New Britain herald., 1928-10-04
ADVANCE STOPPED
IN STOCK MARKET
Raskob's Statement Responsible
for Temporary Check

New York. Oct. R-A sweep
ing advance in stock prices today
was temporarily checked by a heavy
selling movement which followed
the publication OF 4 statement by
John J. Raskob, former General
Motors executive. that prices had far
outrun demonstrated values and that
a material readjustment was neces-
sary. Early gains, which ran from
? to nearly points in many cases.
were cut down. and in a few in
stances replaced by losses, but strong
buying support was quickly provided
and the market was headed upward
under new leaders early in the
afternoon.
Stock prices resumed their upward
movement at the opening of today's
market under the leadership OF the
motor shares. Chrysler opened with
q block of $500 shares at 129, up
? IA points and a high record, and
Studebaker showed gain of SIS
The first sale of Bethlehem Steel
was a block of 10000 shares at
81 ia, up IL. Universal Pipe also
opened with block of 10000 shares
at 20. up fractionally and a new
high record.
Cali money renewed at ~ per
cent, as against yesterday. and then
dropped to as a large volume OF
funds became available. Funds were
available below that figure in the
outside market" leading to expec-
tations Of a further shading of the
Official rate before the end of the
week. Sterling Exchange dipped tc
another new low. reviving hopes Of
further gold imports.
steels gave an impressive demon
stration of strength on buying in.
| huenced by trade predictions OF un-
usually good last quarter business
General Motors fell back on the Ras-
kob statement. but Chrysler con-
tinued to head upward. climbing
points to new high record at 1904
Packard also moved into new high
ground at ssh. National Dairy
products reacted on the traditional
| selling on the good news" following
the declaration Of stock dividend
of I per cent. Victor Talking Ma
chine, Briggs, National Cash Regis
ter, Coty and Pierce Oil preferred
all moved into new high ground.
Early trading was in unusually
heavy volume with the market de-
veloping into runaway affair
Blocks of 5000 to 10000 share.
changed hands at frequent inter.
walls. with long strings of transac'
tions showing spreads Of to
points.
New high records were established
in the first half hour of trading b,
Victor Talking Machine. 1nterna
tional Nickel, Barnsdall A. Briggs
Manufacturing and National Dair,
Products, the gains running from
to nearly S points.
| U. s. Steel common quickly raj
up more than 5 points to 161 SIS
duplicating the years high record
General Motors, A. NJ. Byers an
Bethlehem Steel were among tn
many issues to extend their open
ing gains to points or more.
There was nothing in the over
night news to influence the pric'
movement although Wall street ep
parently felt relieved that rumor
that Governor Roy Young Of thu
federal reserve board would sharp
ly criticise securities. speculation ii
his address before the American
Bankers association failed to ma
terialize. Predictions in banking
circles of lower call money befor'
the end Of the week also had /.
bullish effect on speculative senti
ment.
Foreign exchanges opened steady
with sterling cables lowering arount
the years low level OF $4.s4 rs.
Relaxation OF the recent strain
gave the duh element a sturdy girl
on the market which was illustrated
by many advances Of \ to I points
and first hour transactions exceeding
100000 shares. the largest volume
in that period for q long time. Thu
extent Of the turnover in individual
issues was shown by the transfer o
one block Of 2c,S00 shares Of Pack
ard motors. Some of the leaders
particularly General Motors. wa
selling off from the best figures a
midday. when the bulls were calling
on their reserves among the inactive
groups to keep the procession goinl
forward.
The renewal rate for call loan
was shaded from to 711z per cent.