Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-22
STOCKS co HIGHER
|. IN QUICK RECOVERY
High-Priced Issues, Utilities
and Rails, Prominent.
in Upswing.
BY STANLEY w. PRENOsIL,
Associated Press Financial Editor.


NEW YORK, August 22.-The stock
market, apparently having recovered
from its fears Of large increase in
brokers loans this week, moved upward
in brisk fashion today under the lead
ership Of the high-grade rails and pub
lie utilities. more than score Of which
established new high records. Gains In
the active issues ran from to nearly
IL points. with trading fairly heavy
in volume.
Reduction in the call money rate
from 7 to per cent for the second
successive day, coupled with an easier
undertone for time money. also had q
bullish effect on speculative sentiment.
Wall Street obviously was pleased at
the continued high rate of steel output
and freight car loadings.
While several conservative commission
houses continued to urge tightening Of
long commitments on the theory that
many stocks were "overbought," others
continued to advise the purchase of the
railroad and industrial leaders on the
theory that large blocks Of these stocks
are being taken out of the market by
investment trusts and that a scarcity in
the floating supply, coupled with .ex-
panding earnings. indicated further
sharp advances in those issues.
Excited bidding for Westinghouse
Electric forced that stock up nearly Is
points to 274i5, a new high. Last-hour
trading also sent General Electric I'D
IL points, while Hershey Chocolate ad-
vanced 6, and Bethlehem Steel to a new
high above 1873. Many stocks eased of
during the final hour, however, as trad
ers took profits In advance of the pub
lication of the brokers' loans figures
after the close of the market The clos
ing was firm.
Opening Advances.
The market opened with further
bullish demonstrations in the rails and
high priced industrials. Westinghouse
Electric opened with a block of 5000
shares, up 3l4 points to a record price
Commercial Investment Trust mounted
25s and Atchison points. Among is
sues opening / to 1a4 points higher
were United States Steel. Montgomery
Ward. International Harvester. Interna-
tional Telephone, Air Reduction and
Northern Pacific. Commercial Solvents
was an isolated soft spot.
The fact that the Bank of England
made no change in its discount rate Of
Sig per cent, sentiment in London tav-
ing improved with the importation of
about 100000 in gold from Australia,
was seized upon by operators for the
advance as bullish development
General Electric quickly ran up near
~ points. and Westinghouse Electric
extended its gain to more than 5 points,
touching new record price at 262.
Renewed buying came into the utilities.
coppers and oils. UneasineSs over the
prospect of an increase in brokers' loans
to be announced after the close of the
session appeared TO have been dis
counted, for the moment at least, in the
heavy selling late yesterday.
Gillette Safety Razor and Woolworth
rose about points to record prices
and United States Steel gained nearly 4
points. Commercial Investment Trust,
ter. American Can, American Rolling
Mill and American & Foreign Power
were bid up 2 or 3 points in the first
half hour.
Other Strong Spots.
General Motors. Radio, Stone & Web
ster, Texas Corporation. Pennsylvania
Railroad. American Smelling and Pub
lie Service Of New Jersey were among
issues rising a point or more. Com
mercial Solvents quickly rallied. max
ing up its early loss and registering a
gain Of a couple of points. American
Telephone sagged couple OF points,
but also rallied. AlliS Chalmers, how
ever, slid back about points.
Foreign exchanges opened steady,
with sterling cables ruling at 4.84 1915.