Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-10-17
Financial
NEW YORK MARKET
Features OF the Days Dealings in All
the Leading Stocks


the Leading Stocks
New York, Oct. 16.-(AP)-A
frenzied outburst of buying in the
motor shares, several of which were
run up to IL points to the high
est price ever recorded, infused new
strength in todays stock market
and sent it sky-rocketing again after
II mad shown signs of webbing I'M
DER an avalanche of selling orders
around midday. Total stock sales.
which fell just short of two and
three-quarters millions shares, broke
all records since the famous three
million share day" in December.
1916. The sensational advance in
the motor shares was accompanied
by unconfirmed rumors of open mar
ket buying for control, special divi-
dend distributions and capital stock
split-ups. In point of activity, Cen
eral Motors was the leader, running
up nearly 6 points to a new peak
OF ]32 IL on total sales exceeding
loo,OOO shares. Hudson, however,
scored the most spectacular gain by
soaring IL points to a new top at
lO4, the major part of the advance
Icing registered in the last 80 min
utes of trading. Yellow Truck, now
a General Motors subsidiary, was
run up several points to 50 and
Fisher Body climbed nearly six
points to new top at 11S IA. Stu
debaker, Dodge Brothers common
and preferred and Continental Mo-
tors. also exceeded their previous
1928 maximum quotations.
The market nnonod fairly ztropp
with numerous one to two point
gains registered in the initial trans
actions. Although sporadic profit
taking and bear selling was appar-
ent from the start, the market
moved steadily forward until around
midday. The marking up of the
renewal rate on call money to IL
per cent was followed by a wave of
short selling by professional traders,
which reached it's maximum inten-
sity in the early afternoon when a
. few specialties had been hammered
down four to nine points below their
earlier highs and scores of others
had yielded a point or more.
The subsequent lowering of the
call money rate to 4 IL per cent
and the revival of activity and
strength in United States Steel COM
mon and General Motors steadied
the list and eventually turned the
course of prices upward agai. The
late advance was by no means uni
form, several issues, notably Kinney
and Company, United Cigar Stores,
American Agricultural Chemical pre-
ferred, New York Gamers and In
ternational Paper showing signs of
acute weakness. Steel continued to
gather strength, moving uD nearly
three points to 127 IL, the highest
price since last spring, on total liens
exceeding 2SO,OOO shares.
Among the many issues to break
through to new top prices were
Cerro de Pasco, DUPONT, Allis Chal-
mers, and Brake Shoe, National
Cloak and Suit, United Drug. Loews.
Inc, Fox Film and Mathieson AL
kali. S. S. Kresge, which established
record high of 800 the other day,
showed an overnight loss of 20
points at 740 on few sales. A
sharp break also took place in Nc
Crory Stores B. which fell from
139 "a to 115 and then rallied to
11S for a net loss of 10 IL points
on the day.
Call money renewed at IL per
cent, dropped to 5 and then to 4 t.
in reflection of the return flow OF
funds sent to the interior to meet
Ocotber Is requirements. Time
money and commercial paper rates
were unchanged. e..
Foreign exchanges failed to make
any appreciable response to the sign
ing of the Locarno security pact
Demand sterling yielded slightly TO
$4.35 11-16, and French francs drop
ped to 4.42 IL cents and then rallied
to 4.47 1-2 cents on reported French
buying. Italian nre held firm above
400 cents with Indications that Ital-
ian government support had temper
arily "pegged" the rate around that
figure. Danish and Norwegian
kroner ruled aound 20.35 and 20.05
cents with overniht gains of 10 and
Is points, respectively.
Strength of foreign bonds today
contrasted sharply with the heavy
tone of United States government
obligations. while the main body OF
corporation issues held firm around
to relax in activity through diversion
of speculative interests to the stock
market.
Signing Of the Locarno treaty,
framed by the FIVE leading European
powers as a means of outlawing war,
was viewed in financial circles as
constructive step from both political
and economic angles and one certain
to strengthen the security back OF
loans of these countries.
Both French and German rs were
active and higher, the latter selling
within a fraction of the record high
price Of 80 12. Hungarian rs jump
ed points to a new top price and
Polish SIS gained l IL points on eX-
pectations that $15,000,000 loan
would be f1oated here before the end
of the month.
Price movements of industrial
bonds were conflicting. Agood de-
mand developed for packing. chemi-
cal and copper company liens, in
GLIDING Armour 1-2s. Virginia
Carolina rs and American Smelling
IS, but Skelly, Humble and other
petroleum issues receded after an
early period of strength.
Investment rail mortgages display
ed a steady tone but some of the
semi speculative issues yielded to
selling pressure. The contest be-
tween two opposing groups to control
the reorganization policies of the St
Paul Railway caused further selling
of this roads bonds, but losses were
limited to fractions.
Two liberty bonds-the LIS and
the LIS dipped to the lowest Levels
of the year despite indications Of
easier money.
Total sales $11, 100000.