Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-08-06
RALLY IN STOCKS
MARKET FEATURE
Saturday Decline, Due to
Weakness in Rails. Quick
Iy Reversed.
By STUART =. WEST.

ipeclAl DlsnhtCn 10 l ne SIdT
NEW YORK. August 6.-The action
IF the stock market today bore out
he analysis of the saturday decline.
hat II was a sympathetic movement
accompanying the weakness in rail-
way stocks. Right at the opening
his morning il became evident that
ne pressure had been lifted from the
"ails and thereupon the whole list
tarted in to rally. Within less than
IN hour Northern Pacific, which
Lad been one of the principal
points from the Saturday low. and
treat Northern preferred nearly the
same. It only took a few hundred
share purchases to put Union PACING
Up above l21 as against Its bottom
figure Of 124k. This demonstration
of the scarcity of the floating supply
scared bear traders.
Leaders In the Advance.
The leaders of the advance among
the industrials were either stocks
which had shown most consistent
support during the recent unsettle-
nent or else stocks which had been
driven down most severely and in
which there was supposed to be the
heaviest short interest. In the hrst
,ategory were American Locomotive
and American Can. in the second
stocks like Crucible Steel. L. > Rub
her and the sugars. There was very
little Punta Allegro, Cuba cane pre-
ferred and Cuban American for sale
when the shorts tried to cover. More
notice was taken of the fact that the
1928 earnings of these companies have
been affected only slightly by the de-
cline in Cuban raws from So to "A
cents, inasmuch as fully three-quar-
ters of the holdings of these COM
panies were marketed at the favor,
able prices of the late winter and
early spring. Even American sugar,
although representing the refining,
which had been hit by the break in
the raw product. ran up quite sharply.
Another Prompt Comeback.
Another group which has a record
for PROMPT comeback after pelods OF
Eeneal market weakness, llNed up 10
it's reputation today. This was the
group of ruhlic utility stocks. Ameri-
can Telephone and Telegraph within
less than points of its 1925 high:
IS such a remarkable instance OF
stability that some have commended
there must have heen artificial sup
port \ careful inquiry from sources
which are in a position 70 Know
however. discioses that there mas
been no attempt to hold up the price,
hut that the stock has kept strong
all through the break simply because
the new investment demand has al
ways sufficed to absorb whatever
amount was offered
So far there has been little 70
learn from the market course OF TINS
rroup. Prices have been Very steady
for a month past. but with little ap-
ureciation in price. W ME specuid
tive bonds have been declining ana
while stocks have been dCtLn
there has been no weakness IN these
bonds although there has been little
evidence of institutional buying.
Five Points Above Years Low.
Atrhison general As are bonds typi-
cal Of this class They sold today up
a half point over Saturday closing
and more than five points above the
low Of the year Today.S price aiSo
was within half point OF the high
This wear Another instance is West.
.rn Union Real Estate 4f2S which sofa
today within "a of 4 point of the hlsh
nf the wear and over B Il points ahoEe
the low. L. s. Steel sinking fund os
arc selling about half way between
These instances are as yet TOO re"
in number to enable any general con-
clusion 10 be drawn.
View of Foreign Issues.
In the foreign department higher
prices were recorded for French ss
and 1I.s Both are now selling not
far from their price of month ago
and TINS NEUTRALITY-SUSPICIOUS. tIic iuS 49,
during this month news from ABROAD
has been very discouraging and
Frances exchange has been moVlns
almost continuously toward lower
levels. Two other foreign bonds
which are well taken. ON any recess
sion are the Dutch East Indies rs OF
i947 and Of 1862. 1t is reported there
j.. considerable buying of both these
issues for foreign account AmonS
the more speculative descriptions, the
CITY of Greater Prague Il2s were
firm Austrian IS sold around 80.
Speculative railroad bonds were lr-
regular. but mostly a little higher.
Among the industrials Hershy Choco-
late 6S gained fraCtionally. Ihere
was no important change among the
libertys.
Mid-AfternoOn Gains.
The high prices of the day were
reached midway through the after
noon. At that time steel common
above SIS was back to where 1t was
selling a week ago. Bethlehem Steel
was in the same position at As and
Baldwin Locomotive and Studebaker
I'D over 3 points from their lows. In
the last hour. however, fresh selling
cropped out in some of the rails. st
Paul common was driven down below
- for the first time and st. Paul pre-
ferred came off sharply. This led to
a reaction among the other north
western rails. which spread to the
railway list in general and checked
the rally in the industrial division.
SHARP TURN IN MARKET.