New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1928-07-13
WALL Street HAS
RALLY THIS NOON
Opens Weak But Then Comes
Reversal Of Form
tBy Stanley w. Prenosil,


Associated Press Financial Editor)
New York, July IS lPt-The Stock
Market displayed complete reyers-
al of form today. selling OFF sharply
at the opening on the raising of the
New York Federal Reserve re-dis-
count rate. and then rallying briskly
in rcspose to a lowering of call
money rates. Trading showed a
market reduction in volume, total
sales in the first three hours run
ming around l IA million shares,
Call money renewed at 7l2 per
cent and then dropped to as
plentiful supply of funds flowed in
from all sections Of the country. SO
great was the supply of loanahle
funds in the afternoon that loans
We're arranged in the outside mar
ket' as low as 6 y per cent, and the
official rate was lowered to that
figure. Time money and commercial
paper rates held firm.
The days trade news was largely
favorable. Reports of lower steel
prices from the Chicago district
were offset by an increase in 4-inch
pipe prices. Directors Of the Allis
Chalmers Company raised the an
nual dividend from So to 81. L. S.
Rubber common was heavily bought
on. runors of merger with Good
rich, but these were denied by Off
Gals OF the latter company Crude
rubber consumption in June broke
all records
DUPONT broke points to Sc3 in
the early trading and then rallied
to So. Wright Aeronautcal drop
ped to IL points to 1876 and snap
ped back to 143 IA. Radio fell to
1852 Y and rebounded to 1853 rs.
General Motors rallied from an early
low of 1871 SIS to 1877 1-2 and Cur
tiss Aeroplane from 81 IA to 1929.
Indian Refining preferred rallied
10 points above yesterdays close,
Texas x Pacific 7, National Tea 6,
and Case Threshing, Allis Chalmers.
General Electric. Dawson Chemical,
Monteomely-Ward. Allied Chemical
and advance Runely preferred sold
TO . points higher.
Wall street Opening
The stock market opened weak.
with declines running as low as So
points.
Alrplane issues especially were I'M
der pressure Curtiss opening down
points and Wright Aero 8 y. De-
cllnes of TO ! p points We're shown
by ln.on Pacific. Canadian Pacific.
Consolidated Gas. General Electric,
Chrysler. International Telephone
| and American International. Gen
eral Motors, after opening up a half
point at 1856. dropped to 1874.
Allied Chemical opened about / !.
| points higher.
! Raising OF the New York Federal
| Reserve bank rediscount rate from
q to 5 per cent after the close OF
! the market yesterday, took Wall
street by surprise. While it was gen
orally expected that other fedora
reserve banks would follow the Lead
of Chicago in establishing a 5 pei
I cent rate, the increase here was not
looked for before next week.
The higher money rate offset the
! ordinarily favorable influence Of a
decrease of SC4,0V0,000 in brokers
loans. Most market observers look
ed upon it as a determined effort to
check further speculation and force
{; reduction in loans before the fall
expansion in commercial borrowings
begins to make itself felt.
The relatively small declines at
the opening indicated the presence
OF organized buying support. Offer
ings increased on the rallies, and
prices continued to slide downward
as trading progressed. Wright Aer-
onautical extended its loss to Az
points before the end of the first half
hour. Radio extended its loss TO
points. General Motors to and Cen
eral Electric and Du Pont each.
E'oreien exchanges opened easier,
with sterling cables quoted around
s4.S6 1-16 and French loans around
3.9t IA cents,
Gains of considerable scope re-
placed many of the early losses as
/ the conviction grew in some quarters
! that the recent decline in the market
had gone a long ways in discount
ing the prevailing tight credit con
ditions. A rise in the renewal rate
! for call loans to l. per cent was
taken with such equanimity that tho
+ best prices Of the morning Were pre-
>ailing at midday. General Motort
rallied from ISL o-s to 1S5 Is
Eadio from 162 IL to 16S ano
Wright Aero from 1856 to 14l IA.