Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-08-09

NEW YORK MARKET
Features of the Days Dealings in All
the Leading Stocks

New York. Aug. S.-A sharp
break OF 8 SIS points in United States
Cast Iron Pipe unsettled today's
stock market after an early period
OF strength due to active short COW
ering prompted by the cut in the
local federal reserve rediscount rate.
Sales fel below the million share
mark for the third consecutive day.
Spirited bidding for leading issues
gave the market a strong tone at
the opening. However. the failure
of the spectators on the long side
TO follow UP the advance encour-
aged a resumption of profit taking
which reached its climax when large
blocks of L. S. Cast Iron Pipe were
thrown into the market, apparently
for pool account.
Active trading took place in the
shares OF the railroads mentioned in
connection with the Nickel Plate"
merger. traders endeayoring TO ad-
just prices IN line with the proposed
exchange ratios Nickel Plate"
common scared 5 L. points to
back 5 points. Pere Marquette COM
mon crossed IS, a new top. but fell
back points. while the Erie issues
lost ground. the common dropping
two points. the first preferred one
and the second preferred yielding
fractionally. Chesapeake and Ohio
issues lost about l IL points each.
Special buying was again noted in
the anthracite coal carriers, Lacka-
wanna and Delaware and Hudson
establishing new 1924 maximum
quotations at $50 rs and 126. re-
spectively. Pittsburgh and West
Virginia common yielded on profit
taking. closing > 3-S points lower at
80. Canadian Pacific, Texas and
Pacific. and Wheeling and Lake Erie
preferred also sold at their best
prices OF the year.
L. s. Steel common sold as high
as los IA. but reacted later 10
106 rs, of SIS. Baldwin. Stude-
baker and American Can. the other
so-called pivotal stocks, also closed
fractionally lower.
Bullish demonstrations continued
in a number OF specialties. Gen.
eral Baking. Foundation Company,
American Radiator. and Pullman
being among the dozen stocks to
break their previous high prices.
Good buying also was noted in
Aliys-Chalmers. National Dairy
Products. Sears-Roebuck. American
Brake Shoe, American Beet Sugar
and American Car and Foundry.
Cuyamel Fruit sank TO a new low
at 80 Is and then rallied two points.
The further reduction in the local
rediscount rate had no immediate
effect on the money rates. Call loans
held steady at = per cent. while time
money was quoted from = TO > L.
mercial paper market was quiet with
rates ranging from s IA to , 81.
Foreign exchanges opened strong
and then turned reactionary- De-
mand sterling moved up nearly )
cents TO a new 1924 peak price at
S4I Is and then cancelled its gain.
while French francs were active
around 1-2 cents. Swiss francs
crossed 10 cents for the first time
this year. approaching within few
points of parity
Reduction of the New York fed
eral reserve banks rediscount rate
10 : per cent lifted bond prices TO
higher levels today. but. except for
an initial furry, the response lacked
the vigor which followed trading fol-
lowing rate changes earlier in the
year.
Brisk rallies in Liberty bonds al
tested 10 the influence eXerted upon
the United States Government list
BY alteration OF the bank rate. Ad-
vances ranged from 3-32uds tod
19-32nds. carrying two issues TO IVA
top prices The treasury LIS
crossed los to a record rate.
Stimulated by the lower bank rate
and the continued rise in foreign eN-
changes. all French governmental
bonds and municipal bonds surged
upward. leading many other Euro
pean obligations into rev high
ground. Closing prices were slight
IL under the top levels. but trading
in the foreign group was on an IN
usually broad and active scale all
day.
Bonds OF the railroads involved In
the Van Sweringens Nickel Plate
merger underwent a price readJust-
ment based on the terms which will
govern their entry into the new sys-
TEN. Convertible issues of the Erie
and Chesa peake and Ohio reacted
with the stocks OF these roads. but
the other lines. scheduled to become
the underlying issues OF the greater
Nickel Plate" were strengthened.
The position OF high grade invest
ment securities was improved by the
lower bank rate. with Atchlson.
Northern Pacific and other railroad
liens moving UP.
Total sales were 81. 094. 600