Daily Kennebec journal., 1925-08-17
Stock Strength
Carries Prices to {
Highest in HistOrvN

NC" Ioi ~ Aug. Io.-(API-a
sudden outburst of strength i, a !,
stock market which carried ths ~ ..s sas
eral industrial average to the hisssI ssnr
level in history and the general sasst = i
road average to the highest i..i. a.
since March 1911. the sharp reso., .ssel
in wheat and cotton prices wers ~
outstanding developments IN = .ns
weeks financial and comfnodi;.sss iss
markets. Bond prices held relativ.,y
steady with new offerings tots,,,ay ttsl,siy
less than $21, 100000. a new ing
record for the year. ~"
Speculative activity In the ~,
market was confined largely "a sA ~
rails and the high priced industr,asa,.' ~
such as American Can, Mack Trussss
General Electric, international Ts,s
phone and Westinghouse Air p,ss.
ell of which attained the highssss
Levels ever recorded. Buying ~ ~ :
rails was stimulated by PAWS sa0
of record breaking freight tr.aS
high current earnings and favor y,
merger developments. '''
The reaction in wheat folIowea
upward revision in earlier cron 80. ~
mates. while cotton reacted on ' !.
ports OF extensive rains in the so,.,
west. which are believed to baa.
hclpe1 the growing crop. Non =.
rus metal prices also showed moSs.
at improvement.
The case in the credit situat,o, :.
reflected in the higher balances a. -
large sums ayailabis for stock m.s
ket purposes. resulted in a lowar;s.
call money and softening OF tins @
money rates, after a Temporary s.;s
fening IN the middle of the weaL '
Foreign exchanges held relativs,r
steady, minor fluctuations characts,
izing. the quiet trading in Euronssa
curreEcies.
Further indications of recent IN
provenients in business came In ,iss.
last week with no new adverse ssa
tors developing to kill the cheerfl
sentiment prevailing in most lIrs, -,
trade.
Commodity were somewhat n,v.a
Despite record breaking gasoline cos
sumption, there was a further :. s;r,
or gasoline prices, particularly alors
the Atlantic Seaboard, in reflectio, !,
the apparent desire of refiners N ~
duce sur plus stocks of the prodns.
Further reductions are expected mn.
less there should be a marked fallIrv
off in crude production which show
ed another gain in the week sndsj
August over the week before.
Steel companies report expanding
mill operations with producers appa,.
entity more interested in maintai,iry
present prices than raising them
Tho decrease Of about 10000 tons N
the July untitled tonnage statsmsrt
or the United States Steel Corcora.
ton which was made public early m
the week, vas slightly larger than
expected and brought the orders an
hand to the lowest level OF .aa yea-
hut 81 Il more than 350,000 tons al Owe
those or the corresponding da.s last
year.
Establishment of a new high record
for the year by freight car loaJ:n.s n
1.-THE last week of July, incidentally tks
highest of any corresponding week
on record, provided additional proot
iHdL SpCuS were moving INTO c0n-
surnptlor in large volume. Lo,dinss
in OF merchandise and general freight
widely regarded as barcmetiic II
general business, were nearly 5s,o9s
cars above those of the same week IN
1923. Grain loadings showed a marx.
ed falling off.
Extensive automobile price cuts
have stimulated the sales of motor
cars with indicat tions that business n
the third quarter of this year will run
well above the corresponding period
of 1924.
Extreme dullness characterised iast
weeks bond market New Offerings
totalled only s2o,s0s,ooo the lowest q
any this week. as compared with
nearly $15.000.o00 the week befors
and s145. 100000 in the correspondents
week last year. Scantiness In the
supply of new issues was taken cd.
vartace or by investment bankers IN
cler,,u.- their shelves If scrie Of the
previously undigested offerings.