Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-01
FINANCIAL NEWS
NEW YORK MARKET
Features Of the 0ay's Dealings in All
the Leading Stocks

New York, April 30-Stcck prices
developed a reactionary trend in the
early part of todays stock market
because Of the bearish interpreted ion
nlaced by many traders on the quar-
terly report Of the United States
steel Corporation and Chairman
Gary's remarks and publication of a
relatively poor quarterly statement
by the Studebaker Corporation. Rea-
lization that many issues had been
oyersold brought about a recovery
later which left many popular shares
practically unchanged on the day.
While the steel earnings We're tho
largest Of any qquarter in peace time.
professional traders used the pre-
diction Of Mr.. Gary that substantial
improvement in business could hardly
be looked for until around election
time, as an argument for selling
United States Steel common OPEN
ed 9Sil. advanced to 931z. dropped to
97h and finally closed at %. Bethle-
hem Steel dropped about n points
on the announcement Of new fihanc-
ing but recovered part of its loss be-
fore the close. Other independent
steels yielded fractionally.
Studebaker (old stock) opened I'M
changed at 50, advanced to s2Z,
broke to so1z. a new 1924 low and
wound UP at S2,a. Erratic fiucatua-
tions also took place in L. S. Cast
Iron Pipe which opened at 80, ad-
vanced to 90, broke to 8Sh and closed
at 50 for a net loss OF IL.
Reduction of the local federal re-
serve rediscount rate from AZ to 4
percent which has frequently been
referred to as a constructive stock
market factor, was not announced
until after the market closed.
Cooper shares were inclined to
heaviness on selling ascribed to spec
ulative disappointment over the trend
OF the commodity market. Sugar
shares held relatively firm despite
disquieeting reports concerning Pc
ltical conditions in Cuba.
Independent strength was shown
by a number Of issues including Da-
vison Chemical, which closed more
than five points higher at 4S7s. Inter
national Harvester, and General
Electric.
Trading in the rails was rather
quiet with the popular shares dis
piaying a firm tone. Norfolk and
Western touched 1881 in the early
trading but reacted later to 1928, up
u.
Call money held at Az perennial
day despite the increased commercial
demand for funds to meet month end
requirements. The time money mar
ket was dull with a plentiful supply
OF funds offered at Az percent for the
shorter maturities. The longer ma
turtles and prime commercial paper
continued to command Az percent.
Foreign exchange trading was
arain with irregular fluctuations in
rates. Demand sterling ruled nearly
a cent lower around $4.37%. and
French francs reacted slightly to 6.43
cents.
Bond prices Jagged in today's dull
trading, which was enlivened only by
movements in n few individual issues.
Firmness of money rates checked the
buying tendency which recently had
been in evidence. turning the main
price trend toward lower levels.
Reduction in the federal reserve
banks rediscount rate was not an
ncunCed until the close of the mar
kcr. The cut from ~ to 4Go how
ever was welcomed in Oond circles, on
the theory that it would release ad-
dltional funds for investment pur-
poses.
Announcement by The Bethlehem
Steel Corporation that It would offer
$3O,00OOOO additional six percent
bonds to the public Influenced selling
of the company's outstanding issues,
which dropped points each to new
low prices for the year. the new
liens, which will be issued under the
consolidated mortgage and as part
OF series "a. will be priced at 10 10
yield about CAS- per cent.
Seaboard Air Line obligations were
the only conspicuous strong spots In
today's trading. Buying was stimu-
latde by the company's favorable re-
port on March operations, showing
the highest earnings of any month In
its history. Reports that continued
Improvement in the roads financial
position would lead to payment OF
accumulations gave leadership In the
movement to the adjustment 5s,
which jumped points to the pear s
best price at 6SA.
Serbian IS again were the outstano-
ing feature in the foreign group. es-
tabishing a new 1924 high record OF
S2M.
Total bond sales, par value, Slo'-
100000.