Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-04-23
Financial
NEW YORK MARKET
Features OF the Days Dealings In All
the Leading Stocks

( While rumorS of change III the
| New York federal reserve bank re.
| discount rate have been in circula-
tion for several days. the announce
ment Of a decrease from to 3 l..
| per cent which was announced
after the market closed. was some
| what of a surprise. However, il
merely brings the bank rate in line
with open market rates which have
| been steadily decreasing since the
| first of the month. Time msney
rates softened again today, being
| quoted at to 4 IA instead of 4 IL
| the rate prevailing yesterday
The senate's approval of the 1tal-
! ian debt settlement and the an
nouncement that the department OF
| justice had sanctioned the Tidewater
Associated Oil merger WE'RE two OF
| the most constructive influences on
today's stock market operations.
Other favorable factors included the
renewal of railroad merger negotia-
tons, which had been temporarily
suspended when the interstate COM
merce commission announced its re-
lection of the original Nickel Plate
consolidation plan; reports that the
warmer weather had stimulated sew
eral lines of spring business, and the
VI dDlC
earning statements.
The quarterly report of the Bethle-
hem Steel Corporation, made public
late in the day, came up to general
expectations, net earnings being
equivalent to $266 on the common
stock as compared with SLIT in the
preceding quarter and $1.66 in the
first quarter of 1925. U. S. Steel COM
mon and Gulf States Steel each
closed about a point higher, and the
Others in that group improved frac-
Iionally.
Buoyancy again developed in a
number of industrial specialties.
Remington Typewriter scared s
points to SO on reports of large cur
rent earnings, ciesing point below
the top. Net gains of 8 to points
also were recorded by American Re-
public, Coca Cola, Case Threshing
Machine General Electric. Pullman,
United Fruit and L. S. Cast Iron
Pipe.
The so-called Merger issues"
were again the favorites i'll the rail-
road group. Nickel Plate common
was run up IL points 10 15S,
Pittsburgh and West Virginia clos
ed more than A points higher at 1872
is after selling as high as 104 81,
and Rock Island. Kansas City South
ern, Delaware and Hudson and
Wheeling and Lake Erie preferred
all showed net gains of points or
more.
The advance in the oil shares was
held in check by reports of a sharp
increase in Mexican production last
week and by the discovery of a new
pool in the Salt Creek field.
Substantial gains were recorded,
however. by MARYLAND. Sinclair, Stan
clair, tandard Oil of New Jersey, At
lantic Refining and General Asphalt.
The principle commodity markets
lost ground. Active wheat futures
dropped one 10 3 cents a bushel on
reports that beneficial rains were
expected in the Spring wheat belt.
Cotton closed 16 to 10 points net
lower after an early rally, based on
unfavorable weather reports. failed
to hold. Sugar sprices held steady.
Coffee closed Is points lower to Il
points higher.
Call money opened at IL per
cent, the lowest renewal rate since
last September and held at that fig
ure all day. Lower rates were OBJ
tainable, however, in the outside
market" Prime commercial paper
held steady at IA per cent.
Belgian francs touched another
record low at 3.56 cents but the 9TH
er foreign exchanges held relatively
steady: Demand sterling was quot
ed around s4.S5 1916 and French
francs were slightly firmer around
3.34 cents. Japanese yen touched
another new high at AZ 3-S cents.
Changes in most of the continental
rates we're small and upimportant.
q
bond market in a steady stream to-
day, lifting the average of prices to
the highest level in several years
and swelling the volume of trading
to the largest single days total since
year ago last January.
The widely held belief that the
New York federal reserve re-dis-
count rate was due to be lowered,
which was confirmed after the close
OF the market, was responsible for
the unusual display of bullish sen.i-
ment. Time money, which has been
easing for several days. today dip
ped to the lowest rate since last sum-
mer, contributing materially to the
restoration of confidence among in
vestors and traders alike. Total
transactions exceeded s2O.O000 900.
Aggressive bidding for u S. govern
ment obligations. several of which
touched new top prices. provided a
gauge of the investment demard.
High grade railroad and public util-
;ty lieEs were taken in large blocks
with such standard issues as Atchi-
son General 4s advancing more than
point to the high price of the
year. Other o'--Standing points of
strength were Illinois Central 1-2s.
x =
Plate 1-2s, katy" first IS and Sec,
ond 4s, st. Paul issues and virginiar
Railway IS. The possibility of mer-
ger developments was an important
factor in boosting prices of most OF
these bonds to 8 LIZ points. Local
traction issues played prominent
part in the upturn of the utilities
with gains of l to 2 points also in
Guiding Consumers Power IS and
Public Service of New jersey IS.
Oils were the strongest of the yari-
Gus. industrial groups, railying brisk
ly IN response to the governments
approval of the Tidewater-Assoc
ed oil merger. Shelly s Fps jumped
3 SIS points and Sinclair SIS more
than point. Sugar and indepen-
dent steel bonds also scored good re-
coveries.
Trading in the foreign list was
featured by the strength of French
obligations, based on the possibility
that debt funding agreement may
be drafted in time for passage at
this session. Japanese bonds sold at
the highest prices of the year, CO..
incident with another rise in ex-
change
South American loans led in new
financing. A $4,000 s percent bond
issue for Argentina maturing in 1860,
VIII be offered tomorrow by ]. p.