Evening star., 1929-07-03
STOCKS IN UPTURN
AS MONEY EASES
Drop to 8 Per Cent Rate Fol-
lowed by Continuation
of Advance.
BY STANLEY w. PRENOSIL.,
Associated Press Financial Editor.


NEW YORK, July 3.-Heavy selling
of the public utility shares. several
of which dropped 2 to points, tenn
porarily unsettled today's stock market,
which was again pointed to higher
ground. Curiously, the low prices of the
day were recorded after the call money
rate had dropped from IL to 8 per cent,
but strong buying support made its
appearance, particularly in the so-called
Morgan stocks" and the market was
headed upward again in the early after
noon.
Rate Drops Swiftly.
The midyear stringency in call money
which sent the rate to Is per cent on
two successive days this week passed
late yesterday, when the Outside rate'
was dropped to IA per cent. Money
renewed at IL per cent and then
dropped abruptly to 8, when a large
volume of funds made it's appearances.
Funds were available in the outside
market" this afternoon as low as 6
per cent. Further indications of q
definite easing In credit conditions were
seen in the drop of x to l per cent
in bankers acceptances, the second
with ma week. and the easier under
tone for time money.
Weekly steel trade reviews continued
to paint roseate picture of conditions
IN the industry. The iron age reported
that "the rate of pig iron production
in June at 123, ,255 tons a day, was the
second highest of any month on record,
being exceeded only by the daily
average of 125, ,745 tons for May" Ingot
output for the first half of the year es-
tablished new high record for that
period
b Increased earnings for June were re-
ported by United Cigar Stores and other
large chain systems.
Radio, inactive recently, was taken
hold of in the final hour and lifted to
80, the highest in month. Prices of
many other leaders responded to a
further drop in the call money rate to
6 per cent, Auburn Auto soaring Is
points to record price, while. American
Can, Southern Pacific, Otis Elevator
and Texas g. Pacific Railroad gained
from 3 to 6 points. The closing was
strong.
Strength at Opening.
Revival of activity and strength in
the railroad shares featured the open
ing st. Louis Southwestern advanced
points on the first sale and Baltimore
&c Ohio common opened with block of
10000 shares at 129, UP "a. Atlantic
Refining sold at a new peak for the
year. Initial gains of point or more
were recorded by United Aircraft,
Auburn Auto, American Power & Light
and Safeway Stores. Allis Chalmers
dropped 3% points and American Tele-
phone ".
Wall Street apparently was not dis
turbed by the increase of more than
$400, 100000 in Stock Exchange member
loans, carrying the total across $1,000
900. 600 for the first time. The fact that
call money was available in the "out-
side market" at IA per cent yesterday,
as against the official rate of Is, was
accepted as evidence that the peak of
the mid-year call money strain had
definitely passed.
Early buying operations again CEN
tered in the railroad shares. New high
records were quickly established by
Pennsylvania, New York Central, Union
Pacific, nickel Plate" Delaware &
Hudson and Norfolk & Western, the
gains ranging from fractions to 3 points.
Canadian Pacific. waSs bid up 8 points
and Baltimore Z, Ohio and Louisville e.
Nashville quicKly extended their gains
to more than point each.
High n~-ced industrial specialties also
showed evidence of an investment de-
mand. Allis Chalmers quickly made up
its initial loss of 334 points and re-
bounded to a new high record at 2741a.
Eastman Kodak ran up points to
new top at 199 and Underwood Elliott
Fisher advanced more than points to
a new high at 152Is. American Can,
National Dairy Products and Woolworth
told stock also sold at their best prices
of the year.