Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-02
FINANCIAL NEWS
NEW YORK MARKET
FEATURES Of the Days Dealings in All
the Leading Stocks

t.sEew York, May stock prices
made a favorable response today to
the reduction in the rediscount rate
rs the federal reserve bank Of New
York. While bear traders were In
cEned to cOnstrue this action a. on
ctal confirmation Of poor business, OPP
orators on the long side regarded 1t
AZ a stimulus to trade and succeeded
in regaining control of the price
movement. at least temporarily.
while the reduction was not alto
sether unexpected, II nevertheless
caused hasty retreat OF the nervous
short interests, particularly in such
stocks as American Can. Baldwin. u.
s. Steel and Studebaker. which closed
I to 3k points higher. Dismissal OF
the federal trade commissions COM
paint against the American Can
Company was a contributing factor
TO the strength OF that stock.
General Electric was the individual
feature Of the market, soaring moro
than 8 points to 221H On buying at
fributed to inside interests. Strength
Of this issue revived rumors that q
special dividend distribution was in
prospect, but these lacked oficial
Confirmation.
A bullish dem onstration In the to-
bacco shares just before the close re-
suited in Tobacco Products and
american Tobacco closing at net
gains Of and 21z points, respective
g.
Revival Of interest In the oil shares
Tas due in part to the relatively ia
yorable showing made in the first
quarterly statement OF some Of the
1argcr companies. Pan-American is
sues led the recovery with good gains
also being reported by tactic, Hous-
ton. General Asphalt and Phillips Pc
Il oleum.
Other individual strong spots In the
Industrial group were American
Agricultural Chemical preferred. Chi
cago Yellow Cab, God Dust. Wool
worth and Postum Cereal all Of which
moved up to nearly points.
The best showing in the railroad
group was made by the investment
issues. Norfolk and Western, New
York Central, Union Pacific. South
crn Pacific. Lackawanna. Lehigh VAL
ley and Atchison being among the
many stocks to close at net gains OF
point or so. Although bankers gen.
orally agree that the lowering of the
local federal reserve rate will result
in easier money. it's only effect today
was in the call money market. which
oi,ened at AZ percent and then drop
red successfully to 4, 3M and az.
The time money market was dull with
the shorter maturities available at
~ percent and the longer dates COM
handing Az. Prime commercial pa
Ter was unchanged. A. percent.
Observance Of the May Day holiday
L.. \ L. 81 h
trading in the foreign exchanges.
it,and sterling ruled about a of a
cent higher around s4.3S1s and
French francs were quoted just be-
low 6h cents.
sharp rallies In liberty bonds. which
mounted in unusually active trading
II the highest levels OF the year. to-
day measured the bond markets re-
sConse to the reduction in the New
York Federal Reserve Banks redis-
count rate. For the first time this
Year all active issues sold at par or
higher. while the treasury obligations,
known az the "Meiloi's," reached a
new price of l02, the highest ever re-
corded that the heavy buying of the
governments bonds wa sextended to
domestic corporation issues, which
scored substantial gains for the day.
despite the outbreak OF profit taking
ii the late trading. Sales. totalling
more than sl6.000,0 900, almost double
the volume Of the preceding day.
eauged the markets activity. Frac-
tiCnal recessions took place In the
foreign list. although Serbian IS again
duplicated their 1924 high and Boliv-
ian So were strong on reports OF a
new $4,000, 900 loan.
The scramble for liberty bonds
which developed at the opening of the
market. followed the payment of pre-
miums In over the -counter trading
as soon as the cut In the bank rate
was announced. The advance was &C
c.ntuated during the day by the drop
II. Cali funds to 3h percent. gains
amounting in some instances to more
than 80 cents for each 500 bond.
With these issues attaining new
high levels and short term securities
virtually disappeared from the mar
ket. buyers turned their attention tc
high grade and speculative railroad
mortgages. which capidly forged
ahead. American Telephone bonds
moved up in response to the 10 per
cent raise in telephone rates granted
Il, New York. Copper issues gave
the best demonstration of strength
among industrials.
Public offering Is expected within
the next two weeks of a 4o,63O,o0t
equipment issue to be issued jointly
by the New York Central, Big Four.
Michigan Central and Cincinnati
Northern Railroads. Local bankers
have underwritten n Sl6.00O,000 stock
issue by the Brooklyn Edison Com
many for which stockholders have
prior subscription rights. The $780,
600, 900 Bethlehem Steel bond issue
offered today; was over subscribed.
Total bond sales, par value, $l6.'
$4,000.