The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1929-07-06
ST OCkS AGAIN
At PEAK AFTER
BIG WEEK
BIZ ". 5. COUsINs

y Da W. o. OOOSAkNfd8
NEW YORK. July I.N.Sl-
Enthusiastic buying Of Industrial.
utility, and railroad stocks over a
broad range in the principal mar
kets OF the country this week ac-
companied sharp advances Of prices
which practically restored all Of the
ground lost in the May and June re-
action. and established peak values
for the speculative favorites.
Once again it is necessary to go
back to the money markets for the
most logical explanation of the
buoyant move in stock prices. For
nearly a month bulls have been
holding themselves in check while
awaiting completion OF program
Of mid-year financing running close
to $1,000. 00O, 900. This included
flotation of the Governments June
short-time notes, the regular July
interest. and the heaviest dividend
disbursements of the year, and the
taking up of close to a billion dol
lars worth OF new industrial stock
on rights" issued to stockholders
earlier in the year.
Funds Were Scarce
Banks and reserve board heads
preached the gospel of credit con.
servation in order to avoid a Jam"
in the effecting of these huge
financial settlements but the sharp
decline and shake-cut in the stock
market during the last week of May
removed the major part of the
menace Of new money-market
squeeze. AT that funds were scarce
at the beginning of this week, as
shown by the Is per cent callloan
rate, but the, supply increased as
the week advanced. This week ends
the traditional mid-year, tight
money period and no further
money flucries" are looked for.
Under a daily turnover of 4,0O0,-
BOO shares and more, the favored
industrial, utility and railroad
stocks forged ahead buoyantly this
week. The action of the market
was a repetition of it's brilliant per.
Torrance in the week or two pre-
ceding with very little change
either in leadership or in the char
acter of the buying. Booming
prices for u. S. Steel, New York
Central, General Electric, Chesa-
peake and Ohio and other we'll
rated divideHd-paying stocks led TO
the inevitable conclusion that the
''public is in the market enthu-
Hiastically exchanging their dollars
for the equity stocks of prime and
profitably operated American cor
porations,
New High Levels :.
BY all of the important conapi.a-
lions of averages and individual
stock values, prices have once
again reached a new high level for
MI time. This does not mean that
all stocks which were forced down
In the May and early June collapse
Of the market have recovered all
their losses. 1t is significant that
avery day of the week, when prices
of the favorites were bursting
Through the roof stocks of other
corporations, notably the tobacco
And the textile stocks were falling
Through to the lowest levels of the
year. The market is maintaining
ats reputation as q discriminating
affair, about a score of the favor
ftes receiving the play" while
hundreds of less popular issues
have lain on the shelf with hardly
. culver for a year and more.
General. Electric's 35.point jump
to $50 was perhaps the most spec
tacular feature of the market, but
Auburn Motor took the prize as the
champion distance jumper, with a
60.point rise to $50.
AS an important bell.wether of
the stock market, the movements
Of U. S. Steel common have been
very closely checked by the pro- 4
fessional traders as well as by econ
omists and students of the market
in this and other countries. 1t is
significant that traders in the Lon
don market bid big STEEL up to
202h on July 4. while Americans
We're celebrating the glorious
Fourth. while tile best oif own
market could do was to push this
stock to $200 share,