Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-21
FINANCIAL NEWS
] m
NEW YORK MARKET
Eeafurss Of the Days Dealings In All
1870 the Leading Stocks

s New York. May 20.-Enactment Of
& the soldier bonus measure over the
president's veto brought flood OF
keeling orders into today's stock mar
-ket, prices of active shares breaking
q to 6 points at the opening. recover
ing half their losses before noon and
then slipping of again 30 that clos
ing quotations showed net losses
ranging from / to IA points.
The break in prices. which was
one OF the sharpest in many months.
naturally resulted in the closing out
OF q number OF weakened marginal
accounts, particularly OF pools. but
there was no widespread liquidation
on the part OF small investors, total
sales running we'll below a million
shares
Thirty-two stocks tumbled to new
low prices for the year, including
such favorites as United States Steel
common at 95; Baldwin at 104 3-S;
udebaker at 3 Oh; General Mo-
tors at II 81: Stewart-Warner at
"a: Anaconda at 2S IL; Dupont at
112; United States Industrial Alcohol
at 81 Is and United Drug at 73.
several of these closing a point or so
above their bottom figures OF the
day. In addition, a number Of stocks
duplicated their previous minimum
prices including American Tele
hpone. which dropped, more than =
points to 123 on announcement OF a
$15O.0OD. 900 stock issue.
Heavy professional selling of
stocks was based on the speculative
belief that the soldier bonus meas
are would be a heavy drain on the
United States treasury and would
preclude the possibility OF any sub
sstantial tax relief. thereby having
restraining effect on business. In
dications that this belief was not
altogether general were seen by some
traders In the character of the buy
ing orders that appeared during the
day and the absence of heavy
liquidation by investors.
On the initial burst of selling Du
Pont and United States Cast Iron
Pipe broke six points each. while
Baldwin. American Can, General
Electric and several others dropped
three points or more. When bear
traders discovered however. that
they had failed TO dislodge much
long" stock. n brisk covering move
ment set in which wiped out about
half the losses. Inability or unwill-
ingness OF operators on the long side
TO follow through on the rally. en-
Couraged another wave of selling by
shorts in thaHearly afternoon during
which United States Steel, Baldwin
and "a few others touched their low
prices.
Circulation in the financial dis
trict of statement by Senator
Smoot that the tax bill would he put
in shape by the senate and house
Conferees so as to gain the presi-
dents approval and the appearance
OF t. brisk demand for Chesapeake
and Ohio. which touched a new 1924
high at rs :i-S started another COW
erinS movement just before the
close. New Orleans. Texas and Mex
leo advanced three points to III L..
also u new high for the year. in re-
Election OF the declaration of a spec
ial dividend of IL l.. per cent in
connection with the acquisition of
the control OF that road by the Mis-
souri, Pacific but ii forfeited two
points OF its gain on profit taking.
can money held at per cent all
day. The time money market con-
tinued dun with most OF the business
being transacted at 80 days at 4 per
cent. The commercial paper market
was steady with prime names COM
handing Il per cent.
Foreign exchanges were slightly
reactionary in quiet trading. A fur
Their drop OF ten points in French
francs to around > 3-S cents was re-
Eardcd in some quarters as indicat-
ing free market" for that cur
rency. Demand sterling eased slight
~ to just under S4.56.
Unsettled by passage OF the bonus
4. l..N "A lost
today displayed weakness in the
early dealings but later recovered
most OF their losses. Selling pres
sur at the outset was concentrated
on Liberty bonds. causing recessions
of as much as half a point. Quick
rallies. however. brought quotations
back to near yesterdays closing
levels.
Investment bankers were not in
clned to fear that the bonus action
would have any serious effect on the
bond market. Easy money, 1t was
said. had created fundamentally
sound basis for Investment buying.
which would not be seriously i'm
paired even by the retarding in
fluence of the bonus and trade. The
fact that no immediate financing
was contemplated by the govern
ment, III was 1elt, might DC CoHsIu-
cradle favorable.
New financing today absorbed
quickly despite the general uneasi-
ness in trading circles. Bankers dis
posed OF $4,000, 900 Great Northern
IS due in 1913. at a price OF 81 L.
to yield 5.45 per cent. without re-
course to a public offering. Proceeds
will be used to reimburse the roads
treasury. A good demand was re-
ported for the S9.250,0O0 Czecho-
Slovak bonds. Preparations have
been completed by bankers for Of
fering OF the New York Central
equipment issue, which awaits only
the authorization of the roads Of
f,cials. A 100000 issue OF the Fed
Grated Metals Corporation 10 year as
will be sold tomorrow at par.
Price changes generally were OF
little Importance today. An advance
in "Nickel Plate" 6s was believed to
reflect preparations for an additional
bond offering. wickwire Spencer Is
further following official recon-
mendations of a readjustment OF the
company's capital structure.
Total bond sales (par value) $lS.-
$4,000.