Evening star., 1925-08-07
RISE IN W R. & {.
HELD PHENOMENAL
Common Stock Jumps II IL
Points on Local Exchange.
Other Market Features.
BY CHAS. p. SHAEFFER.

A phenomenal rise of l2A points
to $50 on sales of but six 1oshare
lots of Washington Railway and
Electric common stock took place on
the local stock exchange this morn
ing. The advance eliminates week
OF huge daily rises totaling fiveday
advance of % points.
The rise would not be mystifying
If a single factor within the I'm Of
conception could be discovered 10
warrant an increase. officials Of the
company cannot, or will not, shed
any light upon the matter. processing
absolute ignorance of the psychic
force which is driving quotations on
ward and upward. The buying, sc
cording to best information available
Is from out of town. with the Norih
American Co. which already owns
IS per cent of the common issue. ex-
cepted.
f. J.. Dame, president of the North
American Co... in an interview handed
out yesterday declared his COMPANY
is in no way responsible for the
furore which has been created in the
stock. The North American Co. has
for some time owned rs per cent IF
the common stock of the Washington
Railway and Electric Co." he said
We have made no purchases at
creasinS our holdings
The issue closed at $50 bid +" with
no offers.
The bug" with which common has
apparently been inoculated has. thus
far. failed TO disturb the equilibrium
of Railway preferred. This issue was
active today to the extent of so shares
at 50. Capital Traction, in which the
North American Co is also interested.
sold at par and half
Riggs National Gains.
Riggs National Bank stock gained
fractionally to 35S on the initial sale
but later eased. off TO 357 on sales NJ
! 40 shares. MerGenthaIer Linotype
/ brought 1874, and Commercial National
Bank was firm al 1921 Eleven shares
of American Security and Trust
! brought 345.
/; Money rates are slowly hardening
/ Moody'S service finds in its weekly re-
! view of business. There is no deartn
! OF ioana BILE funds and no probability of
! any, but one may reasonably exDeCT
| that "cali money should be dcfinitely
] hrmer the last week Of the pres,lr I
month, and that time money should
show slow but persistent upward
movement into October anyway
/ Relating the money ma rket TO the
stock market. one must observe that
August is typically the last month Of
distinctly easy money. If present
monetary trends continue. borrowers
on collateral may find month or two
from now that the interest rate plus
I the stock brokers' interest profit. will
bring their interest paEments up TO a
relatively high figure.
Other Reasons for Optimism.
+ The remaining reasons for opti-
tmism concentrate themselves upon
this present month. Especially is this
true of railway stocks: for the August
and September net earnings should
make an exceptionally good showing
i which ought TO he reflected to some
feXtent in the share quotations.
4 Credits have expanded enough 50
| that idle capital can nreSuma bly, ind
employment without necessarily going
tinto the bond 1pdrleet Hence il j.
! likely that for some time the latter
should show sta abifily rather than eth
er weakness or strength.
London's Lower Interest Topic,
! Lowering of the Bank of England
! discount rate TO A.. per cent is inter
preted by leading American bankers
as indicating confidence on the part
of British tinanciers in the sta bili,l y
of the new Gold-standard program. a
digest of the mornings financial news
l-shoWs.
Dire consequences predicted I'm
i.many quarters following the return 10
a gold standard a few months ago
have not erialized-conversely the
English situation has improved ma
terially and the entire banking struc-
tUre greatly strengthened.
/ In some quarters the lowering nf
| the rate is seen as a concession To
L.
cluding industrialists and labor. which
| feared the new standard would be
detrimental to business. These be
lieved that burdensome money rates
would be necessary. while in other
| quarters the prospect OF attracting
gold from abroad was criticised as
| tending to bring about initiation.