Douglas daily dispatch., 1927-01-29
CREDITS REMAIN
RELATIVELY EASY
ON N. Y. MARKET
..
(X)-Ex-dividend 1.25.
(By The Associated Press)
lck market aVerages:

| NEW YORK, Jan. 27.-(H)-The PAN
icky retreat of an overcrowded short
interest in the common stock of the
Wheeling & Lake Erie railroad, which
scared 11h points to 651 and then
lost slightly more than half it's gain
overshadowed all other developments
in today's stock market. The general
list disclosed considerable irregularity
most of the standard industrials and
rails showing rather narrow changes
on the day. Trading was relatively
| light in volume.
Credit conditions continued relative
tly easy. While there may have been
some speculative disappointment at the
failure of the New York federal re-
serve directors to decrease the reds-
count rate yesterday the maintenance
of 4 per cent charge caused no sur
prise in conservative banking quarters.
The weekly statement OF the reserve
bank disclosed large drop in loans
and rediscounts, with resultant sharp
increase in the reserve ratio The RAJ
pidity with which new bond offerings
are absorbed, the underlying strength
of listed bonds in general and the pie
thora of funds available on call offer
striking testimony to the presence of
an enormous investment demand
The pyrotechncs in Wheeling &
Lake Erie resulted from an unexpected
demand for delivery of stock certifi-
Gates by brokers who had been ac-
cumulating the stock in the past few
weeks.
This aroused fears of a corner" in
many quarters, causing urgent short
covering in some issues and hasty
liquidation in others, but as more stock
became available for loaning purposes
the Wheeling situation righted itself
without any unpleasant circumstances
for the time being other than the huge
losses believed to have been sustained
by trapped shorts" At 65K, a new
record high, the common stock was
38A points above the 1927 low, closing
the day at 50. The preferred also
touched a new top at SIS and eased
to 63.
The weekly mercantile reviews re-
ported further Irregularities in the
business situation, although Dun's
found more definite evidence of ex-
panding operations in the closing week
of January, though the general level
of commodity prices was lowered. Rub
Der shares showed temporary out
burst of strength on buying influenced
by the belief that with huge inventory
losses of last year written off and
prospects favorable for increased sales,
in 1927 the industry was likley to be,
one of the few to show gains in earn
ings this year. Ajax touched 11%, the
highest price in months. Motors and
equipment showed temporary out
bursts of strength, but failed to main
tain their gains. Steels held firm
Oils were quiet, but fairly steady.
Aside from Wheeling & Lake Erie
issues, one of the most interesting
in the railroad list was
three point drop in Southern Railway,
which sold as low as 119.
Call money held steady at per cent
all day. Time money and commercial
paper rates were unchanged.
Except for decline of 1892 of cent
a pound in raw sugar all the principal
commodity markets gained ground.
Cotton rallied 81 to 25 points, with
some of the buying undoubtedly influ-t
enced by reports that recent sales of
certain lines of cotton goods exceeded
output. Active wheat futures advance /
ed fractionally Coffee closed un-
changed to four points higher.
Establishment of another new high
record since 1920 by Spanish pesetas