The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-24
FEDERAL RESERVE
STATEMENT AIDS
BUYING MOVEMENT

NEW YORK, May 23.-Prices con-
tinued their upward course at the
opening of today's stock market in
response to further short covering
and a moderate amount of new buy
ing attributed by the recent low
prices. The recovery, while gener-
ally regarded as a correction of an
oversold condition. undoubtedly was
aided by the statement of the ad-
visory council of the federal reserve
board setting forth that business
conditions were sound and that there
was no immediate prospect of an in =
crease in federal reserve bank rates.
The Ially was checked in the late
dealings, however, by another bear
attack on the steel shares, which was
weak on report that accounts of the
Bethlehem Steel corporation for
$S,s50.o00 alleged to be due under
wartime contracts have been tenta-
lively disapproved by the shipping
boards claim committee. Bethlehem
steel, which had sold as high as 81 3s,
dropped to So, new low record for
the year, and then moved back to
say, where it was off liz points on
the day. Several other popular
shares, particularly in the steel and
equipment groups, eased in sympathy
but the general level of closing Prices
was higher than that of yesterday,
although the volume of sales was
considerably lower.
The weekly steel and iron trade re-
views report no change in that situa-
ton, but emphasize that the test of
prices is ahead. and that the falling
off of structural work as we'll as in
oil field dril/ng will be factors. Thus
far there has been little or no sign Of
duplicate orders or cancellations.
California Petroleum was one of
the outstanding strong spots, touch
ing 104es and then easing off to
1928, where it was up points on the
Gay. The ready absorption of all Of
ferings of this stock indicated ac
Some good buying also was noted in
Marland Oil, which crossed Al and
then eased off to 46K, up 8 points on
the day. Impressive strength also
was shown by General Electric,
American Car. Goodrich, American
Brown Shoe, Montana Power. Loril-
lard Tobacco. Sterling Products. Pos
tum Cereal and Jewel Tea preferred.
the net gains ranging from 2 to 6
points.
Call money opened and renewed at
fore the close. The demand for time
money continues quiet, with occa
sional maturities up to four months,
arranged at per cent, bankers ask
ing 5H per cent for the longer dates.
New comN efcial paper is being re-
ceived in fair amount. the bulk of
the prime names commanding per
cent.
Trading in the foreign exchanges
was quiet, with continental selling
causing slight drop in some of the
principal rates. Demand sterling held
fairly steady around S4.63 and French
francs around 6.66 cents. Norwegian
kroner dropped 10 points to 1906
cents, a new low. German Marks adj
vanced slightly to .0019 cents, despite
the publication of the weekly Reichs-
bank statement showing an increase
of nearly $50, 900. 900, 600 marks in cir
culation, bringing the total in excess
of seven trillion marks.
Days total sales, SS4,100 shares.
Twenty industrials averaged $3.50:
net gain. .32. High, 1928, 10o.5S; low.
92.77.
Twenty railroads averaged 1921:
net gain, rs. High. 1928, 90.63; low.
S0.13.