Douglas daily dispatch., 1926-02-09

! Stock prices turned reactionary to-
day as result of the bearish inter
probation placed by Wall Street or
the huge volume of brokers' loans
| the federal Investigation of recent
food company mergers the withdraw
al of the Postum Cereal company s
! offer to purchase a majority interest
in the California Packing company
and the heavy calling of bank loans
/ which sent the call money rate from
| five to five and a. half percent
Nash Motors broke so points on
one sale of 100 shares. of the active
issues, California Packing was the
hardest hit, collapsing 231z points to
1921 and then rallying a point. Ward
Baking B broke over IA points to
661a and then snapped back to 69h.
Postum fell over points to 110 and
them rallied to 1925. Scores of other
issues closed 1 to points lower with
total sales crossing 100000 shares
for the first time since January 20.
Except in the food shares, which
were weak from the outset, the open
ing decline was an orderly one. Initial
losses in the popular issues ranged
from fractions to 8 points with a
good sized rally under way before the
end of the first hour. When the call
money renewal rate was fixed at 5
percent despite the large excess re-
serve shown in last Saturdays clear
ing house statement and it became
known that the government had
started antitrust proceedings against
the Ward interests and others, selling
pressure increased and gradually ex-
tended to the general list.
Motors, high priced industrials and
other specialties which, had attracted
a large speculative figure in the re-
cent advance, yielded readily to the
large influx of offerings, but 1T was
noticeable that little pressure was
being exerted against such standard
industrials as U. S. Steel common,
Baldwin, American Smelling, Standard
Oil of New Jersey, and the high grade
rails, the net losses in most OF which
were held to fractions. The average
of 20 leading industrial and 20 rail-
road issues showed only fractional
net loss on the day. Bullish opera
tions, however, were not altogether
abandoned. Texas Gulf Sulphur was
run up AZ points to 1914, closing
lust below the top; standard Gas and
Electric closed 35s higher at 50, and
California, Petroleum, Famous Players,
international Combustion Engineer
ing. the American Hide and Leather
issues, Y. S. Distributing and West
inghouse Air Brake all closed to
~ points higher.
Commodity markets also were reac-
tionary. Wheat futures broke sharply
presumably in sympathy with the
break in the baking company stocks,
May options closing over five cents
a bushel lower at 1922 Cotton
closed 2 to 10 points net lower with
some of the selling inspired by fav-.
orable weather reports. Coffee was
UNCHANGED to II points net lower and
raw sugar futures eased slightly.
Call money renewed at per cent
and then advanced to 51A, closing at
the top. Time money rates were
slightly firmer being quoted at AS
to Az instead of 51z to 55s. Prime
commercial paper held steady at Az
per cent.
Weakness of Canadian exchange
which went to discount of 1872 OF
one per cent, or below the theoretical
gold export point, was the feature
of the quiet exchange market. Little
gold is expected from Canada, how
ever, because partial embargo
against such shipments does not eX-
pire until July /. Demand sterling
ruled steady at $4.S1 lis but French
francs were heavy, falling points
to 3.891h cents. Moderate recessions
took place in most of the other Eu-
ropean currencies.