The Washington times., 1929-07-20
WEEK s TRADING
UNUSUALLY
ACTIVE
By w. s. COUSINS

NEW YORK. July 20 Q.N.s).-
Continuance Of the upward swing in
prices Of railroad. utility, and indus
trial stocks; a sensational rise in
wheat and corn prices In Chicago
and Winnepeg; further recovery Of
the Canadian dollar in the exchange
markets; easing off Of call-moneS
rates to Z per cent. after an early
advance to IL per cent; maintenance
Of high operating and earnings
records by the industrial corpora
tons, and a new increase in brokers
loans sufficient to bring the total
to record breaking volume were the
principal features Of the financial
situation this week.
Gathering Of the war clouds alone
the Observation-Disclosures border and
the massing of Russian and Chinese
soldiers to protect their respective
national interests had little effect
upon the financial markets, for the
reason that neither nation has re
sources or foreign credit sufficient
10 finance q long and destructive
war. The danger lies in the EN-
broiling Of Japanese or other Eu'
ropeans in q conflict, in which Inn
portant principles may be at stake
with the exception Of the motor
stock and a few rails and special
ties. the market was headed defi'
niteIv upward all the week. Weak
ness in motors was attributed %
'sswitching'' Of big trades, ana little
ones. too, from stocks which ap'
reared to be lifeless for the time
being. to those IN which speculative
Dvrotechnics were being staged
Motor-car production In the first
haIf Of 1929 aggregated $500. 900
with the prospect Of the first 6,OOO,'
OOo.car year in history being
recorded. Contrary to ''bear rumors''
there is no glut In the market EoE
automobiles, and manuIacturerA
state positively that cars are moving
satisfactorily through dealers nanos
TO the public.
United States Steel's persistent
advance to above 206, following Lne
official call Of the directors Tor tne
redemption of all of the 1850 year
per cent bonds at 11O and interest
was an important feature In main
tanning the buoyant market tone
BY this action United States Steei
has taken the final step In W1pine
out entirely its bonded debt OF close
to $500, 900, ,000s leaving only LnS
bonds Of its subsidiaries. Wai
Street heard creditable rumorS OF an
enormous increase in net earnings
Of the big corporations this year
paving the way for higher casn dlyt
dends.
Objective points were reached by
q number Of important public utlhty
stocks this week, including Conson
dated Gas of New York, which top
ped $50 for the first time In its pres
ent form. This iS equivalent to
price of $500 a share for the STOCK
before its latest split-up. Brooklyn
Union Gas. mentioned In merger
rumors with other Metropolitan gaf
and electric lighting companies
SCARED to 226. American and Foreign
Power, American Power and Light
American Water Works, STANDARD
Gas and other spectacular market
favorites, struck their best strides
in active trading this week.
A $58, 900 900 expansion In brokers'
loans brought the total to q new
peak, but a $69,00O,0OO decrease II
Reserve Bank discounts threw I'M
portant light on the money situation
1t shows that the banks were in
stronger position, and that expansion
in (so called brokers loans had beer
incurred in financing new stock anc
bond issues rather than in margin
speculation on the exchanges. In
yestment buying Of the better grade
Of dividend-paying stocks has beer
increasing In volume, and foreiSr
buying Of corporation stocks hal
helped to cut down the floating sup
ply. :,
Not all the price movements II
the stock market were upward sim
ultaneously with the advance OF ~
to 40 stocks each day into new
record high price levels, from 1S t.
~ stocks dropped to the loves
prices of the year-or even for
longer period. This extreme irreg
ularity has given rise to a jumbo
Of opinions among stock marke
experts. some Of them cautioninl
against buying of stocks at thii
time. while others urge the pur
chase Of their recommended favor
ties.
Business and industry in the third
auarter Of the year promises to ruI
along at . high level, though with
sonaA recessions from the extremely
high pitch Of the second quarter
some uneasiness is felt over thu
backing up Of the market for auto
mobiles, though manufacturers gen
eraIIy are not apprehensivo ove'
their ability to sell all the caC'
they can produce. Price cuttinl
also has been defended on th'
ground of lower production cost
and O desire to share these savingi
with customers.
Bond dealers are confident that thu
steady retirement Of American Gov
erinment and corporation bonds viii
be at somc near future date, balanc'
the continued withdrawal Of in
yestors from the bond market, and
institute a fresh buying movement
In high-grade bonds. When thii
movement sets in a good many O
the bond mems worries will disap
pear. Reserve Bank heads are exert
ing their best, influence in behalf o
healthy bond market, which Il
very much needed at the presen
time.
Investment buying Of the high
grade railroad stocks was on the In
crease this week. New York Cen
trails popularity has not waned sine
that stock crossed 200 O few week
ago. Chesapeake and Ohio, Balti
more and Ohio, Frisco, Union Pacifi
and other well known rails are sell
Ing at the highest prices in the.
hiatorxy-and wall Street exuAct