New Britain herald., 1927-08-18
ON RISE
IN STOCK MARKET
Easy Money Rates Provide for
Advance

New York, Aug. Is tp-The main
price movement in today's Stock
Market continued upward. but con-
siderable spottiness developed. par
ticularly in the early trading. Fears
of a Secondary reaction" such as
ordinarily follows the first recovery
after a sharp break, undoubtedly
kept many traders out Of the mar
ket, and accounted for the small
volume of business.
Easy money rates continued TO
provide the main ground work for
the advance. Call loans renewed at
So per cent, the lowest of the year
ana the lowest mid-August rate
since the war While the plentiful
supply Of funds testified to the gen
eral ease of credit conditions, there
vas a disposition in some quarters
to regard it as bearish business, on
the theory that the huge surplus of
lcanable funds were due. in part.
to the relatively small commercial
demand.
Rails shook off the sluggshness
which developed as a result of the
disappointing freight traffic reports,
and started upward around midday
under the leadership OF the eastern
carriers. nickel Plate" Lehigh VAL
10y, Delaware e Hudson. Baltimore
& Ohio and Atlantic Coast Line all
sold . to nearly points above yes
terday's final quotations.
Further strength developed IN inc
oil group on the theory that the In
dustrv would be helped by the sea
sonal curtailment OF drilling opera
tons particularly in new fields. one
block OF 10000 shares OF Phillips
Petroleum changed hands at As,
Houston extended its gain to more
than 5 points and Atlantic Refining
to IL.
Motors we're srottv with specu-
lative interest centerng largely IN
Hudson on rurors OF an increase in
dividend at Saturdays meeting of
the board Resumption of the adj
vance in merchandising issue was
accompanied by heavy profit-tak-
ing.
Various mercantile shares con-
tinued Yesterdays forward move
ment. Buying In this group is large
~ attributable to expectations OF ev-
cellent retail business during the
autumn season. Sears Roebuck. May
Department Stores, Abraham Straus,
Gotham Silk Hosiery and Kayscr
were among the stocks which dis
played early strength. While a num-
Der of declines were in evidence.
several industrials and specialties
moved mp point or so. among them
American Radiator. Westinghouse
Airbrake and Internal ional Comhus-
ton. Bethlehem steel soon extend
Cd its gain to a point, but Republic
sustained loss of as much. Re-
ports concerning the steel industry
as q whole indicated conditions only
little better than in July, while
there were various indications that
( business as whole Is tagging con-
siderably behind, last year. Air re-
duction sold down two points soon
after the opening and Houston Oil
lost 11s. Yellow Truck. Allied
Chemical Radio and Shattuck also
We're among the soft spots. A point
gain by Union Pacific was balanced
by a like loss by Western Maryland
second preferred. Case Threshing
Machine was strong, quickly jump
Ing six points.
Prices were irregularly higher at
the opening Of today's stock market.
with changes limited to fractions.
| Bethlehem Steel began the day frac-
tionally higher at new high for the
year and Montgomery Ward opened
an eighth higher, also at new top.
Early buying converged on
shares which frequently move VIC
lently, Case Threshing Machine ris-
ing II points, Abtibi Power IA
and Houston Oil AZ, the latter more
than retrieving its loss. Selling
meantime ran It's course in the
steel, motor. public utility and
chemical issues. Pittsburgh & West
Virginia broke 4 and Shattucll
points. Buying of the representative
railroads, especially Baltimore &
Ohio and Great Northern preferred
was in progress at midday. The re-
newal rate on call loans was reduced
from 81 to IL per cent.
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