Evening star., 1925-08-08
BY STUART p. WEST.
Special Dispatch to The Star.

BY STUART p. WEST.
Special Dispatch to The Star.
NEW YORK, August 8.-Interest in
the financial situation during the past
week has been divided between the
happenings on the Stock Exchange,
where the price averages established
a high level for the year, and the un-
expected reduction of the English
bank rate from to Az per cent.
The effect of the action of the Brit
ish authorities upon our own securi-
ties markets was purely sentimental,
for money rates on this side were
unchanged. On the other hand, what
ever fear Wall Street had professed
over the possibility Of an increase
at this time In the New York Federal
Reserve rediscount rate was aban-
doned following the Bank Of Eng
land cut.
Stocks Move Upward.
Accordingly the share list, which
for months past has been Influenced
by the abundant supply Of money, re-
sumed its upward swing. Vigorous
upbidding Of United States Steel COM
mon. together with many other stand
ard Industrial and railway issues, en-
couraged speculative operations and
the market broadened out.
Short covering and new buying
struck a lively pace. The average
gain for the entire Stock Exchange
list exceeded 81 as compared with the
week before and was pretty close to
$40 higher on the year.
Good News" Not Registering.
Prior tc the announcement of the
Bank of England the feeling had
spread that the market was not re-
spending to good news" as readily
as had been expected. There had
been advances in oil and metal prices.
the steel company reports for the
second quarter had surpassed the
highest estimates, and the general
run of trade news had been encour-
aging. Yet these as a rule had fallen
fat
The speculative community evil
IDENTIFY had been concerned with the
money situation and when IT saw that
nothing extraordinary was to occur,
1T was reassured. The argument that
bonds had been held in check on ac-
count Of the uncertainty over the
New York Federal Reserve redis-
count rates was shown to have been
a poor one. While stocks were NOV
ing forward toward the close of the
week. the bond market was scarcely
ohoStcd Wy lic iiOhcN Hidihct uc-
velopments.
Reserve Ratio Drops.
The weekly statement of the Fed
eral Reserve Bank of New York dis
closed an increase of $4,000 900 in
rediscounts for the period and re-
duction in the reserve ratio on the
week from s5.5 to 79.5. This was a
sharp decline. yet 1t failed to exert
any unfavorable influence.
The big demands on the New York
banks reserves because Of the record.
breaking stock market activities and
the approach of the time when crops
will have to be financed and more
money will be needed with the season
al expansion Of trade, were over
looked.
Rails Prove Feature.
The railway shares. notably the
stocks Of companies constituting the
proposed Nickel Plate system, were a
feature. When it became known early
| in the week that the President in
terded to make railway consultations
one Of his most important domestic
policies, the carrier stocks came to the
| front again.
| Then 1t was rumored that the In
i terstate Commerce Commission soon
would render a decision in the Nickel
Plate case. and from the action Of the
Nickel Plate group and OF other rail.
way issues OF the class OF the New
York Central It appeared that financial
interests were expecting that decision
to be favorable.
n the last fortnight railway car
| loadings have been above the million
mark again. and this has contributed
/ to the budget of encouraging news
concerning the transportation indus.
try.
Lagging Seen i'm Oil Shares.
The Oil trade data were conflicting
and held back the oil shares. In fact.
the greater part of the week they were
distinctly reactionary. Statistics
showed increases in output OF crude
oil, and there were misgivings over
! the accuracy of official figures on gas.
oline in storage.
| Crude oil price reductions were an
nounced in various sections Of the
country and the belief was that gaso.
lire quotations would be cut. These
views were not generally held, how
ever, but II was significant that with
other important industrials swelling
the price average the oils with which
the public Is we'll supplied were the
| noteworthy exceptions.
Industrial Shares Active.
An incident of the week has been
the spectacular rise in a number of
| high.priced industrial shares of the
tyoe of General Electric. General
Railway Signal and Mack Trucks
| EVERYMAN'S