Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-20
STOCKS co HIGHER
IN ACTIVE MARKET
Recovery Is Resumed as
Tighter Credit Condition
Fails to Develop.
BY STANLEY w. PRENOSTL,
Associated Press Financial Editor.

NEW YORK, June 20-The recovery
in stock prices was resumed today, after
an early period of heaviness, as
result of the growing speculative belief
that the midyear credit stringency will
be considerably less severe than ex-
credit conditions is in prospect after
the turn of the month. Pools resumed
operations with confidence In a selected
assortment OF public utility, food, chain
store, automotive and electric equip
ment shares, dozen of which were
lifted to new high levels for the year.
Credit Situation.
Call money renewed unchanged at z
per cent and seemed destined to stay at
that figure all day despite recent in
timations of bankers that the rate
would go higher in midweek. While
there was little in the overnight news
to influence the price movement,
electric equipment shares continued
to respond to reports Of rapidly grow
ing business. Allis Chalmers Jumped
Q points to new high at 2251a, West
tnghouSe Electric ran up nearly to a
new peak at 174H and General Electric
advanced points above yesterdays
final quotation.
for, aside from its attractiveness. the
ga points Baldwin Locomotive adj
vanced 3l2 points on reports that q
meeting of directors to act on the pro-
posed stock split-up had been called
for a. week from today. International
Business Machines, Columbian Carbon
and Wright Aeronautical also recorded
substantial gains.
There were a few soft spots. Case
Threshing Machine certificates dropped
s points to a new low at SOB. Hayes
Body dropped points and Gimbel Bros.
Sagged ! to new low at 81.
Several sharp losses were interspersed
among a number of large advances In
the final hour, Commonwealth Power
sagging 5 points, Otis Elevator 4A and
American Republics f. Meanwhile La
Chalmers 11l2, Warren Bros. 912,
Brooklyn Union Gas 9, Johns Manville
8, By-Products Coke 63z and National
Cash Register 6. Public Service of New
Jersey touched LOG, a block of 10000
shares changing hands at los. The close
was strong.
Pressure at Opening.
Selling pressure was renewed at the
opening and prices generally drifted
lower Initial declines of a point or
more were registered by American
Water Works, Commonwealth Power,
United Aircraft and Remington Rand.
Allied Chemical opened 2 points higher.
Most of the standard industrials and
rails showed narrow fractional changes
on opening sales.
While operators for the advance are
convinced that fundamental credit con-
ditionS have definitely turned easier,
the possibility of sharp furry in the
call rate over the month end served to
keep bulliSh enthusiasm in check. The
rapidity of the recent advance in many
issues, particularly in the public utility
group, has weakened their technical
position and increased the possibility of
temporary downward readjustment Of
quoted values.
Standard Gas & Electric quickly fell
back 81 points and Consolidated Gas
/. Efforts were made to maintain
speculative interest In the power and
light group by bringing forward new
leaders. Pacific Lighting and Pfiladel-
phia Co. being pushed to new high
ground.
General Electric advanced point to
800 and then tumbled to 299. Early
losses of point or SO were registered
by United States Steel common, Ameri-
can Can, American Smelling. Anaconda,
Baldwin and International Combustion.
On the other hand, Westinghouse Elec-
trio, Chrysler, American Car & Foun-
dry, Safeway Stores and Gillette safety
razor pointed upward.
Foreign exchanges opened steady,
with sterling cables unchanged at
$4S47s.