Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-24
STOCKS ARE HEAVY |
IN LATE SELLING.
Wall Street, Gratified at
Brokers' Loan Statement,
Fears Rate Situation.
BY STANLEY w. PRENOSIL,
Associated Press Financial Writer.

NEW YORK, May 24.-Stock prices
made further recovery in today's market,
but trading turned extremely dull.
Waves of selling swept over the market
at intervals. sending some of the pop
ular industrials below yesterdays final
quotations, but prices invariably snap
ped back as soon as selling pressure
was lifted.
A late selling movement was expedited
by the fall IN some of the volatile
shares. Case Threshing dropped Is
points below its early high, and Cen
eral Electric, Columbia Graphophone
and Electric Auto-Lite lost 7. Specu-
lators who bought early fastened to let
go when they saw that prices OF the
recognized leaders were rapidly losing
ground. The closing was heavy.
The markets dullness was attributed
to the dissemination of large and small
traders to extend their commitments
while the market continued under the
threat of higher rediscount rates. Dr.
rectors of the Chicago Federal Reserve
Bank, who previously have been re-
ported in favor of a rise in rediscount
rates to per cent, meet today, but
Wall Street considered it extremely
doubtful that they would receive APP
prevail for a higher rate at this time.
Many traders believe that any general
increase in rates will be deferred.
Market Opens Strong.
Retention of the per cent rediscount
rate by the New York Federal Reserve
Bank and the drop of $45 900 900 in
brokers loans brought fresh buying into
the market overnight, and opening
prices displayed strong undertone
Wright Aeronautical opened 312 points
higher, May Department Stores and In
terstate Department Stores az each
and Atlantic Refining and Marmon Mo-
tors each. Initial gains of a point
or more were recorded by Chrysler,
Radio, Westinghouse Electric, General
Railway Signal and Erie common.
With the possibility of higher New
York Federal Reserve rate postponed
for at least another week, spectators
for the advance resumed their opera
lions in wide assortment of issues
Gains Of l to 5 points were quite COM
mon in the early trading, with short
covering again an important factor in
the advance.
While some traders were disappointed
that the drop in loans was not larger,
the increase in the reserve ratio of the
New York bank from 1919 per cent last
week to S4.4 per cent this week, as con-
trasted with ratio of TBS per cent a
year ago. had cheerful effect on
speculative sentiment. Commission
houses also pointed out that the rela-
lively small volume of trading this week
indicated an absence Of any extensive
liquidation Of investment holdings.
Early gains of 3 to points were
recorded by Case Threshing, United
Aircraft, General Electric, Fox Film,
Columbia Graphophone, National Bellas
Hess Superior Steel and Columbia Gas,
the last.named touching q new high
record for the year.
Traders More Confident.
Anaconda, Greene Cananea Copper.
Johns Manville, Eleetric Auto Lite,
A. M. Byers, American & Foreign Power
and Union Pacific were among the score
or so issues to move up 2 'po!nts or
more.
There were only a few soft spots,
Burroughs Adding Machine dropping
points and Auburn Auto, 2.
Traders showed little hesitancy in
buying the well-known speculative and
investment issues when 1t was revealed
that money was still plentiful at the
renewal rate Of per cent. Toward
midday some of the leaders began to
slip under the weight OF professional
realizing. General Electric and Columbia
Graphophone falling points below the
best prices they had made earlier. Ma
tional Cash Register, which spurted 6
points at yesterdays close, was driven
2 points under that quotation.