Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-21
NEW YORK PRICES RALLY.
Spectacular Recovery Made After Huge
Volume of Early Selling.

NEW YORK, September 81 (Pl.-
Prices rallied with spectacular swiftness
on the New York Stock Exchange today
after an enormous volume of early SELL
ing prompted by the London situation,
had swept principal shares down 81 to
So.
The weight of the London crisis fell
largely on the New York Stock Ex-
change today, but that leading world
market acquitted itself well In absorbing
the huge volume of selling orders Dump
ed into brokerage offices over the week
END.
Prices Of principal issues broke under
the pressure. However, shorts, instead
of adding to the confusion and thus
possibly creating a demoralized condi-
ton, made extensive repurchases against
sales made during the severe September
decline.
To guard against a critical situation,
the Exchange Governing Committee be-
fore the opening, through Richard
Whitney, president, announced that the
rule against short sales had been in
voked. Selling came with rush when
the big gong above the exchange floor
rang at its usual hour of 10 am. but
the decline was cushioned by the retreat
of the shorts, and prices rallied by the
end OF the first hour.
Fluctuating widely, the British pound
sterling dipped to new low for the
present decade of $3.75 for cable trans
fers before rallying to around S4.35 in
the foreign exchange market here today.
The temporary suspension of the gold
standard by Great Britain demoralized
the foreign exchange market, and bank
erS experienced difficulty in establishing
a market price for foreign currencieS
and in only few instances were rates
more than nominal. Only six foreign
currencies were generally quoted.
The Canadian dollar suffered with
the pound sterling, and fell to the low
est level reached in many years, being
quoted at a discount against American
dollars of 5i5 per cent, or 941a cents.
The Italian Ira sagged 2 cents, Span
ish peSeta was off 10 points and the
French franc and Swiss franc were I'M
changed.
Wall Street came to work this morn
ing with the knowledge that the Stock
Exchange expected to open as usual
and that leading bankers who had been
in conference over the week end did not
regard the situation as sufficiently
alarming to warrant the hasty forma-
ton of a banking consortium, such as
the market had in the Fall of 1929.
Some of the sessions of financial
leaders lasted far into the night.
Liquidation, coming In part from
abroad, where the London, Berlin and
Amsterdam markets were closed, piled
up huge offerings against the opening.
So strong was the urge to sell that
transfers in the first half hour swelled
to 100000 shares, the largest volume
for that period since June II, 1890
There was not, however, anything
comparable to the Generalization that
characterized those tumultuous days
nearly two years ago when the big bull
market collapsed, nor did the early
sales bulk as large as the turnover wit
messed in some previous bad breaks
since October, 1929.
AS the market rolled into the second
hour favorite shares were rising stead
lily. American Telephone recovered
most of an extreme break of nearly
Sc. United States Steel common, meet
ing stalwart support. actually opened
IS cents higher and stubbornly re-
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