New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1927-08-05
REDISC0UNT BOOM
T0S7OCK MARKET
Recovery Under Way Since
Coolidge Decision

New York. Aug. P-The re-
covery in stock prices, which has
been under way since Wednesdays
opening break on the Coolidge state
ment, gained added momentum to-
day by the reduction in the New
York federal reserve redisconut
rate, with its implied stimulus to
business. Speculative activity Gen.
tered largely in the industrial
shares. many of which were bid up
. to nearly 10 points to record high
levels. Rails continued TO lag be-
hind, the drop of s20,o00,ooo in
June earnings of class l carries on
the wage increase to eastern engin-
GERS having a temporarily depres-
sing influence of speculation in that
group.
Waves Of realizing swept through
the market at intervals. but they
were fairly we'll absorbed. Houston
Oil broke more than s points and
weakness also cropped out in Bald
win, Mack Truck, Postum and a
few others. The selling OF Manhat-
tan Electrical supply, whose recent
sensational advance has been a
feature of many sessions, presum-
ably was inspired by the stock ex-
change investigation OF recent
transactions in that issue.
Public Utilities gave one OF the
most impressive demonstrations of
group strength, Brooklyn Union Gas
standing out with an extreme gain
of Q points. Peoples Gas, Consoli-
dated gas. Brooklyn Edison, Mar
ket Street Railway Prior preferred
and American express all reached
new high ground, American Tele-
phone was in brisk demand during
the afternoon.
New peak prices were also estab-
lished by General Railway Signal
Gabriel Snubber, Westinghouse Air
Brake, Atlantic Refining, r. H.
Macy Woolworth, the Fair and Nc
Crory stores a and b. Among the
few strong spots in the railroad di-
vision were Atchison, Baltimore &
ONO and Union Pacific.
Wall Street Opening.
Speculation for the advance was
given fresh impetus at the opening
of today's Stock Market by the re-
duction from to Sla per cent In
the New York Federal,Reserve bank
re discount rate. Standard Milling
opeend points higher at SO 3-s and
was followed into new high ground
by Eureka Vacuum. Nash Motors
and several others. Gains OF a point
or more We're recorded by General
Motors, Baltimore & Ohio, General
Asphalt and Consolidated Gas.
The buying movement reached
broad proportions, embracing prac-
tically all groups Of stocks. Large
blocks changed hands on initial
sales, some of the largest being IT,
600 shares of Standard Oil Of New
Jersey S,1oo shares of L. s. Steel
common. The increase of $50, o0o,-
600 in Brokers' Loans last week,
bringing the total to the largest
sum - record, was completely dis
regarded The uncertainty created
by President Coolideg's announce
ment also appears to have disap-
peared, at least for the time being.
General Railway Signal quickly
scared more than points to new
top at 1471a and General Motors
crossed $50 for the time. Other
issues to reach TIN high ground
were Union Carr. WoolWorth,
Kennecott Copper McCrory stores
r, American Express and Erie.
Speculation for the rise was un-
changed throughout the morning al
though the rapidity of the advance
in some issues tempted realizing.
Many Of the shares which command
big speculative following were TAX
en- eagerly with the gains especial
ly large in the public utility and
erchandise shares. McCrory stores
, r advanced s points. r. H. Macy g.,
Brooklyn Union Gas and Peoples
Gas 4. The renewal rate on call
loans was reduced from 1 to ga
per cent
THE MARKET AT ESQ r. NJ.