Evening star., 1928-04-18
LIST STAGES RALLY
AFTER EARLY DROP
Vitality of Market Apparent
in Today's Moves-Trade
Volume Lighter.
BY GEORGE r. HUGHES.
Dispatch TO The star.

Special Dispatch TO The star.
NEW YORK, April l8.--Heavy SELL
ing and new lows on the reaction were
followed in todays stock market by
pronounced rally. canceling most OF
the early loss and giving the list an
appearance of strength. Part OF the
recovery was undoubtedly due to short
covering. 1t was an unexpected de-
velopment to most observers and again
illustrated the astonishing vitality of
the market. General Motors alter
dropping points came back B. Steel.
responding to the favorable weekly
trade reviews. made up all its loss. Gen
eral Electric duplicated the action OF
motors Meanwhile Independent oper-
ations for the rise went on in the
amusement stocks and the st. Paul
shares assumed leadership of the rails
The volume was not as heavy as III
recent sessions.
Money continued the chief topic of
conversation in brokers Offices Opin-
ion as to the action Of the New York
Federal Reserve Bank on the rediscount
rate Thursday afternoon was sharply
divided On the one hand. II was ar
gued that open market money rates
justified an increase in the rediscount
rate, and. on the other. ii was said that
anything OF the kind would impede the
refunding Of the Third Liberty loan
Tr some quarters 1t was thought that
one Of the other reserve banks might
lead the way in making a change.
Funds Are Abundant
Day to day funds were abundant
The renewal rate was 5 per cent. but
money was in supply. no loans were
called and anxiety on this point was
not In evidence. In the afternoon the
rate for new loans dropped To A.. per
cent.
The early selling affected all classes
OF stock General Motors below i89
was down four points General Elec-
trio below los was of nearly as much
u. S Steel opened higher but soon lost
the gain. Steel however. was not
pressed for sale as were some of the
other industrials American Can. Mont
gomery Ward. Sears Roebuck. WeSting
house Electric. Hudson Motors and
Chrysler were all down substantially
Even the oils and utilities lost ground
although these had been outstanding
points OF strength earlier in the week
The copper stocks were uniformly low
er. with large offerings Of Chile. Ana
conda. Greene Cananea and Calumet
& Arizona Among the oils Texas Cor
poratior and the Standard Oil issues
slipped of easily There was nothint
in the business situation Of either @
these groups 10 stimulate selling Tr
trade circles observers emphasize tn
strength oi the market for the cope
metal The news from the iron ant
steel centers was optimistic also.
Rails Sell on Readily.
The early weakness In the rails was
expected They had not been bid up
aggreSsively like the induStrials. but
they sold OFT readily
Pressure on Rock Island was n0tirea-
bic and investment stocks OF the grade
Of Union Pacific Southern Pacific
PennSvl@ania and New York Central
were freely offered
Here cnd there q stock stood otia
against the trend One OF these vas
Radio. No one stock has invited short
selling more than Radio. and that was
probably the reason for its relative
strength today With margin require
mcnts as high as they are. short sellers
have been making free use of Ston-i0Ss
orders with the result that a rally i'm an
oyersold stock is generally carried along
rapidly
The local fractions did well. and one
or two OF the tobaccos. among th.m
Lortllard, United States Rubber was we'll
supported and Paramount-Famous sold
around its recent high