New Britain herald., 1928-08-10
MARKET STARTS UP
BUT HITS A SNAG
Runs Against High Call Money
and Stops

New York, Aug. 10 lPs-Ihe stock
market started forward at a brisk
pace today and thea stumbled over
the barrier Of Il. per cent call
money. Early gains of ! 10 nearly
5ia points were generally cut down,
or wiped out, and = number OF is
sues sold down I to points below
yesterdays ANAL quotations.
Call money renewed at per cent
but advanced to 7le as banks called
$4,000, 900 in loans TO strengthen
their positions at the federal re-
serves banks. Time money and eom-
mercial paper rates held arm. A
ray of hope was seen, however, In
private London dispatches that more
than 100000 in gold had been
ear marked by the Bank OF Eng
land for the account of the New
York Federal Reserve Bank
The early advance in prices was
based on the relatively small in
crease in brokers loans and the re-
tentioa OF the per cent rediscount
rate by the New York Federal Re-
serve bank. One Of the most inter
esting business developments OF the
day was the drop of 6e,0e2 tons in
the July unhiled orders Of the United
States Steel Corporation. which il
slightly less than had been generally
expected
Outside the stock market, chief
speculative interest centered in the
break OF to S cents . bushsl in
wheat futures, and = rally Of more
than 81 q bale in cotton
Heavy accumulation OF chrysler
common and Dodge Bros. preferred,
which advanced more than points
to new high records. contrasted
with renewed liquidation of General
Motors, which dropped from an ear
ly high OF ISL to ISL IA. Radio
fell from lis to lT2 IL, Wright
Aeronautical from 1855 to i50
Warner Bros A from IS to - a.
and Atlantic Refining from 1871
to 1884,
St. Louis Southwestern reached
new peak at "a "a.
The stock market opened today
with most OF the important indus
trial shares showing gain, Radio
started with block OF 5000 shares
at LIS, gain of ia points.
Montgomery-Ward advanced 10
1887. new years high. st. Louis
Southwestern common was up :
points to 81 as. a record high price
for all tins. Gains of TO : points
were shown by General Motors,
Chrysler. L, s, Steel. American Can.
Consolidated Gas and Johns Man
VILE.
Retention of the 5 per cent re-
discount rate by the New York Fed
eral Reserve bank. coupled with the
relatively small increase in brokers'
loans and the decrease in re-dis-
counts. revived bullish enthusiasm.
Bear traders. who sold stocks short
earlier in the week, were quick to
cover when pool operations in the
speeialties were resumed on 4 broad
scale.
New peak prices for the year
were quickly established by Scar
Roebuck and United Biscuit. Amuse-
ment shares, which were weak yes
terday. We're in the forefront OF to-
days advance. Warner Bros. Pic
lures A extended its gain to ss4
points and Paramount Famous Las
ky to 2 points before the end OF the
first half hour. General Motors. L.
s. Steel common, Consolidated Gas.
International Nickel. Johns Man.
willie and Loose Wiles also showed
early gains Of points or more.
Foreign exchanges opened steady.
with sterling cables unchanged at
SASH.
Prices OF both the Dodge Brothers
preferred issues and Chrysler were
soaring At midday. with the rest Of
the list pursuing a contrary course.
A block OF $4,000 shares OF Chrys-
Ter was purchased at 20 after which
IT reached 90 Ia, Dodge preferred
brought 81 and Dodge preferred
certificates 80. these prices all in
dicating new peaks for the year. and
were S IA to So above the
previous close. Meantime the price
on General Motors faded to leS b-s.
The rate on standing loans was
maintained at per cent