The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-09-14
WALL STREET
STILL JITTERY
Prices Drop Further De-
spite Federal Release Of
Sterilized Millions
By MAX BUCKINGHAM
Copyright, 1887, by United Press

NEW fORh, sept. l4.-tUP)
Wall Streets "jitters" were not
erased by the weekend announce
ment of release of $S00,000,OOO
in sterilized gold and the stock
market dropped more yesterday
despite a late rally.
There were three cycles to the
market. 1t opened on gains of l
10 more than 3 points in trading
volume of 1000 to 5000 shares.
The advance was not supported.
Thence for the next three hours
prices declined. At times trading
became so heavy that quotations
were at least five minutes behind
floor operations. The meager sup
port which developed during this
period was not followed. Lows of
the day were established at the
end of the fourth hour and the
Dow Jones railroad and utility av-
erages made new lows dating back
to 1885.
But in the final hour rally
started that had some semblance
of strength behind it. Prices jump
ed as much as points from the
lows. Trading volume picked up
and the tape at times was as many
as three minutes late. The days
highs were not reached but some
individual issues managed to show
gains for the day. The averages
closed lower. The final buying
movement was the first time dur
ing the current decline that the
market has shown any resiliency
after a sharp reaction and there
were reports that the scale-down
buying during the selling was of
the good" type--in other words
by the big traders. This led some
to believe that the worst had been
seen in prices.
Opinions in the street were con-
fused. The action of unloosing the
pent-up gold had two groups of
followers. One felt the move was
excellent as it assured easy money
rates for the winter when the
heavy Christmas season is on. The
inflationists figured it was a psy-
Geological betterment for the mar
ket and that stOcks-even though
the move was officially declared
as having nothing to do with the
stock market-should benefit.
Another group-thoSe who have
been the most pessimistic during
the break-felt that the action by
the federal open market commit
tee was a sign that the govern
ment admitted part of its fiscal
policy was wrong and was at
tempting to right itself. From this
standpoint they felt the move Gre
ated a greater lack of confidence
than prevailed before the action.
Government bonds, which were
to receive the greatest benefit,
strengthened almost l-2 point in
more active trading than has been
seen recently.
But there were other situations
which increased the "jitters." The
war statements coming out of
Hyde Park over the weekend
soothed no traders, despite views
abroad that the New York market
had more than discounted any war
threat now apparent.
Business conditions were uncer-
tain. The American Iron & Steel
Institute reported that operations
this week were scheduled at 80.4
per cent of capacity, gain Of 8.8
points. But this did not Offset the
more than ~ points decline last
week, generally attributed to the
Labor Day holiday. Private esti-
mates were for fourth quarter au-
tomobile sales in excess of 1886
period and that 1888 sales would
be at least as good as those of
1887. But raising prices-both
for raw materials and for consum-
er goods-still depressed the stu
alton and in this some saw further
inflationary moves.