before nom,
compared with the June low of 83lk,
Eastman Kodak slipped on over 2 points.
American Can dropped close to $50 q
share or less than Q points up from its
low for the bear market, American
Telephone e. Telegraph was down
points, but still far above its low, and
General Motors. although giving wey
gTudeingly. made . new low en- the
movement
All this was accomplished without any
important volume. There are almost no
weak margin accounts left In the street,
fact which, Of course, does not pre-
vent stocks from going lcYer. but which
does remove the possibility Of any forced
selling There is q large short interest
but it Is doubtful If that was increased
much today. Stocks are so low that
even the most confirmed bears are hest
tant to extend commitments for the de-
cline. On the other hand there is
nothing to cause them to cover.