Show J I. I Credit Tempest Breaks r Securities Markets Market f fW YORK roni Nay May 25 AP AP So So- So 0 8 markets were sharply depressed de de- de- de pressed d this week by a new tempest fn In the tie credit situation I Publication on Wednesday of oC the f reserve Dd advisory councils council's Recommendation recommendation that reserve re erve banks b L Ibe b be permitted to raise ralso their thoi redis- redis rates rales caused one of oC the most 1 Drastic tock stuck market reactions as r measured IC by price Ind indices Ices expert expert- tn id d In years year Th The market rallied briskly on but sank Into a n secondary reaction on Friday ay and Saturday which carried dozens of oC Issues to toe v pic tea e lows for the year lear ear In the meantime meantime mean mean- time bond prices sagged to the lowest levels in about three years B Publication of oC the advisory coun- coun clis cli's cU recommendation convinced nl Walt street that the tho reserve board Chart all finally naly d d l i to permit the I fw York and Chicago banks to tonit tout nit ut up their rates front from 5 to 6 per r V Cent ent nt as these banks are arc generally h understood Id r od to have sought such perr per per- r tl The f fact ct that tho higher I r at tes were ver not nt put Into effect howver how- how t vcr ver and nd reports U that at t the federal I board was again deadlocked Over r the mater left Wall Wal street li 11 y perplexed and unc uncertain as ta 0 th h th future dany tan brokers had hao come cOle to o the tho w that au an 81 In I et baso aM In tho the rediscount rate would remove un- un o ad In the Ion long run be best for tor ti thi market and U the he action of acton 10 r No board oard this ll W Week ek to Conclude Conclude that members rs C the bOrd bond had bad decided that the te can best belt be accomplished d i by holding the threat ot of a. a higher vL ate oVer th head a thaI The Putting i It Into effect rather tact fact that the Ule St. St Louis OFallon Luis regard or of the us one beats mets bullish dh lol- lol 01 OI i of or the th faSt St Y year fa failed to Induce n nl any v broa broad movement wa ls rails rais Were sent ura Aithea h soaring on 01 the an- an of the tho trials ladus Were r throw P Overboard ails and the to buy l ad ho Industrials consequent decline I In I ty j a 1 sUdden cUon In the tho re re- mis This de demon t the C o of nerves into the marl et lies or cd 1 1 i situation during durIng the tho unc uncertainties of oC Call money was In the the most abundant abundant dant supply curn during curing the tho week of or any anytime anytime time since sinco up ly January the tue rates getting getting get get- ting tn down dO 1 to 6 POP POI cent the lowest since Inee last laist lart August and considerable sums loaning In the tho outside market maket at nt 5 This situation however r. o appeared appeared ap ap- to be he purely tC temporary AS 16 s Indicated tel by 15 rates of oC 3 to 9 1 2 pcr Per cent edit for COl tune time mOlie money The midyear credit pinch which will wil probably begin next week is expected to be bo unusually severe li In view of oC tho the largo large volume lumc o of new flow financing a t to be C t taken It n up I j. j |