Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-23
STOCK PRICES GAIN
| IN WEEKS TRADING
Short Covering Responsible
for Rise in Many Issues.
SteeIS Lead.
By the Associated Press.

By the Associated Press
NEW YORK, February 23.--High
money rates. and the prospect of fur
Their measures to restrict the volume of
credit available for speculation, had a
restraining effect on trading in this
weeks stock market, the dullest Of the
year. but prices showed marked buoy
ancy in response to a series of favor
able earnings, dividend and trade re-
ports.
Except for the Federal Reserve
Boards approval of a higher buying
rate for bankers acceptances outside
of New York to bring them in line with
those prevailing in the metropolitan
area, there was no actual change in
credit conditions. Call money fluctuated
between and 8 per cent and time
money and commercial paper held firm
around their recent high levels. No
change was made in the New York
Federal Reserve rediscount rate.
Brokers' Loans Drop.
Despite rather large volume CT new
financing, and higher stock prices
brokers' loans dropped SOL 100000 in
the week ended Wednesday, bringing
the total down to $5,447 100000 This
follows drop of $l01 100000 the week
0NAOtNs w al 4NCoCANC OAAlAAaAAH
have not set any arbitrary figure to
which loans should be reduced, there
is a general feeling in the financial
district that the board will not be salts
fed until loans are back around the
SIS, 900, 100000 level.
Due to the drop in loans and the re-
payment of Federal Reserve borrowings
the loan ratio of the New York Federal
Reserve Bank increased from 1877 to
1871 per cent, as against 1872 per cent
a year ago. The loan ratio of the II
Federal Reserve banks combined in
creased from 69.S to 70.8 per cent, as
against TAT per cent year ago.
The demand for stocks in the loan
crowd" after the close of the market
each day has disclosed large short
interest in many Of the popular indus
trials and specialties. When it be-
came apparent that the Federal Re-
serve rediscount rate was likely to be
holiday liquidation was likely, short
covering assumed large proportions
and accounted for the brisk advance in
many issues.
Steel Shares Lead.
Steel shares took a prominent part
in the recovery on buying influenced
by reports of an unusually high rate
of operations and a firm price tendency.
Attention was called in the weekly steel
trade reviews, however, to "the growing
hesitancy in business sentiment" due
to recent developments in the credit
situation. Copper shares quoted down
somewhat after their recent sharp adj
vance, although the demand for the red
metal continued heavy at the years
high prices.
Railroad shares responded to the in
crease in freight traffic, the publication
of excellent earnings statements, and
the filing of new merger plans by the
Baltimore 81 Ohio and Van Sweringen
railroad systems. The other sharp re-
duction in crude oil output was offset
by reports OF gasoline war on the
Pacific Coast, and rumors that Western
oil companies were seeking an entry
into the Atlantic seaboard market
Rubber stocks were active and strong,
and better demand was apparent for
the merchandising, mail order and drug
issues. A sharp advance in Packard,
influenced in part by the development
of a new airplane engine, was the out
standing feature in the automotive
group.
A spectacular gain in American &
Foreign Power, accompanied by uncon-
firmed rumors of technical corner"
in that issue, monopolized interest i'll
the public utilities division.