Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-23
STOCK PRICES GAIN
IN STRONG MARKET
List Rebounds Alter Drastic
Reaction Yesterday-Money
Is Easier.
BY STANLEY w. PRENOSIL.
Associated Press Financial Editor.


NEW YORK, May 23.-Stock prices
rebounded sharply today under the in
fiuence of easier call rates and rumors
that no change would be made in the
New York Federal Reserve Bank redis-
count rate after the close of the market
1t was the announcement that the
Federal Reserve council had recon-
mended an increase from to per
cent in rediscount rates which caused
yesterdays drastic reaction.
Recoveries in the general list today
ran from to points, and were dis
issues. few soft spots cropped out,
presumably due to distress selling of
weakened marginal accounts but most
OF the leading industrials, rails and
public utilities received good support.
Easier Money Rate.
Gail money renewed at per cent for
the first time since March 10. There
was plentiful supply of funds available,
money brokers estimating that $50 OOO,-
600 was being offered around midday
and the rate in the outside market"
was dropped to 5lz per cent. It was
not believed, however, that the official
rate would be dropped below 6, which
has been the minimum rate since
August II. 1923.
Maintenance of the 51z per cent dis
count rate by the Bank of England
strengthened hopes that no change
would be made in the New York rate,
as Wall Street believes that the two in
Stitutions have an understanding re-
garding proposed changes in rate, and
That with sterling around the gold
import" point any advance here prob
ably will be preceded by q higher
London rate in order to prevent a drain
on Great Britain'S gold supply. Many
brokers actually welcomed an increase
In rate on the ground that it was better
to have 1t over with and the uncer-
tainty removed rather than to have the
prospect OF high rate hang like the
sword Of Damocles over the market.
The days trade news continued
largely favorable. Additional increases
were announced in the price of crude
oil and gasoline, directors Of Packard
Motors recommended q 4-to-1 stock
split up. Stockholders Of by-products
coke approved similar plan and a so
on Borg Warner. The only unfavorable
development was the report that the
Paris reparations conference was
threatened with failure.
Shorts began to buy back when Q
bear raid on Studebaker failed to affect
the other motors, and Studebaker soon
made up all its loss. The rise was car
ried further in the popular speculative
shares and General Electric gained 10
points, Commonwealth Power 81 and
Packard Motors and Columbia Graphic
phone each. Radio, United States
Steel, American Can and CurtiSS Aero
a on 4
closing was strong.
Strong buying support came into the
market overnight and opening prices
today disclosed firm undertone. New
York Central opened 4 points higher,
Allied Chemical, 3; Westinghouse Elec-
trio, 23s, and United States Steel COM
mon, Anaconda and International Nickel
advanced o point or so. Transconti-
mental Oil opened with q block of TO-
900 shares at 13A. up Il. and Radio
with q block of 5000 shares at 90. up 2.
Some scattered liquidation came into
the market presumably in response to
the many. margin calls which were
sent out last night. Ingersoll Rand and
Burroughs Adding Machine each drop
ped points, Bohn Aluminium, Atlantic
Coast Line and Pere Marquette points
or more, and a dozen or so others
yielded point or so, including Balti-
more q ONO, winch sank 10 WlCn1n
small fraction of the years low
The recovery in the general list was
stimulated by unconfirmed reports that
no change would be made in the New
York Federal Reserve rediscount rate
today. and by expectations of a sub
Stantial drop In brokers' loans. The fact
that less than 100000 shares changed
hands In yesterdays drastic decline. one
Of the most violent since the beginning
OF the so-called Coolidge market" five
years ago, was accepted as proof in some
quarters that there had been no panicky
liquidation Of investment holdings.
Other Gains Reported.
Packard Motors. which announced a
5-for-1 split up last night, quickly ran
up points, as did Curtiss Aeronautical.
General Electric rallied points, Amer
lean & Foreign Power, 2, and more than
a score others, including General Motors,
Nash, Goodyear, Wright, Sears Roebuck
and Woolworth. advanced a point or
more.
The market developed some irregu-
larity during the morning, but the main
trend continued upward. Case Thresh-
ing broke % points to a new low at 327,
Auburn Auto dropped and A. M. Byers
31a. On the other hand, American
Power & Light ran up SIS points and
General Electric. American & Foreign
Power and New York Central extended
their gains to points or more.