Evening star., 1933-07-21
100000 Units
Change Hands in
Chaotic Session.
LOSSES ARE HEAVIEST
SINCE CRASH OF 1929
Ticker Falls Far Behind ;
Exchange May Be
Closed Tomorrow.
BY the Associated Press.

NEW YORK, July 21.-Stocks
crashed downward today in the
widest market since 1929. Extreme
losses generally ranged from So
to more than $12 a share for
lshares of the country's largest
corporations.
Trading in many issues was de-
moraliZed due to the absence OF
supporting orders. Pools liquidat-
ed stocks in enormous volume and
there was tremendous selling from
speculative margin accounts that
had collapsed.
Reports that the New York
Stock Exchange planned to close
were denied by the Exchange,
which also said that dealings had
not been suspended in any issue,
despite the chaotic condition of
the market. The tape at one time
fell half an hour behind floor
transactions.
Tape Far Behind.
By 2:55 o'clock the market had rail-
lied from the lows. The rebound for
some leaders was substantial, Ameri-
can Telephone swapping back to $119
from STA, reducing its loss by half.
United States Steel common, which had
collapsed under $50 for a loss of about
So, veered back to above $50, while New
York Central after losing $11, cut its
decline by $5.
Indications were that the turnover
would exceed 100000 shares. At 8
O'Clock, the usual closing hour, the tape
was half an hour late.
Nof ho frpnziad oor1u ctaCoc
of the decline four years ago had the
market witnessed such drastic def1a-
tion of values as occurred this after
noon. Stocks were offered for what
they would bring and buyers. for a
time. were scarce at any price.
Traders Try For Turn"
The upswing that started shortly be-
fore 3 o'clock appeared due to heavy
short covering as well as purchases bv
traders who were trying for "a turn"
on the theory that a rebound was due.
The break conincided with tumble
of S6 a bale in cotton not long after
l o'clock. Until then the market had
been steady to firm after an irregular
opening.
The market was still climbing from
its lows after 3 o'clock and by $40
losses had been roughly cut in half.
off S375 at S120. while United States
Steel was down $3.50 at $50.
Stocks had spent a very quiet noon
hour, milling about ct generally higher
quotations, but shortly after l O'Clock
offerings were dumped onto the ex-
change in large volume and quotations
spun downward rapidly. The market
was again thinly supported. stop loss"
orders, as well as sales from weakened
margin accounts, added to the neaVy
turnover.
Cotton Drops Sc.
Cotton's losses ran to around s6
bale. Liquidation in futures assumed
large proportions.
large part in the afternoon slump.
THE markets firm tone during the
earlier trading doubtless prompted
many brokers to give customers more
time in which to fortify balances de-
pleted by Thursdays violent shake-out;
but when prices began to crumble
afresh, weakly margined holdings were
dumped.
Wall Street continued to view the
swift and sweeping decline OF this week
as a logical adjustment OF top-heaVy
bull market. The Spring and summer
advance. it was pointed cut, had been
pearance of crack was hardly SurprlS-
ing to many traders. There was dis
nosition to consider this break in the
light of what had gone before-a Strong
advance followed by strong reaction
Clerical operations in brokerage houses
we're badly jammed as result OF the
big markets of Wednesday and Thurs
day, especially yesterday. when 8,122,--
500 shares changed hands, the largest
volume since May S, 1880.
Whether the tangle would prove SO
severe that a holiday would be needeo
to unravel the bookkeeping was not eVl-
dent. but it was suggested, In some
quarters that respite, such as was
being given today in the Chicago and
Kansas City grain markets. might be
needed if volume continued heavy
During the violent swings of late 1929
the stock Exchange took several holi-
DAYS. either halting operations COM
pletely or reducing the number OF trad
ing hours.
Break Long Overdue.
Banking circles here have felt that
a market break was long overdue and
have pointed out that a readjustment
was inevitable. They have shared the
reported view of some washington OIL
cials that a spanking of spectators
would do no harm provided a decline
did not get out of hand.
Many banks early this week began
to tighten their collateral loan require
ments as a means of controlling the
speculative mania, which had assumed
1929 proportions. So far as IS known
there has been no action by the Fed
eral Reserve System toward curtailing
market enthusiasms, local commercial
banks having applied the brakes on
their own initiative.
This mornings batch of margin calls
was one of the largest in some time
and was we'll spread over the entire
country. Commission houses here re-
ported that the response had been gen.
orally satisfactory and that many ac-
counts, weakened by Thursdays big
break, had been bolstered.
The pace of the past few days was
plainly beginning to tell on the finan-
cial district. Pages and floor traders
on the Stock Exchange were badly
tired, while clerical workers, many OF