Show STOCKS HEAVY BElT NET I. I Mart Rallies in Forenoon Then Drops as Short Covering Is Removed NEW YORK June 2 V p closed heavy Tuesday although ne nel losses were generally much than the declines of the previous ses ses- ses ton sion The market rallied in the fore fore- forenoon noon after an early flood of liquidation dation daton had Irad been exhausted but turned downward again shortly noon as soon as the support of or short covering had be been n removed The new Tew Canadian tariff schedules Im Imposing Imposing Im- Im posing higher duties on numerous numerous Important articles of American manufacture man man- and the public utilities speech of Governor Pinchot of Pennsylvania Pennsylvania Penn Penn- sylvania at French Lick found sen sentiment sen- sen easily disturbed after the experiences of Monday Reports that the weekly freight car loading figures would show a small gain brought In further covering coy cov ering toward the beginning of the thelast thelast last hour but the market again turned downward and showed net declines f fo o 1 I to 4 points Sales ex exceeded exceeded ex- ex shares U. U S. S STEEL OFF U. U S. S Steel dosed closed nt at 83 8 8 3 off 2 points and within a small fraction frac frac fraction tion of the days day's low American Telephone Telephone Tel Tel- ephone lost 1 4 13 4 3 somewhat less than half of the extreme drop Standard Oil of New Jersey North American Anaconda American Smelting CalUmet Calumet Cal Cal- Arizona Paramount Atchison Atchi- Atchi son and New ew Verk rk Central were down a point or so Johns Manville National Biscuit General Electric and a few others finished firm Union Pacific slumped 4 There was considerable weakness in fn specialties Eastman Kodak lost 4 4 Continental Can Timken Inger- Inger eoll Rand and National Lead 2 to 3 and General 5 Wall street was inclined to attribute attrib ute part of the recent weakness to toan toan an undermining of the technical po position po- po through covering prompted by bythe bythe the stock exchanges exchange's questionnaire on the short position issued a week ago ngo Substantial liquidation of long Jong accounts has enabled bears to with withdraw draw as they shw fit without se seriously ac- ac disturbing price levels OIL SHARES QUIET Oil shares were quiet despite the reduction in crude prices and an unofficial estimate of another gain in production for the pat past week Steel issues after the early carly upturn seemed worried by prospects of a drop in the operating ratio which threatens to go under 40 per cent before much more time has elapsed Although the automobile industry has shown some recession from the theMay theMay May peak It has held up rather better better bet bet- ter than expected Output Output- of one of General Motors Motors' low priced cars showed a good gain over April and nearly reached the total for May 1930 Replacement requirements are figuring substantially in the present market The liquidation of security loans continues at a rate satisfactory to banking which have been anxious to see this form of borrow borrow- in reduced to a more conservative basis The drop in the week ended May 27 was while the shrinkage from the past year has been nearly All other loans which covers commer commer- commercial cial dal accommodations fell off contrasting with a recent up upward upward up- up ward tendency Money markets were undisturbed by the June Juile 1 settlements which In- In in included chided not only the usual large re requirements re- re for dividends and interest interest inter inter- est but also payment on an treasury bill issue Call loans loans' renewed at 1 2 11 2 1 per cent The international credit granted the Austrian National bank with the participation of the tho federal re reserve i-c- i serve banks was viewed as a significant significant cant commentary on the willingness of large banking interests to coop coop- crate on an international scale Under the leadership of the bank for international settlements it is be believed believed be- be the large central banks willbe will willbe be able to solve expeditiouslY troubles troubles trou trou- bles that may arise at isolated points The effect of the present agreement will be to strengthen the hands of the Austrian |