Evening star., 1925-03-04
COOLIDGE SPEECH
STARTS STOCK RISE
Presidents Message Greeted
With Renewed UpsWing in
Wall Street.
aY STUART p. WEST.


Special Disps tch to The Star.
NEW YORK, March Avail street
gave most of its attention today to
the proceedings at Washington. Two
thoughts were uppermost IN the
financial district One was that the
old Congress had adjourned and that
the new Congress which would come
together in December would be con-
stituted along lines much more pleas
ing from the conservative business
standpoint
The other thought was that the
Presidents inaugural address was
distinctly encouraging, that in gen
eral way 1t fitted in with the notion
which has been inspiring the security
market for the last four months
namely, that for four years ahead
business did not need to fear any
check from the center of government
Rail shares Respond.
The market Tor several days had
looked for the presidential address TO
be particularly cheering TO holders OF
railway shares, and when the con-
tents of the message became known,
1t was the rails which made the
readiest response. After a period or
profit-taking early in the day they
started forward under the lead of
Baltimore and Ohio, Reading and Le-
high Valley. Some of the oil shares
were very strong, but this was be-
cause OF developments in connection
with individual properties rather than
because of anything new happening
in the oil situation as a whole. The
oil group generally did nothing espe-
cially noteworthy on the day.
Special Issues Strong.
AS the afternoon went on, buying
in special issues was vigorously re-
sumed. Prominent among these was
American Car and Foundry, which, as
a large holder of American Locomo-
tive. will be in position TO declare
a larger dividend on its new stock.
provided American Locomotive does
the expected and increases the distri-
button on it's own shares. Ludlum
Steel was taken up again, and so was
Goodrich, the strength in the latter
communicating itself to some of the
other rubber shares. Some store was
set by the reduction in the rate on
standing call loans from Az to Az
per cent.
Little Worry Over Money.
This did not undo recent evidence
of hardening tendency in the money
market, but it did establish the fact
that the money situation, following
the increase in the New York Federal
all serious and, for the present at
least, was not likely to prove a check
upon speculative activities.
The foreign exchanges were high
all around, for no reason apparently,
however. except that recent opera
tions had resulted in the creation of
q short interest which was ready to
cover after nearly a week of decline.
Some light was thrown upon the i'm
proved European buying power by
the detailed figures on the January
foreign trade These showed, as COM
pared with the month last year, an
increase in exports to Europe of
S67,000,ooo, where imports increased
only s15,O00,0O0.
Crisis In Iron Trade.
The Iron Trade Reviews of the mid
week suggested that the critical test
was now at hand as to whether buy
ers, having pretty we'll run out on
their low-priced contracts, will agree
to pay higher prices which the steel
mills are attempting to exact for the
second three months. No precise in
formation Is vouchsafed as yet on this
point.
The attitude of consumers is de-
scribed simply as exceedingly eau
tious," at the same time that in some
lines, such as automobiles, strong
pressure is being eXerted to break
prices" This outworking of the steel
situation promises to be one Of the
most interesting developments in the
trade conditions of the next few
months.
Radio Stocks Active.
Radio Corporation stock was active
at higher prices, taking cognizance of
the earning possibilities as indicated
by the latest reports of gross busi-
ness. This is running at the rate of
between $75,000,00e and 500, 900, 900
a year. The Street has been making
highly optimistic predictions regard
ing net profits.
More light was thrown on the re-
cent strength in Hudson Motor by
the announcement from Detroit to-
day that the companys first fiscal
quarters shipments exceeded $4,000
cars Figuring on the basis of the
1924 net per unit rate of $50, it is
estimated that these shipments mean
profits of more than So a share for
the three months. March shipments
are expected to total $4,000 cars, as
against 1900 in February.
The action of Cosden & Co. stock
has given little encouragement to the
anticipation of favorable dividend &C
tion, which some people in Wall
street now have.