Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-05-04
NEW YORK MARKET
FEATURES of the Days Dealings in all
the Leading Stocks

New York. May 3.-(By the Asso-
stated Press) .-Reactionary price
n,ovements swept over all financial
md commodities markets today in
rejection of the apprehension
sroused by the threat of a general
strike in Great Britain.
Stock prices opened 1 to points
aower. but rallied briskly on the ap-
nearance of strong buying support,
roncident with the lowering of the
renewal rate on call money. Fresh
selling broke out during the early
afternoon when Wall Street receiv-
Cd extracts from the speech of
premier Baldwin, most of the active
issues being forced down below their
morning lows. the extreme declines
in scores of issues running from -
N 10 Il points. A closely rally.
insnjred by the more optimistic ten
nr of the late cables, wiped out part
NJ the earlier losses. net declines
ranging from one to seven points.
Wall Streets time honored maxim.
Never sell stocks on strike news"
WAS disregarded in this case, pre-
snmablv because of the seriousness
with which the present labor con-
Aict was taken in British official cir
cles. Premier Baldwin's reference to
the government findings itself chal-
Ienged by an alternative govern
ment" having a depressing effect on
speculative sentiment. Among bank
ers. the ability of England to MAIN
lain the gold standard, if the strike
cipal subject of discussion and while
no attempt was made to minimize
the seriousness of the situation,
tbat the crisis would be of short
duration.
General Electric was the hardest
hit. breaking 10 ID points to 81 1-2,
and then rallying to SO. L. S. Steel
cannon dropped nearly 3 points to
30 is but snapped back to III. Net
losses of four points or more were
recorded by such widely diversified
industrial issues as Atlantic Refining,
case Threshing Machine, Dupont.
Mack Trucks. South Porto Rican
Sugar, L. s. Cast Iron Pipe, United
Drug and WoOlWOrth.
Scores OF other popular issues
such as Allied Chemical, Anaconda
Copper Baldwin, Famous Players,
General Motors, Montgomery Ward,
Postum Cereal. Pullman and White
Motors closed > or more points low
er.
Rails yielded with the industrials
although the losses generally were
NOT as large. Atlantic Coast Line
iotc rs
rallied to 1876 IL while Chesa peake
and Ohio. Chicago and Northwest
ern. Delaware and Hudson, New
York Central and few others lost
two points or more.
Demand sterling fell nearly a cent
below last weeks high figure. which
was in striking distance of parity, to
S4.S5 10 French and Belgian francs
touched record low levels at 81 and
32S cents. respectively, but both
made slight recovery. Norwegian
exchange ruled over 10 points high
er around Sc cents, but most of
the other European rates showed
moderate receSSionS.
Active wheat futures broke to
3 cents a bushel the May option
closing at S16i Is a bushel. Cot
ton futures showed good resistance
TO selling pressure. closing only = to
points net lower. Raw sugar ad-
yanced 1-32 of a cent a pound but
futures were slightly easier. COZ
fee advanced ) to 70 points.
Call money renewed at 3 IL per
cent, as against IL per cent Fri
day, holding steady at that figure
all day Time money and CONNER
cial paper rates were unchanged.
A sharp downwar dmovement in
bond prices. beginning with the for
eign issues and gradually spreading
over the entire list, today measured
the markets uneasiness over the M
pending general strike in Great
Britain. Aside from United King
dom oblisations. the British crisis
could not be said TO have direct
bearing on bonds, but the potential
dangers of the situation undermined
the confidence of investors and'caus-
ed considerable liquidation.
Selling of the United Kingdom
LIS was not particularly heavy,
but in the absence of buying support
both issues sank point or so to
new low levels for the year. Win
French and Belgian exchanges fall-
Ing to record lows. the bonds or
these countries also turned weak,
some Of the French municipal and
railroad liens reacting ! to points.
The decline was attributed partly 10
reports that bankers would exact
sitter terms in granting future
loans to their governments and IN
dustries.
All classes of domestic bonds were
subjected to selling pressure, with
The most pronounced heavlness
shown in those issues which, by
their recent advances, naturally at
lracted realizing sales. Skelly oil
LIS, carried to a new high level
last week by merger reports, slump
ed six points and the latest gains OF
| to , points in the local traction
issues We're wiped out. American
sugar 6s, Ajax Rubber IS, Anaconda
copper 6s. and sevens ard other rep
fesentative industrial issues were
heavy.
Sales Of high grade railroad bonds
We're believed to be for the account
VI British interests who have always
oeen heavy investors in these Secur-
lues. The action was explained on
tne ground that it would result in a
more liquid financial position in the
event that full resources would be
Iequlred to combat prolonged
strike. Atchison General as. Balti-
more and Ohio general 5s, Missouri
racltic first 6s, katy adjustment
o., Northern Pacific As. and Norfolk
ana Western convertible 6s were
among the conspicuous heavy spots.
several small pieces of financing