Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-12-21

NEW YORK MARKET
Features of the Days Dealings in
All the Leading Stocks

New York. Dec. 20.-(P)-Heayy
profit-taking resulted in the stock
market losing some of it's buoyancy
today, but large number of stocks
moved up sharply and the general
undertone was steady. Trading was
again in large volume with expanding
public interest.
While the selling movement was
natural several days of steadily ris-
ing prices. it probably was accelerat-
ed by the heavy calling of loans
which sent the call money rate up
from five to IL per cent. The
weekly statement of brokers loans,
issued by the New York Federal Re-
serve Bank after the close of the
market showed an increase of nearly
$54,000,000 in the week ended last
Wednesday.
The prospect of further "melon cut
ting by such corporations as allied
Chemical, Otis Elevator. American
Smelling, United Drug, Atchison,
New York Central, and Baldwin is
generally believed to be one of the
main forces behind the current up
swing in prices. The action of the
United States Steel directors in de-
claring forty per cent stock divi-
dend is believed to have paved the
way for several other distributions,
particularly those sponsored by the
so-called Morgan and Baker inter-
ests.
United States Steel Common closed
l 5-S lower at 157 IL while the new
stock, selling on q when issued :
basis, which was transferred from the
curb, sold between 116 rs and ia
5-S, closing at the low figure.
In the railroad group, Atchison
touched new record high at 40
and then slipped back to l2S l-2.
Reading common and second prefer
red, Southern Pacific and Canadian
Pacific eclipsed their previous 1926
top prices.
Another flock of new high records
was established in the Industrial and
speciality groups, the list including
Allied Chemical, Corn Products, Ma
tlonal Biscuit, Eastman Kodak,
United Drug, marlborough Rapid
transit; Brooklyn Manhattan Tran
sit. American Smelling preferred and
Warren Brothers, the last named
scoring an extreme gain of over six
points on the announcement of a
S'o,oVO,000 contract with the Cuban
government. Heavy trading in Radio
corporation was associated with
rumors concerning the company's de-
Velopment OF new talking motion
picture.
Banks called about s15,000,0OO in
loans, which was expected in view of
! the deficit in reserve shown in last
saturdays clearing house statement.
establishment OF a new 1925 high
level for French francs at 4.O6 IL
cents overshadowed all other de-
Velopments in the foreign exchange
market
Commodities held steady in quiet
tradlnS. An increase of over 100, 900
bales in cotton ginned prior to
December IS, as compared with the
same period last year, proved to have
been discounted by the cotton market
which closed one point higher 70 five
points lower.
Bond prices remained around the
best Levers of the year although trad
ing was dull and most of the changes
were insignificant. Indications that
the huge holiday demand for cur
rency would hold money rates firm
for the rest of the year and the
greater speculative attractions of the
stock market curbed Luying actiyi-
ties.
A rise in the franc to a new high
record for the year failed to slim
ulate interest in French bonds, most
of which worked lower along with
Belgian and Italian obligations.
Active bidding for the local trac-
ton issues, particularly INTERIOR
ough and Third Avenue Railway
liens, was based on reports that SER
ious consideration would be given by
the transportation authorities to an
increase in fares. Intefborough IS
and Third Avenue adjustment 5s
gained a point or more.
Traders and investors were dis
eliminating in their choice of railroad
and industrial bonds. Some of the
Baltimore and Ohio divisional issues
were strong an da good demand was
noted for several of the New Haven
obligations, Katy" fives A, Peoria
and Eastern income tours. Rio
Grande Western As and Wilkesbarre
and Eastern IS.
A s4,500,000 loan for Bulgaria. part
of large international issue. will be
marked mere this week. The offerin-.
which will be made by Speyer and
Company, will mark the Thru
European loan sponsored by the
league of nations. A SS,000,000 issue
of twenty year seven per cent bonds
for the department of Cundinamarca,
Colombia, will be offered tomorrow.
Total sales were s12,64S,o 900.