New Britain herald., 1930-03-20
Stocks Sell Of During Morning
 But Rally Sharply In Afternoon,
 Some Issues Reaching New Highs
Call Money Renews at 2 Per Cent - Tobacco Shares Advance as Fear of Trade War Is Abated.

New York, March 20 Pl-The stock market displayed a complete reversal of form today, selling off sharply under a heavy volume of short selling and profit taking i'll the morning and then raliying briskly in the afternoon under the leadership Of the motors, chemicals and spe- cialties. Early declines Of l to points were substantially reduced, or
 wiped out and long list of stocks
 marked Up l to Is points, of which score Or more were pushed into new high ground.
 A further relaxation ill credit con- ditions was again an important bull ish factor although some observers were inclined to place a bearish in depreciation upon this development on the theory that it indicated an unusually small commercial demand | for funds. Call money renewed at
 per cent for the first time in near
 y six years but because the low rae | had resulted in withdrawal Of some out of town funds there was
 little disposition to cut the rate ir the outside market. Time mon y
 rates were again shaded. and ban!;-
 CTS acceptance rates were cut 1-4 nt | per cent, after a long series Of cuts of Is of l per cent in the la t | three weeks.
 Lower Rate Not Expected The Bank of England rediscount
 rate was cut from to 8 F per cent,
 the lowest rate since 1923, but local
 banking opinion was divided as to
 the possibility of a cut in the New York Federal Reserve bank after the | close.
 While open market rates would
 cut in the New York rate, it was | pointed out that there is no special incentive in q further cut here, as
 rates already are low enough to stimulate an increased demand for funds for commercial purposes.
 result in sharp revival of securi-
 ties speculation are likely to act as
 a deterrent to another reduction at this time.
 ! Bearish professionals were again l heavy sellers of stock in the early
 trading. Simmons Co.,, U. S. Indus | trial Alcohol, and American Car and
 Foundry were again hammered to
 new low levels for the year, the first
 named selling as low as 4S 3-S, which contrasts with 8 high of 1So l established before the break last | fall.
 United States Industrial Alcohol
 par in the early afternoon. Such
 recent speculative favorites at J. l..
 Case, Columbian Carbon, Eastman | Kodak, Worthington Pump, and h.
 ternational Business Machines also
 sagged three points or more before
 the decline was checked. Renewal of selling pressure
 against Fox film carried that stock | down S12 points.
 Motor Stocks Advance Despite reports that automobile sales were running below year ago and that some dealers were over-
 stocked, a brisk buying movement developed in that group in the
 afternoon trading. General Motors
 was taken in large blocks, crossing
 4S to new high level for the year
 on buying influenced, in part, by the | publication of the annual report dis
 closing a strong financial position for the company. Auburn Auto
 ran up more than points to a new
 peak above 257. Checker Cab
 crossed to a new high for a gain Of
 about four points, and Yellow Truck
 reached a new top at 29. Du Pont,
 which has large General Motors holdings, ran up six points to new
 top at 13S.
 Allied Chemical scared more than
 Is points to a new top for the year. /, Coca Cola, which is expected 10 show increased profits as result Of
 the relatively low price of sugar, !, ran up 10 points to new peak al l72 1-2.
 Among the many other issues 10 sell at new highs were Union Car bide, Mexican Seaboard, Peoples Gas, White Rock, American Tele-
 phone, and Thompson Products, all
 of which responded to reports ot
 improving earnings.
 | Tobacco Shares Rally | Tobacco shares, which were heav- I fly sold early in the week as a re- suit of published attacks by one cigarette manufacturer against an
 other which was construed in some quarters as forerunner of price
 cuts, rallied sharply on reports that any revision in cigarette prices was
 likely to be upward rather than downward. American Tobacco A i jumped ' S-4 points and the "B' stock moved up nearly points. In the rail group, New Haven.
 Kansas City Southern and Chicago
 and Eastern Illinois preferred mov-
 ed into new high ground. Colorado | and SOut hPrD jlIDlna6 6 noiots