Evening star., 1926-08-14
MARKET RALLIES
INTO STEAD|NESS.
Tendency to Sell Earlier in
Week Overcome in Late
Recovery of Buying.
By the Associated Press.

6y the Associated Press.
NEW YORK. August 14.-Specu-
lative interest in the stock market
shifted from the industrials to the rails
this week as traders endeavored to
forecast the probable effects of a
series of important business and
financial developments. led by the
unexpected increase in the New York
Federal Reserve Bank rate. OF al
most equal Importance with the
tightening of the credit structure was
the declaration of q SO per cent stock
dividend by the General Motors Cor
poration, the additional stock to share
in the next regular quarterly divi-
dend payment of S1.75, and the first
increase this year in the untitled or
ders of the United States Steel Cor
poration.
A reaction in stock prices started
early in the week on the theory that
the markets technical position had
been weakened by the recent spec
tacular advance in many issues ana
that a correction was necessary. This
was intensified by the increase in the
bank rate and the traditional selling
on the good news" which followed
the cutting of the General Motors
melon but sharp rally late yes
terday helped to revive speculative
confidence
Tendency to Sell.
1nasmuch as Wall Street has looked
upon previous increases in the re-
discount charge as means or apply
ing the brakes TO bull" speculation
in the stock market-post- -mortem
expla anations OF the drastic reaction
in March gave the previous increase
in the rate as one of the reasons
for the subsequent collapse in quoted
values-there was rather genera
disposition on the part of traders and
investors early yesterday to tighten
their holdings. particularly of securl-
ties which had enjoyed a sharp ad-
vance in the last few months.
It was generally conceded, however
that public speculation in the stock
market has been nowhere nearly as
offensive in the last two months as
il was earlier in the year and that
higher bank rate was a logical Sc
uuence to the increasing demand for
funds in connection with expanding
industrial activity and crop move
mcntS.
News Is Constructive.
Most of the weeks trade news was
constructive OF widespread interest
was the establishment of a new high
level for the year in loadingS of rev
enue freight: the Federal Reserve
Board's report of record breaking in
dustrial activity in the fiscal year
ended June 80; the reduction in stocks
of refined copper. bringing them to
the lowest level in years; the stiffen-
ing of kerosene and gasoline prices in
the Middle West. despite the large in
crease in crude oil production, and the
publication of another series of excel
lent earnings statements by wide
assortment of industrial concerns.
General Motors common. after
touching the record high figure of
125a4. broke below 200. but snapped
hack to 20S last night. United States
Steel common attained new peak at
1854 and rehounded To 1913. Atchison
was the leader in the railroad group.
soaring to a new record high level for
all time at 1904. Other rails which
established new peak prices for the
year during the week were Baltimore
& Ohio New York Central. Norfolk &
Western and Southern Railway pre-
ferred.