Evening star., 1947-09-28
Stocks Drift Lower,
Easing Of Margin
Rules Stirs Hopes
By T. {. AppIesots
As,eeiassd Press Finoneiai Write,

NEW YORK, Sept. 27.-The stock
market ended its schedule of short
summer weeks with its seventh
decline in the past nine such periods.
At the close Of the quietest Ave-
day trading period since August,
governors Of the Stock Exchange
announced that any stock selling
above IS q share could be dealt in
ON margin october / or after. Since
March 1, 1945, margins have been
restricted to securities selling above
$40 share.
This action, restoring the rule in
effect prior to the $40 restriction,
was expected in financial circles to
stimulate more activity in stocks
in the $3.50 range.
Not one Of the 10 most active
stocks on the exchange Friday sold
for less than 10. A study this week
showed that the average price Of
the 10 most active stocks had been
increasing over recent quiet markets
and had reached 1912 a share.
Weeks Volume Smaller.
Total transactions this week
amounted to 3.531,950 or a daily
average Of 70e,390, compared with
a total of 4,180.320 in the preceding
week: Brokerage houses have esti-
mated their ''break-even" point to
be an exchange volume of l,0O0, 900
shares daily.
Pessimism in board rooms this
week was attributed by commission
houses to combination of concern
over international affairs and doubts
over the domestic economic outlook.
The l6-nation program for $l9.330,-
100000 of American aid to Western
Europe over four-year period, re-
newal Of the Soviet attack on United
States policy in the United Nations.
President Truman's appeal to con-
serve food here in order to meet
Europe's need and Britain's inten-
ton to withdraw from its Palestine
mandate highlighted the foreign
picture.
Domestically, anxiety was stirred
by warnings Of imitation dangers
and suggestions in some quarters
that the answer to high prices might
lie in re-imposition OF Government
controls.
Only twice during the week did
stock trading shake loose from its
quiet pace and on both occasions
prices skidded. The Association
Press 60-stock composite suffered
its sharpest decline for the week
since the period ended August 8.
The drop of IL depressed the aver
ave to 63.7, only L of a point above
its lowest level since June "a.
Monday Trading Quiet.
The ninth successive Monday ses-
sion without an advance saw quo
tations at 6 standstill in trading
that aggregated only $4,000 shares.
A swift burst of liquidation which
made the ticker tape for q brief
period in the final hour on Tuesday
lifted transfers to $4,000 shares,
highest Of the week. Some OF tbs
oils were weak on London reports
the Arab states might withdraw
United States and British oil con-
cessions. Foreign selling Of shares
was reported, and the averages were
OF 3, widest dip since September 8.
The market scored Its only daily
advance Of the week Wednesday
when lack Of follow through on the
preceding sell-off brought some bid
ding, but transactions were lightest
of the period at $4,000 shares. In.
activity persisted Thursday until
the final hour when offerings broad.
ened and 100000 shares traded Ia
go minutes bringing declines rang
ing to around 2 points. Total
transfers were 10000.
Fridays session was subjected TO
cross-currents Of easing and steady
ing, with selected industrials lower
at the close, in volume Of $4,000
shares.
The market returns next week TO
normal six-day operation. with the
two-hour Saturday session being re-
sumed for the first time since last
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