The Washington times., 1924-08-16
MARKET
HAS ACTIVE
WEEK
Short Selling In Early Part
Of Week Followed by
Vigorous Rally
By w. 9. COUSINS
International News Service
Financial Editor

NEW YORK. Aug. 16-Moderate
reactions on profit taking and a
resumption Of short selling took
place the first part of the week;
but this followed and the end Of
the week witnessed the beginning Of
another rally in prices which car"
ried many stocks to new high pricd
levels for the year.
The succession Of million share
days, which featured the two pre-.
vious weeks, came to an end, and
the volume Of stock sales declined
to below 5000 shares daily as the
marking down Of prices failed to
bring any large quantity Of stocks
on the market. The halt in the
upward movement Of stock prices
had been frequently predicted and
traders were cautioned against com.
hitting themselves on the long side
Of the market after a long and al.
most uninterrupted advance. With
the stock market largely dominated
by professional traders and the
public still conspicuously absent,
there was a natural dearth of buy
ing power when sellers began to
deluge the market with selling
Rails Active.
With merger railroad stocks fairly
well exploited, and large investors
giving more attention to the stand.
ard dividend rails and industrials.
speculative attention was again
diverted to stocks of roads which
had not figured prominently in
rumors Of new combinations, or Of
changes in dividends. These in
cluded Frisco, Missouri Pacific.
Southern Pacific, Rutland preferred,
and others, in which active buying
was resumed.
Copper and motor stocks responded
in better shape to the constructive
developments in the respective indus.
tries; oil stocks were still held back
by excessive production. 1t is al,
most proverbial in the oil stocks that
as soon as a modest boom gets under
way prices of crude oil and gasoline
are slashed and the uphill climb must
therefore be begun all over again.
The hand Of the pool operator and
the professional was plainly evi.
dent in the sharp forward move
ments Of prices of high priced spe.
cialties, which apparently are being
used extensively as a bell wether
Of the market. Drives against these
stocks assistd profit taking in the
first part of the week, and sharp
rallies were expected to improve
buying sentiment in the later ses-
sions. Short sellers were given a
setback in such stocks as Atlantic
Refining and General Electric when
the late rally was in full force,
Railroad equipment stocks led a
spirited advance on Thursday, Inn.
PEELED by the higher operating rate
Of the leading companies and the
reports Of heavy equipment buying
for 1924 delivery.
Reports Favorable.
Industrial and business reports
Of the week were almost invariably
favorable, and European develops
ments the most constructive, mar
ket-wise, than perhaps any that
have taken place since the armi.
stice. European political leaders
recognize the disastrous results
which would follow failure of tho
present negotiations and the in,
evitable settlement Of the European
tangle will greatly increase the
foreign business OF the country.
AS a result Of large increases in
the movement Of grain and miscel-
laneous merchandise, car loadings
for the week of August 2 estab-
lished a new high record for the
year, the total loadings for class 1
roads being 945,731. Wheat and
cotton markets were strong on a
slight decline in activity. Sterling
exchange continued its rapid ad.
vance into a higher position and
now occupies the best rating of
the year. Recognition of easier
money conditions at interior points
is seen in the decline of the reds.
count rate of the Federal reserve
bank Of Cleveland from to 81
per cent. The flotation Of q, SIS.
100000 bond issue for a prominent
Cailroad company at 8 per cent was
one Of the achievements OF the in
vestment market this week, consid.
ering the fact that the bonds sold
half q point higher in the open
market Immediately after the clos
ing Of the syndicate's books. In
dustrial production showed a slight
increase during the week. the most
notable being in the steel industry,
and commodity prices were gener.