Evening star., 1929-07-02
HIGH MONEY FAILS
|. TO BREAK MARKET
Stock Prices Advance Stead
lily Despite IS Per Cent
Call Rate.
BY STANLEY w. PRENoSIL.,
Associated Press Financial Editor.

NEW YORK, July 2.-Fifteen per
cent call money. which sent a specula-
tive chill through the stock market yes
terday and brought about reaction in
prices. made its appearance again today.
but the market moved steadily upward,
with United States Steel common and
at least dozen Of the leading railroad
shares touching new high records for
the year. There were several soft spots
scattered throughout the list, particu-
larly in the public utility group, but
they had little influence on the general
market. -.--..
Call Money Scarce.
Call money was scarce at Is per cent
for time, and the rate threatened to
go higher, but New York banks freely
supplied funds when the stringency be-
came apparent. and the rate was held
at that level OUt-of -toWh banks began
calling loans from the outset, but these
funds were replaced. There was no
change in time money, commercial
paper or bankers acceptances.
With the July holiday invariably
creating heavy currency demands and
more stock purchase rights expiring
this week. there appears to be little
hope Of any marked easing of call
money rates before next week.
u. 8. Steel common, the forthcoming
dividend action Of which Is arousing
widespread interest and curiosity, re-
turned to its role as the market leader
by climbing more than 8 points to
reached before the issuance Of addi-
tional stock for the retirement Of fund
ed debt.
Railroad shares were heavily bought
as result Of the excellent May
earnings reports now being published,
and also In the belief that the filing of
the Wabash merger plan would hasten
action on the general railroad conSoM-
dation program.
A strong demand for special shares
featured the late dealings, which saw
General Electric rise more than 40
points to $50. Case Threshing Machine
jumped Il points, while Delaware ds
Hudson, Westinghouse Electric, A. M.
Byers, Eastman Kodak and United Air
craft sold from 2 to 10 points higher.
United States Steel touched 1859. The
closing was strong.
Prices Gain at Opening.
Prices moved irregularly higher at
the opening, with the steelS. showing
o strong rallying tendency. Republic
Steel opened ia points higher at log,
new nign record, Al. M ayers SHOWED
an initial gain Of as, and Colorado
Fuel 1. American Can also moved into
new high ground. Initial gains Of q
point or more also were recorded by
International Telephone, Union Tank
Car, Westinghouse Electric and United
Fruit; Atlantic, Gulf & West Indies
dropped " points and Anaconda, Coty
and yellow Truck yielded fractionally.
While some uneasiness developed as
result of the money pinch" yesterday
and the prospect Of heavy profit taking
over the holiday, operators for the ad-
vance resumed their activities, con-
centyating ON . select assortment Of
steel, railroad, can and merchandising
shares.
Commission houses generally predicted
lower money rates by the middle Of the
month, with the possibility that the call
rates might work down to per cent
unless there was an unusually sharp
revival Of bullish activity. Time money
rates have been gradually working easier
for the past three weeks.
Railroad shares continued to respond
to the excellent character of current
earnings reports. Pennsylvania moved
up Ia points 10 81, the highest price
on record. and Atchison, New York Can
tral. Union Pacific and Delaware &
Hudson also sold at new high prices
for the year, or longer. Missouri Pa
cific preferred was heavy.