Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-13
LIST STAGES RALLY
AFTER EARLY SAG
Break on RedisCount Rate
Action Followed by Rising
Price Trend.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK. July 13.--Priccs moved
toward higher levels on the Stock EX-
change today The manner IN when
buying orders came into the market IN
dicated that the Street had been pre-
pared for the increase in the rev YORK
rediscotnt rate. The main body oil
stocks felt the effect of this action, but
only for brief period, after which quo
tations moved steadily forward.
In mdafternoon the rate on new
loans was reduced from the renewal
figure of ~ per cent to 7 and 6l2 ana
finally to per cent.
General Motors reached its best to-
ward the end of the session ana Inc
same was true of most other leadlng
industrials. Many issues selling eX
their quarterly dividends more than re-
traced the amount deducted from the
price. Allis-C Chalmers was bid up sew
eral points following the placing OF the
stock on a regular annual ST dividend
basis as against Sc previously.
The action of the list as whole IN
the face Of the New York bank action
was encouraging from bull stand
point.
Brokers LoanS Decrease.
The speculative element had in its
favor the decrease of over 64,000,000
| in the latest weekly report on brokers
loans The Federal Reserve Bank state
ment for the entire system disclosed an
advance in the reserve ratio to 67.9
per cent from 65.48 per cent week
ago, but it was noteworthy that the
rate at the New York bank remained
practically unchanged with rediscounts
up $13,096000. The call loan renewal
rate was fixed at ~ per cent, as
against per cent yesterday and the
subsequent charge Of per cent late in
the day for new loans. However, there
appeared to be a plentiful supply Of
funds available, with intentions of low
err money later in the session.
General Motors broke from the pre-
vious final of 184l ? to below 1872, then
rallied sharply over all and more than
the ground lost. 1t carried with it many
of the independent motors. although
the ensuing recovery was not as pro-
nounced as In the leader of the group.
United States Steel moved sympathetic
cally with General Motors. and after
declining to around 1874, was bid up
across 1886, where it was more than
point higher on the day
Prominent favorites of the type of
Montgomery Ward and Sears Roebuck
were EdtIiEu We'll ABOVE Ii1PI previous
final the latter crossing ia, despite
the fact that it was selling ex the
81 L. cent dividend Allied Chemical
was IN urgent demand. Short covering
came into the market for United States
Rubber. carrying 1t several points high
er. and offerings of General Electric
were well absorbed
Plane Shares Rally.
The market for airplane issues indi-
Gated that 1t had been materially
strengthened as a result of recent sell
ing and that the short interest in
Wright Asronalitical and Curtiss Aero
had grown to good-sized proportion
The former. after losing some 3 points.
rallied sharply and was several points
higher on the day
The mining group continued to COM
mand speculative attention. Kenne-
colt Copper was a favorite. still dis
counting prospect Of large distribu-
ttons 10 share owners. International
Nickel was bid up several points. while
American Smelling g. Refining. selling
ex the quarterly dividend of 2 per
cent was we'll taken.
Railway shares again gave a good
account OF themselves, although 1t was
the more speculative issues that were
in best demand. This was true of Wa
bash, Missouri Pacific and Western
Maryland.