Douglas daily dispatch., 1926-08-13
UPWARD TREND
RESUMED ONCE
MORE THURSDAY
(By Dispatch A. P. Wire)


NEW YORK, Aug. 12.-Revival of
speculative and Investment interest in
the railroad shares, several of which
sold at new high levels, featured the
resumption of the upward movement
in today's stock market. Industrials
had a temporary sinking spell when
selling pressure was renewed against
some of the recent leaders soon after
the opening, but strong buying support
was quickly forthcoming and the sub
sequent recovery continued through the
rest of the session, with closing prices
generally around the highest of the
day. Two of the most important de-
! velopments of the day took place after
the close of the market One was the
declaration of a stock dividend of so
per cent on the common stock of the
General Motors corporation, in addition
! to the regular quarterly cash distribu
tion of $1.75, which will also be paid
on the additional common stock. The
other was the raising1of the New York
federal reserve rediscount rate from
l3h to per cent. The first change
since April %, when the rate was cut
from to 81.
Most of the days business news was
constructive in character, the federal
reserve board reported record breaking
industrial activity in the fiscal year
ended June 80, the department of labor
stated that the country was on fair
/ ly satisfactory employment basis,
stocks of refined copper were reported
to be the lowest in years, wholesale
! gasoline prices were advance done cent
gallon in the middle west and lead
/ ing sugar and rubber executives re-
ported Improvement in those indus
| tries.
Owing to the uncertainty regarding
the General Motors dividend, trading
| in that stock was of nervous charc-
ter. 1t opened 91k points higher, at
! 2O61b, advanced to 2O7 and then broke
to 29S. 1t subsequently sold down to
2O3 Y for small fractional net gain
on the day.
| Reports of an improved demand for
structural steel, following close upon
the publication of optimistic weekly
steel trade reviews, brought fresh buy
| ing into the steel group. United States
Steel, common, closed 2ss points higher
at 1505s, after having fluctuated be-
| tween 147k and 151. Gulf States and
Republic each advanced over point.
Buying of the rails appeared to be
based on excellent operating results for
the first half of the year and we'll
founded predictions TO record break
ing gross and net earnings on several
lines for the full year. Atchison soar
ed over points to 14615, the highest
price on record.
At the close of the market, the aver
age of 20 leading railroad issues was
at the highest level since' 1913.
The principal commodity markets
lost ground. Active wheat futures
dropped about a cent bushel on sug
crop estimates was too low. Cotton sold
! down 16 to % points on favorable
weather reports. Raw sugar was un-
changed and coffee closed unchanged
to points lower. Call money renew
| ed at 4 u per cent and held steady at
that figure all day. Funds were in
plentiful supply all day and some loans
! in the "outside market" were reported
as low as Az. Time money and COM
mercial paper rates were unchanged.
Renewed heaYiness of the paper
currencies of Europe featured their
regularly lower foreign market. De-
mand sterling was slightly easier,
around $4.S55s, with some of the selling
undoubtedly inspired by the increase
in British imports. French francs sold
down another points to around 2.7C
cents with small recessions also talk
ing place in the Bilgian, Italian and
Spanish rates.