Evening star., 1933-10-22
% STOCKS DECLINE
TO LEVELS Of MAY
IN UNCERTAIN WEEK
Railroad Shares Lose 80 Per
Cent of Advance Made
Since February.
BY CHARLES w. STORM,

Editor, The News Service Of Wall Street.
Special Dispatch to The Star
NEW YORK, october 21-Due to
multiplicity of developments construed
in Wall Street as unfavorable to future
prices for stocks, the general stock mar
ket the last week has been subjected
TO unusual pressure. with the result that
the average price of 80 stocks has de-
clined to level which prevailed during
the third week of last May.
The magnitude of the depreciation
which has occurred since the July high
prices were reached may be realized
from the fact that the average prices
of railroad shares have lost about 80
per cent of their advance from the low
level established February 27 to the
peak reached in July. The industrial
average has lost about A per cent.
Bewilderment Continues.
Despite this appreciable decline, there
is StM considerable beWilderment in the
financial district as to the immediate
future of the stock market. Some buy
ing has been appearing in the market
for stocks from what are considered
important banking sources. but it has
been on scaledoWn OF prices and OF
insufficient volume to Offset the volume
Of liquidation which has been steadily
coming into the market.
The Street received a welcome flip
in the news of President Roosevelt's
moves toward Russian recognition, and
stocks benefited.
Psychology in the financial district
has been at the lowest point in many
weeks because the Street is interpreting
recent activities at Washington, such as
supervision of production in the textile
industry, as forerunners to Government
supervision of general industry, and
this in turn is regarded as step
toward the limitation Of profits by
capital
Stock Probe Has Influence.
Findings at the Senate stock market
inquiry also have had diSquieting in
fluence on Wall Street as we'll as the
general public. Revelations of the lib
erality with which bankers used cor
poration funds in bolstering up their
individual incomes even during years OF
depression are undoubtedly undermin-
ing confidence of small stockholders.
The activity of corporation sharehold-
ers to dispose of their holdings the last
week is therefore matter for little
surprise under the circumstances.
hIlUJllcl OCNClUpIlICLlt WILL iioo as
gravated the sale of stocks is the COM
mon knowledge in the financial district
that some very large capitalists have
been hurt in the commodity as well as
in the security markets. Reports are
that these capitalists became over
extended in the wheat market, and, be-
cause of the huge losses Suffered-one
of them being reported as having lost
approximately All 100000 they we're
forced to dispose of substantial lines OF
stocks to make uP the losses IN 6Fa'n'
particularly wheat.
Reports also were current that Ger
tain members of the Senate would again
endeavor to prevail upon the President
to take some steps toward controlled
currency imitation and that the admin
istration would attempt to stimulate
commodity markets in an effort to quiet
the unrest prevalent in the agricultural
districts of the West.
(Copyrieht, 1888. by North American News
paper Alliance. Inc.)