Evening star., 1921-04-28
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STUDEBAKERLEADS

NEW YORK. April 2S.-Reduction
in the English bank rate from I to
eh per cent was the incident OF chief
Importance IN the financial situation
today. Tho 7.per cent rate had been
in force little over year. and while
foreshadowed by the lowering OF
rates OF British treasury bills on two
successive occasions within the past
month. the reduction Of the minimum
discount was nevertheless a matter OF
wide significance.
In the first place, il is a measuresof
sentiment in English financial circles
toward both the German reparation
question and the troubles with coal
miners. In the second place. ii is a
practical recognition by high bank
ing opinion that the worldwide
credit strain is passing.
That the Bank of England action
will have its effect upon the attitud.
OF the Federal Reserve Board here
can hardly be doubted Along with
the fall in the open market rates on
commercial bills, il suggests gen
eral lowering of federal reserve rates
In the near future.
stocks Unaffected.
The stock market, unresponsive as
It has been lately to the larger devel-
opments in the situation. gave no par
ticular heed to the English bank ac-
tion. For the most part. il was a con-
test between rival sets of traders. one
taking the stand that the turn in in
dustry had come and that the price
trend was upward. the other arguing
from the imm ediate technical position
that stocks for the time being had
had a sufficient advance.
These opposing sides showed their
hands principally in few highly
speculative and easily manipulated is
sues.
For an hour or so the bear party
was on top. as the result of a success
full drive against Mexican Petroleum.
Then the tide WAS suddenly turned.
first, by a swift rush upward in Inter
national Paper and later by a revival
Of eager buying in Studebaker and
stocks. The Studebaker move was
attributed to further buying from
interests desirouS of having large
representation at the meeting scheduled
for Saturday.
In international! Paper it was a case
of large short interest taking alarm
at the smallness OF the floating supply
of the shares Indicated by the large
minority representation at the meet
ing yesterday.
Studebaker Pushed Up.
It was soon after midday that
Studebaker pushed through its previ-
Gus high of S9%s A great many stop
orders had been placed by bear traders
just above this figure on the theory
that if the stock We're strong enough
to go through its former top. ii would
go considerably higher. The attempt
to execute these stop orders all at
once occasioned a furry. In a few
minutes Studebaker jumped across 80
and then across 81.
The directors are scheduled to meet
on Saturday. The prospect of i'm
portant changes in the directorate to
be announced at that time was the
immediate motive back Of the move
m ent today.
The large interests who were most
identified with the advance from the
sos were said not to be Sdoing any
thing in the stock this mbrning. But
if they were doing no buying they
were certainly doing no selling. In
fact Studebaker gets scarcer the
higher it goes. thus bearing out the
view that those who have been buying
so heavily into the property during
the last month or so are afraid to sell
any of their stock for fear Of losing
their grip.