Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-12
STOCKS co HIGHER )
AS RALLY RESUMES
Market Displays Firm Tone
as Speculative Confidence
Returns-0iIs Active.
BY STANLEY w. PRENOSIL,
Associated Press Financial rditoy


NEW YORK, August I2.-SpecuIative
confidence in the stock market, which
mad been badly shaken by the sharp
break which followed the raising of the
New York Federal Reserve rediscount
rate last Thursday. apparently had been
!uuy restored today as bullish opera
lions were resumed with considerable
violence in a wide assortment of issues.
Gains In the active shares ran from 2
70 Is points, with many Of the leaders
gong above the prices recorded Just
prior to Fridays break.
The credit situation has not vet re-
vealed the effect of q higher rediscount
rate and lowering of the buying rate
ana bankers acceptances, as call money
renewed unchanged at per cent and
there were no changes In the rates on
other monetary accommodations.
Trading fell off when the market ran
into profit-taking sales in the final
hour which depressed U. S. Steel and
other leaders 2 to 3 points below their
its early 5-point rise. The closing was
firm.
Awaits Weekly Report.
Wall street awaits with considerable
interest the weekly report of the Fed
eral Reserve which will show to what
extent the central banks have increased
their purchases Of bills and Govern
ment securities to provide additional
credit for the harvesting of crops and
the normal Fall expansion in trade.
Revival OF speculative activity and
strength in the Oil shares was one of
the outstanding features of the ses-
sion. Oils have participated relatively
little in the current Bull" market. and
most OF the active shares have been
sluggish In recent months, because of
the difficulties encountered by Govern
ment omclals and trade executives in
attempting to solve the over-produc-
ton problem. Houston Oil ran up 6
points, and American Republics Az.
Brisk Gains at Opening.
A heavy accumulation of buying or
ders came into the market over the weelx
end, as result OF Saturdays brisk rally.
and opening prices displayed a strong
undertone. Gillette Safety Razor Jump
ed 5b points on the first sale. and ini-
tial gains of to nearly 4 points were
registered by Union Carbide, Westing-
house Electric, American Can and
American Power & Light. Opening
gains OF point or so were recorded by
Radio, New Haven, National Cash
Register, International Harvester and
U. S. Steel common. Union Pacific
dropped points.
Further study of the effect of the
advance from to per cent in the New
York Federal Reserve rediscount rate.
which caused Fridays bad smash in
prices, led to a rather general conclu.
sion on the part Of market observers
that 1t was not as bearish as first believed.
ReaSSuring advices on the part of bank
ing and brokerage houses helped to re-
vive speculative confidence. which had
been severely shaken, and led to active
who had sold stocks heavily on the
Federal Reserve announcement
Early gains in the active issues today
ran from to points, with the public
utilities again in the forefront of the
advance. New high records were es-
tabliShed in the first half hour of trad
ing by United States Steel common at
22l12, up 312, and American Tobacco
A and B stocks.
Pacific Lighting quickly ran up
points, Stone & Webster and Ameri-
can Telephone, American & Foreign
Power and Brooklyn Union Gas sold
to points higher.
Equipment Stocks.
Railroad equipment stocks were in
brisk demand on reports of expanding
business as result OF the record pros
perity Of the class carriers in the first
half of the year. General American
Tank and Baldwin were the early lead.
ers in that group.
Rails also moved up, initial gains of
point or so being recorded by Della
ware & Hudson, Erie common, Balti.
more & Ohio, Allegheny Corporation
and several others
Foreign exchanges opened steady,
with sterling cables unchanged at
$4.84 1916.