Evening star., 1928-06-15
OILS ARE LEADERS
ON STOCK MARKET
Serious Secondary Reaction
Averted When Trading
Volume Falls OF.
BY GEORGE T. HUGHES.

| special DlSp1bCn 10 Inc DthIs
NEW YORK, June 15.-What threat
ened for time to prove a serious Sec
ondary reaction In the stock market
was averted by bullish demonstration
in the oils and by rapid falling on IN
volume of business on the decline.
The bidding up of the oils. which
came In the early afternoon and which
included practically all the active issues
In that group, stemmed the selling in
the indlistrials, which had been the
forenoon feature.
The oil news was generally favorable.
but the market was influenced more by
the easier tone In money and by the
way the early selling dried up. Stand
ard Oil Of New York was the leader
and the other oils fell into line. Texas
Corporation, Standard Oil of Califor-
MIA, American Republics, Sinclair and
others moved up easily. Atlantic Re-
fining, which had dropped points In
the early trading, recovered all the loss
and more.
General List Irregular.
The general list was irregular. Stand
ard industrials came back partially, but
most of them we're still under the pre-
ceding close. American Linseed was
the feature OF the specialties, rising to
a record high at 1i6. Radio fiuctuated
erratically, first up and then down. The
same was true OF the airplane stocks.
Gold Dust went along with Linseed.
Trading was slow, with the ticker COM
ing to standstill from time to time.
Money. which renewed at 5l2 per
cent, was available in the outside mar
ket at 5i2 per cent. and predictions
we're made of marking down of the
official rate.
The opening was irregular Standard
stocks were generally lower, but numer-
Gus specialties recorded advances For
an hour or so the list was compare
lively steady. Then offerings increased
and prices weakened all along the line.
Once the reaction got under way there
was little resistance. Perhaps the oils
did better than any other one group.
although they, too were affected more
or less General Motors, General Elec-
trio and Steel were all down substan-
TALLY long before noon.
Stocks Especially Sensitive.
Stocks which had been bid up rapidly
earlier in the week were especially sem
sitive. Allied Chemical and Atlantic
Refining we're outstanding instances.
The former went down 5 points without
! intermediate rally, and the latter, which
had had sensational advance Of nearly
IL points Thursday, sold of fully as
much.
In the more inactive issues declines
of a point between sales were not un-
usual.
Various reasons we're advanced in ex-
PLANTATION of the fresh weakness. While
brokers loans showed large falling
of in the Federal reserve compilation
this was offset by the increase In re-
discounts, by the drop In the reserve
ratio and by the decline in gold hold
ings Anxiety was expressed as to FUR
ther gold exports More important than
all of this, however. was the fact that
the market had shown itself vulnera-
BILE. All precedents would be broken II
the big break had not been followed
by a secondary decline.
Market for Bank Shares.
Another situation to which close at
tention was given was the market Tor
bank stocks. Speculation in this quar-
ter had been carried to extremes, Just
as 1t had been IN corporation stocks,
and the readiuStment under way today,
evidenced in the lowering of the bid
prices, had its effect on stock market
sentiment.
The mid-morning lows were followed
by partial recoverieS. The volume
slowed down and the ticker caught up
with the market. Money renewed al
5is per cent, the first time the renewa!
rate has been so low for a week.