Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-03
IMPRESSIVE RALLY
STAGED BY STOCKS
Early Break Under Flood OF
Selling Orders Followed
by SnapbaCk.
BY GEORGE T. HUGHES.
.ecial DISPATCH To The Star.

! Special Dispatch to The Star
NEW YORK. February 3.-The Stock
Market today showed surprising
strength in weathering the test of an
| unexpected increase in the New York
Federal reserve rediscount rate, a
further rise in the latest brokers loans
and drop III the reserve systems ratio
from $50 per cent week ago to 1871
per cent.
An accumulation of overnight selling
orders followed announcement of the
rate advance by the New York Bank
directorate after its meeting yesterday
afternoon The result was an initial
break of from a half point to more
than three points in the recent Specu-
lative favorites But the manner in
which the main body of stocks recov-
cred following the initial outburst OF
selling was most impressive. Perhaps
the ability OF the market to rally. not
withStanding these adverse develop
ments in the credit situation. was
wholly due to the fact that the warn
ing had been sounded last week by the
and the speculative element had set
tied itself against the inevitable rails
ing of the rate here.
Not Much Consideration.
So far as the loans figures were con.
cerned. the liquidation which haC
taken place during the early part Of
the period covered indicated to many
slight decrease But the stock mar.
ket heretofore had ignored continued
increases in brokers borrowings anc
there was no reason why they should
have been given more serious consid.
Grafton today.
The most noteworthy performers
were the steel stocks United States
Steel broke almost points in the early
trading. but recovered with the res,
later. Vanadium went forward to il:
highest price since it was listed in 1919
Republic Iron and Steel. Crucible anc
American Steel Foundries, after earl,
weakness, all recovered more than the
ground lost. With the steel stocks 1,
was case of final quarter results OF
1877 being water over the dam.
They were discounting the prospects OF
large increases in untitled tonnage our.
ing the coming months and what this
Is expected TO mean in the form of first.
quarter operations.
A block of 6.l00 shares of Genera
Motors opened at 1885,, a break of
F~AS- Az w. iCNOfClCu All Tile SUD
Sequent dealings. Chrysler opened or
block OF $4,000 shares at 565s. onl,
10 rally back TO practically where i
nao left OF Thursday. Hudson suffered
break Of almost points, but hard.
ened with Hupp Motor. Studebaker anc
others Of the group.
Packer Stocks Prominent.
Shares OF packing companies camf
N Tor considerable attention. with
Cuoahy Packing at new high in over
a year above ga Wilson g. Co. issues
went along. but they were not as prom.
inent. The change for the better in the
INDUSTRY. especially in the foreign field
Wnere the price-cut war has been ellmi-
mated appeared to be the incentive for
the demand
Utilities moved in unison with other
groups, opening down sharply in the
case OF Montana Power Peoples Gas
and the local traction issues. but recov-
ering good part of their losses as the
session progressed. At the latest agita-
ton for 7-cent fare was having at
least a momentary effect upon the mar.
ket for such stock as Interborough
Rapid Transit and Brooklyn Manhat-
tan Transit.
Short covering made itself felt In At
lantic Refining. following the reassur-
ing remarks of company officials re-
garding maintenance of the present 81
quarterly distribution The rails. save
IN the cost of New Haven. were slower
10 recover. but the reaction in this
quarter was not as pronounced as IL
had been elsewhere.