Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-03-05
Rush of Selling
Stops and Stocks
Rally on Exchange

| New York, March 4.-(By the Asso-
ciated Press)-The swollen streams of
liquidation which have been pouring
| into the New York stock exchange
from all sections of the country for
| over week dried up overnight and a.
sensational rally of five to 25 points
| took place today in scores of issues
when strong financial interests step
ped forward and began rebuilding the
shattered market structure.
| Judged by the averages, the recoys
cry was even more extensive than any
single days reaction which had pre-
ceded it. The average Of 20 leading
| industrial issues showed a net gain of
$50 points on the day, or more than
the combined net losses of PAP points
on Wednesday and 800 points on Tues
day when the selling movement was in
1ull swing. The average of 20 leading
railroad shares were thrown overheard
as a. result of the adverse Nickel
| Plate" merger decision an Ga loss OF
1873 points on Tuesday.
The buying movement, being under
the control of cool-headed financiers,
| Ne'fS iiioAC VI ~ the tSChltSS
selling of distressed pools and small
traders which preceded it, with the
result that trading was in substan-
| tally reduced volume. Total sales to-
day, as compiled by Associated Press
tabulators, were 1926, 400 as compared
with 3.7S5,700 shares in yesterdays
record breaking session.
Thousands of eyes We're focused
on hundreds of tickers in the finan-
cial district when the market opened
! Word had been flashed from the floor
! before the opening gong sounded that
offerings of stock had been substan-
| TALLY reduced and that buying orders
were in the majority. Prices bound
ed upward / to 5 points within the
! first few minutes of trading. This was
! regarded as a good omen. but was
not accepted as conclusive evidence
that the market had turned for the
! better. Professional observers want
ed to find out whether stocks would
follow through" on the rally, or sag
again under the weight of offerings
ATTRACTED by the higher prices.
| For several minutes the battle be-
tween opposing speculative forces
centered around L. S. Steel common.
! 1t opened at 123 IA, an overnight
I gain of ! SIS points. Bear traders,
knowing that this stock was support
ed by the strongest financial interests
in the Street, watched the sales and
noticed that they appeared to be
coming from widely scattered sources
in small lots.
Then, apparently acting on the be-
lief that the market was being al
lowed to take care of itself, they
started to hammer steel and forced
back to 122 Is. Offerings We're quick
ly absorbed and supporting orders
continued in volume. Meanwhile, all
other sections of the list We're forg-
ing steadily upward. Bear traders
continued to put out short lines, at
intervals, to test the character of the
buying, but their offerings were
quickly snapped up.
AS the session wore on, word was
flashed to all corners of the country
andto European capitals that the
break was over, at least temporarily,
and that a sharp upward movement
was in progress.
Reports Of some Of the leading wire
and commission houses showed that
both the so-called big and little fell
lows had been hard hit by the un-
expectedly severe decline. In many
cases, paper profits which had been
pulit up 10 nundfedS OF thousands or
dollars over period of months were
wiped out, or drastically reduced by
the violent drop in prices.
In the customers rooms Of the big
commission houses smiles again ap-
peared on the faces of small traders
whose furrowed brows and agonized
expressions previously had testified
to the nervous strain under which
they were laboring.