The Birmingham age-herald., 1924-02-08
|PROFIT TAKING
 LOWERS PRICES
Extensive Selling Follows Early Buoyancy In The Stock
 . Market
BY WILL JOHNSON
tsy L....s VII. |. n. Az. H.r.la,

{. NEW YORK, Feb. IA market Of general buoyancy in early dealings, stimulated by improved wire service and a splendid response to encourag- ing trade news,' developed extensive selling for profit taking purposes in the afternoon and closed with prices ranging around the lows for the day. A hardening process developed in call money rates, which opened at Az per cent only to be. marked up later to 5,s per cent. This directly con- tributed to the selling movement. and occasioned considerable surprise In view of the plentiful supply of funds. In the final dealings, however, selling was somewhat stayed by introduction Eof the Mellon tax reduction program in the house virtually as drawn by its author. Speculative sentiment was obviously treasured by this develop ment and a steadier tone characterized the close.
 one of the most impressive demon strations of the current rise occurred in Sthe steel group in the early trad ing, reflecting the increase in the coun- try's iron production in January for the first time since last July, and an output of 341 900 motor vehicles during the first month of the new year, an increase of 70 per cent over year enthusiasm into the market early by advancing sharply to q new top price of 109 carrying with 1t Sloss and Re. public likewise to new highs. When profit taking developed later In the day steel dropped to 1o7h. where Il closed.
 In the motors, Mack and White truck displayed strength on, the basis of last years earnings. Mack went up to 90% and White to 5sas, but dropped back to Ss1s and 577s, respectively. The ab- sence of any big drops, in spite oi heavy sales, proved to the satisfaction of Wall street that the market con- tinues Fundamentally sound.
 The remarkable display of strength in tho general list, continued through the noon dealings. with industrials and steels manifestfng the greatest activity. Gulf States Steel, which more than three times earned its A dividend last year, followed the other independ. ents into new high ground at S7h Talk of a higher dividend rate is per sistent.
 l Davidson Chemical snapped back tt 58h against a recent low of 46, reflect ing . covering movement of an exten. sive short interest. In the sugar group American Sugar advanced to record 1904 level on confident predictions oi satisfa ctory refining profits for this year. Oils and some of the recent lead ing industrial issues appeared to bs somewhat stale.
 l .s Advances In Exchange
 European exchanges began the day Il with good advances on advices from abroad that substantial progress wa. being made in the German financia I situation. Wall street expects '' some good news from the separations expert. yhortly. Francs were helped by tht vote of confidence in the chamber tC Poincare. Reaction developed later 1T the day, however. Sterling lost mos' of its gain and other continental bills showed net declines. Call money renewed at 4h per cent | but later firmed to 5h per cent. IT this connection the federal reserve board announced Thursday that ths discount rate structure would remain unchanged for the present. Time money market was dull, rates ranging iron AZ to 4& per cent. Commercial pape
 market was fairly active with the bull | of business being done at A per cent l The hardening of call money rate was due to rather heavy calling fol loans. Most of the calls came from out of the town banks in preparation for repayment of treasury funds to tho Federal Reserve. bank.