Crash

On Tuesday, March 26, came the biggest stock market crash in Coolidge-Hoover history. For a week the market had been unquiet and harassed. Beginning with Wednesday, March 20, the market had registered falling prices, small recessions every day.

On Monday, when the market reopened, speculators were nervous -their biggest bugaboo, the Federal Reserve Board, was to meet that afternoon. The usual Monday morning rally, produced by the accumulation of buying-orders during the weekend, failed to come. Call money was renewed at 9%. The rush of selling began. The bears pressed hot on the heels of their enemy; amateur speculators took flight and fled. Pool and investment houses which had been boosting favorites acknowledged the stampede, stepped aside to let it pass. The money rate went to 14%, the highest in nine years. At the close, many industrial stocks were down nine points or more.

The banks had withdrawn 25 million dollars from the market, a mere bagatelle, less than one-half of 1% of the five and three-quarter billion dollars in the market. The Federal Reserve Board had adjourned without speaking. The drop had been severe, but not quite so severe as the drop on December 6 and February 7. It would soon be time, the market said, for the shorts to take their profit, for bargain hunters to appear.

The next day (March 26) money opened not at 9%, but at 12%. It rose to 15%, exceeding the previous day's high. Another and a greater selling wave set in -especially in coppers. The amateurs fled even faster than the day before and hundreds who did not flee were sold out, adding to the casualties. And money still rose, up, up, to 20%.

Total number of shares sold was 8,246,740 -far greater than on any previous day. At its close came a sharp rally-some stocks closing higher than they began. Had the Federal Reserve won its battle to check speculation? This remained to be

Twenty five noteworthy stocks with their highest price in 1929 and their low price on March 26: 1929 March 26

High Low

Allied Chemical 305 3/4 260 1/4

American Can 129 129 110 1/8

Anaconda Copper 174 7/8 142

Bethlehem Steel 111 7/8 95

Chrysler Corp 135 89 3/4

Columbia Graphophone 88 3/4 64 1/8

Crosley Radio 125 86

Electric Auto-Lite 170 126 3/4

General Electric 262 3/8 219

General Motors 91 3/4 77 1/8

Goodyear Tire 154 1/2 125 1/2

International Harvester 115 98 3/4

International Nickel 72 3/4 40 1/2

Johns-Manvile 242 3/4 155 1/4

Kennecott Copper 104 7/8 82

Montgomery Ward 156 7/8 111 1/8

National Cash Reg 148 3/4 118 1/2

N. Y. Central 204 1/4 178 1/2

Packard Motor 153 116 1/2

Radio Corp 109 3/4 82

Sinclair Oil 45 35 1/2

U.S. Steel 193 7/8 171 1/2

Warner Bros. Pictures 134 97

Wool worth, F. W 224 1/4 192 1/8

Wright Aero 299 220