The Indianapolis times., 1927-02-04
DAY CLOSES WITH
LEADERS HIGHER;
BEARS SURPRISED
Range Extends From Two
Points Off to Nine
Gained. xh
BY Elmer c. Waller.

Manager United Press Financial Service
NEW YORK, Feb. 4.-Further en-
couragement was given constructive
forces on the stock exchange Thurs
day in various reports and rumors
with the result that in spite OF re-
newed attempts to depress the mar
net leading stocks closed the day
higher. Prices were irregular. how
ever, with gains in the ascendancy,
some running up TO more than nine
points and losses in some cases over
two points.
Baldwin shot ahead nearly nine
points and Case Threshing Machine
scared more than nine points. Read
ing took the lead Of the rail group,
reaching new high record since
1917 with buying based on the pros
pect the dividend rate would be ad.
vanced; General Motors stood out in
the industrials as rumors crept into
the Street it would be put on an SO
basis, compared with 81 at present;
Timken Roller Bearing made a new
high after it was learned the busi-
ness was worth a billion dollars.
Sugar shares made remarkable gains
rising with the increased optimism
in the local sugar market; amuse-
ment stocks fell off slightly; Steels
were higher and Oils held steady.
n Bears Get Drubbing
Bears received another drubbing in
Wheeling & Lake Erie shares when
the loaning rate was raised to IL
per cent, sending the issue to a new
high level. This figure was subse.
quently reduced to II per cent and
the stock closed at its high Of 70,
up Al.
Strength in United States Steel
common is not only based on the in
creased activity in the steel business.
but is also influenced by the report
of untitled tonnage of the corpora.
ton to be issued on Feb. 10. While
no considerable discussion has been
heard regarding the figure, it. is
pointed out that a small reduction
would not cause apprehension, while
an advance would do much to aid
the stock market.
Shortly after the Steel Cooperation
makes it's tonnage report another
week will have gone and another
meeting of directors of the New York
Federal Reserve Bank will be in
session.
Rate Reduction
The Street confidentially expects
the local rediscount rate will be re-
duced at this time. The subject re-
ceived a dampening Thursday when
the Bank of England failed to re-
duce its rate, but some encourage
ment was drawn from the cut by the
Bank of France. Montagu Norman,
governor Of the Bank of England, is
en- route home, after conferences
here with banking interests. On his
arrival it is expected the English
rate will be reduced. and that the
New York bank Will immediately
follow suit. The coming week may
see further advances in the market
with the bears cleaning up their
short commitments in anticipation
of a speculative burst of bullish
activity with a lower rediscount
rate.
Bond buying continues strong and
new offerings are still coming in at
a record rate. Some proft.taking is
in evidence though this is natural
in view of the recent sharp gains
throughout the list. Thursdays trad
ing saw further advance in French
issues while domestic bonds were
quiet and about steady. Curb stocks
also were irregular with several
special issues reaching new highs.
Cotton advanced while grains lost
fractionahy after May wheat
reached a new high for the year.
Foreign exchange was about steady
with Spanish pesetas a weak excep-
ton, dropping 1715 points. Silver
scared to new high records for the
year, sending silver currencies
higher.