Evening star., 1923-05-23
FURTHER ADVANCES
IN STOCK MARKET
Trading Slows Up in After
noon After Heavy Buying
Wave Earlier in Day.
BY STUART p. WEST.

Special Dispatch to The Star.
NEW YORK, May 23.-Wal street,
always looking for specific explana-
ton, gave credit for most of this
mornings recovery on the stock ex-
change to the Federal Reserve an
nouncement regarding its discount
policy.
The assurance that the present Az
per cent rate was to be maintained
was of course rather superfiuous.
Recent developments in the money
market and in the bond market
especially the improvements in Uniteo
States government loans-had done
away with any lingering fear there
might have been on that score
More Details Wanted.
But the important thing Is that the
reserve board should have proclaimed
it's satisfaction with business con-
ditions throughout the country. II Is
TO be regretted, in view OF Virutent
bear" propaganda of the last tew
weeks, that the heads of the banking
systems did not go into more detah
in discussing the trade situation.
Still, it was the warning OF the re-
serve board in the early part or April
of what would happen il the upward
rush of production ana prices were
TO 60 Oh that had more than any
thing else to do with bringing ABOUT
the subsequent check.
The present announcement amounts
practically to saying that thls check
mas been salutaly mas accomplished
the object which was to restore
sounincss TO the Industrial structure.
California Pete Strong.
1t was not surprising when the
stock market turned upward today
that the true nature OF the recent
operations in California Petroleum
issues should have been more clearly
disclosed.
During the recent upheaval these
stocks mad acted in manner 10 sus-
geSt that some interest Was Quelly
taking all that was oilerea, resafu-
less of anything happening else
where. Today the eilects o. tnls az,
cumulation showed In a markeu
scarcity OF botn common and prererl ca
as they shot forward. The seemingly
good chance of California Petroleum
preferred being retired at the cdii
price OF 120 was, or course, the IN
centive back OF the jump in the STOCK
today.
In the general list the rally proceeded
sharply Tor the first hour or 80.
Stocks like Baldwin Locomotive. ran :
American and Studebaker at their
highs were up to points from tnelI
lows of Monday and Tuesday. steer
common was up 2 points ana hepuo-
lie Iron and Steel nearly 8.
Luil After Midday
The high levels, howeve-. were
reached under active bidding oy
traders on the short side and when
the demand from this source slach
ened, as it did after midday, prices
were inclined to sag off =.
Among the lower priced oils 1t
looked again as ii important inter
ests in Cosden and Marland when
holdings at the rising prices of two
months ago had got back enough
stock to warrant them taxing more
active hand in market operations.
Increase in the Montana Power
dividends from to per cent was
followed by sharp advance in that
stock.
Bears Attack Prices.
A half-hearted attack upon the gem
eral list was started midway through
the afternoon, but was speedily
checked People bullish on the market
were prepared to agree. however, that
the substantial buying which had
checked the decline after the spasms
Of Monday and Tuesday would not be
in a hurry to follow prices up. The
next procedure is for the market to
prove it's ability to maintain the eA-
isting level against the efforts OF
bear traders. flushed with two months
Of victory. If it can do this. re-
newal of pool operations for the rise
in special issues. such, for instance. as
the oils, is looked for.
While the steel trade reviews ad-
nit that the real test of prices still
lies ahead, because the partial slow
down in the oil drilling and construc-
ton enterprise has scarcely had a
chance to show. they report that no
cancella tions have so far occurred
and that the current volume OF Dusl-
ness is holding UP well.
Rumors of a curtailment in the
motor industry were answered today
by the Chandler company. speaking
for itself and the Cleveland Motor
Company Chandler officials are au-
thority for the statement that both
companies are runnin~ at capacity
production with Chandler needing to
ship less than 5000 cars more to reach
10000 for the first five months of 1928.