The Washington times., 1924-08-09
PROFIT TAKING
HALTS RISING
MARKET
Upward Movement of Prices
Retarded by Sale of Oil
and Industrial Shares
By w. s. COUSINS,
International News Service,

NEW YORK, Aug. 9.-The prog.
ress OF the upward movement Of
stock pricess was =. retarded this
week by profit-taking in the rail-
road. and industrial shares, and the
evident unwillingness Of stock
traders to enter heavily into com.
mitments on the long side Of the
market, at the prevailing price
levels. Most of the important
financial developments came late
in the week, when the speculative
district was deserted by many of
the large traders whose activities
have an important effect on price
movements.
Sterling Rises.
The exuberant rise of sterling
exchange quotations after the close
Of the market on Thursday, and
the marking down of Federal re-
serve re-discount rates in New
York to per cent, the lowest in
the history of the system for
ninety-day paper, at the same time,
reflected important developments
which will have a profound influ-
ence on domestic and foreign in
dustry in the future. Sterling
jumped cents on Thursday on re.
ports that all objections to the i'm
mediate putting into effect of the
Dawes plan had been removed. The
marking down of reserve rates is
significant in that it makes New
York the cheapest international
borrowing market in the world.
Rail Merger.
A semi-official statement, in ad.
vance of approval by stockholders,
gave an outline of the general
terms under which the MCKEE Plate
railroad merger was to be Carried
out. While not authentic, it is
said to represent the views Of
bankers represeting the various
companies, and will doubtless serve
as basis for re-aligning prices Of
stocks in the stock market in the
Immediate future. Nickle Plate,
Pere Marquette, Chesapeake and
Ohio, and Erie were among the
most active of the railroad shares
this week, and prices recorded new
highs for the year.
Industrial stocks were held in line
by the strong action Of Il, s.
Steel, General Electric, Baldwin and
other high-priced stocks, which
served as a good background for the
profit-taking which was INDUCED in
elsewhere in the list. U. S. Steel
went through to new high at lie
In further reflection Of it's exceed
ingly favorable second quarter and
its subsequent increase in operating
rate. The plants are now operating
at 55 per cent Of ingot capacity,
against AZ per cent last week and AZ
per cent in the preceding week.
American Can also made a new
high record on high volume sales
partly attributed to short covering.
Developments Favorable.
Industrial developments Of the
week were generally favorable.
Commodity prices showed a ten
dency to make up some of. the
losses sustained earlier in the year;
economic reviews without exception
testified to the gradual revival of
activity in a number Of the i'm.
portant manufacturing industries,
notably the steel trade. The United
States Steel Corporation is operac.
ing at SO per cent capacity against
AZ per cent few weeks ago and
big Independent steel companies
have reopened mills closed down in
April. The same is true of the
textile industry, which in the last
few weeks has added thousands of
new spindles to it's active list.
The feature of the outside in
vestment market was the strength
in foreign government bonds and in
unlisted bonds Of companies which
are most likely to benefit from a
revival of European trade. Grain
and cotton markets were somewhat
unsettled, owing to the hot dry
weather in the agricultural sections
of the country, and the apparent
disagreement Of experts with re.
spect to crop yields. Sentiment in
the speculative district is cheerful,
the general expectation being for a
renewal Of the upward movement
in stock prices as soon as realizing
sales have been comnIetad