Douglas daily dispatch., 1927-04-30
FORM REVERSAL
MARKET FRIDAY
SHOWN ON STOCK
tBv the Associated Pressl

NEW YORK, April 20 R.-stocl1
prices displayed a complete reversal
of form today, selling off sharply in
the morning as a result of heavy liz
quidation of impaired marginal ac-
counts and then rallying briskly on a
resumption of widespread speculation
for the advance and short covering
Final quotations were generally higher,
with numerous net gains of l to 4
points interspersed with smaller
number of losses.
The recovery took place in the face
of marking up of the call money rate
from A to Az and thence to 5 per cent,
coincident with the. calling of over
$25,000,000 in loans. The higher call
rate was generally regarded as tenn
porary and incidental to the heavy
month-end and weekend demand for
funds. The rally, like the reaction
which precede it, had little relation to
current news developments, but prob
ably was influenced by the belief that
the recent decline had sufficiently cor
rected the weakened technical position
of the market, at least for the time
being.
The weekly mercantile reviews char
acterized business as fair They con-
slider it still too early to determine the
effect on trade and agriculture of the
Mississippi river floods. Several more
quarterly earnings reports made their
appearance during the day, the Rock
Island railroad and Chrysler Motors
~, !.
comparison with those of correspond
ing period last year, The first 70 rail-
roads to report their March earnings
show a decline of near $3,O0O,000 in
gross compared with the same month
last year but only slight drop in net.
General Motors was prominent in the
rebound today, rallying from low of
1854 to 1901 for net gain of "
points on the day. United States Steel
common rallied from 166 to 16S. Sub
stantial gains were registered by
American Can, Baldwin, Case Thresh-
ing, Childs, Commercial Solvents B.,
Dupont, Houston Oil, Goodyear pre-
ferred, international Harvester, Mallin-
son, National Biscuit, Republic Steel,
South Porto Rican Sugar, U. S. Cast
Iron Pipe, U. s. Hoffman Machinery,
Western Union and White Sewing Ma
chine. American Water Works and
Hudson and Manhattan attained new
peak prices for the year.
Early selling pressure was particu-
1arly acute against the oils, nearly a
dozen of which sank to new 1927 lows,
but they later rallied with the rest of
the list. Continental Baking and Peer
less Motors also broke through their
previous minimum prices.
Bangor and Aroostook, which re-
corded sensational gain earlier in the
week, opened 21s points higher at 94k,
a new peak, sold down to 81 and then
rallied to 49,. Rock Island, Chicago
Great Western preferred and Seaboard
Air Line We're prominent in the up
swing.
Time money and commercial paper
rates were unchanged.
A sharp rise in wheat futures based
on an upward revision of export esti-
mates featured the Irregular commo-
dity markets. Cotton moved forward
at the start but encountered profit TAX
ing. Coffee and sugar prices showed
no important changes.
Except for further advance in de-
mand sterling, which duplicated the
years high level of $4.S5 7-16, there
was little of interest in the foreign ex-
change market. French francs held
firm above 3.91 cents and other con-
tinental rates showed practically no
change.