Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-07-03
Financial
NEW YORK MARKET
Features of the Days Dealings in All
the Leading Stocks

New York, July 2-(H)--Undeterred
by the usual holiday adjustment of
speculative accounts, the stock mar
ket continued to forge ahead today.
Trading was featured by another
spirited buying movement in U. S.
Steel, which stretched forward into
new high ground for all time at
144 IL and the sustained strength
of other representative industrial
and rail shares.
Under the cover Of these advances,
however, various lines of stocks
were unloaded by professionals for
the three day recess although a more
important market factor was the
tendency Of short interests to cover
their commitments TO rthe same
period
The extreme gain of more than
two points in steel common was bas-
ed on revised estimates that second
quarter earnings would exceed
those of the first three months and
that the untitled tonnage. statement
due next week would make favor
able showing.
Some selling was occasioned by the
statement of George f. Baker, a
director, discrediting reports that the
stock would soon be split up and
placed on a. 81 or SIS annual dividend
basis. but the closing price of 143 rs
still left a gain Of / 5-8 points for the
day.
Independent steels followed the up
turn in the leader of this group, with
buying Influenced by much the same
factors. Outstanding strength was
shown by Republic, Inland and
United Alloy issues, which advanced
/ to ? points.
Motor and Chemical shares also
gave good exhibitions of group
strength. General Motors at one
time repeated its 1926 high price of
149 Ia although it closed only three
quarters of a cent higher at 139 IA.
Accumulation of the Erie Railroad
issues was predicted on the belief of
the company's income position would
be more secure under the revised
Nickel Plate merger plan which the
Van Sweringens are preparing to
place before the interstate commerce
commission. Directors of the Erie
are understood to have approved the
new program. Chesapeake and Ohio
was moderately higher and Union
PACING attained new top price for
the year. but other rails made little
Roadway.
A break of $3.50 to So bale in cot
ton prices following the publication
OF the government crop report, fea-
tured the commodity markets. Re-
coveries took place at the close with
pices ranging from 13 to % points
net lower. Wheat prices were
slightly lower.
Pronounced weakness of French
and Belgian francs, which collapsed
to new low records for all time at
z;oo L cents, respectively, unsettled
the foreign exchange market Crow
ing distrust in the financial stabli-
cation plans of these governments
accounted for the heavy selling of
the currencies. Demand sterling
eased off at Sass
Call money ruled at IL percent
all day, while time money and COM
merclal paper rates were unchang-
ed.
The bond market eased off into
its three holiday strikingly dull and
inactive.
Rather brisk trading in United
States government issues was the
sole feature of the session and even
their activity was marked by no
material change in prices. The wild
est variance was in the first las
which rose 532 of a point Up to
yesterday principal amout of $780,
curities was exempt from the feder-
al surtax, but today the amount was
reduced to $4,000 except for the
liberty 1-2s. This loss Of exemp-
ton is reported to have resulted in
some selling. but offerings were well
absorbed and the day closed with
out a definite showing of either
strength or weakness. A return of
cheaper money was held partly ac-
countable for the support Of the
government issues
There was fair buying in the for
eign list, Hungarian municipal 71as,
going to a new high at "a 1-2
Activity of several rail issues
which followed the stock market
gave a speculative 'tinge to the days
trading. Notable among these were
st. Louis-San Francisco income SIS
which set a new high at "a. They
tapered off later, hiwever, for a net
decline of one eighth for the day.
Averages for the day showed
very slight gain for secondary rails
with equal losses for the first grade
rails utilities and industrials.
Total sales were S11,176,000.