The Washington times., 1930-06-20
COPPER RISE.
Seen AID TO
UPTREND
Brokerage Heads Leave Town
Late Today Over Week
End Unless Drop Occurs
- THE SPECTATOR

THOUSANDS OF SC0ck tr0oeEH
y throughout the nation were
ciaeefed by the sharp rally that
|. was sustained all through yester.
days stock market session.
Doubtless many Of these traders
Xare seriously considering taking
another whirI at the market to
day, in the hope Of picking up
quick profits on q further up.
swing. AS far as the general list
of stocks Is concerned, my advice
to traders is to let them alone
for the time being.
= Most brokers agree that such
rallies as we experienced are
: likely to be temporary. In addi'
tion to these views, there is the
practical certainty that operators
who bought near the low point
of this weeks break and made
profits yesterday will take their
profits late today or early tomor'
row morning.
Because so many operators
leave the city on Friday nights In
the summer months, it is more
than likely that considerable
? profit taking viii appear today.
Therefore it behooveS small
/ traders. those who cannot watch
the ticker every minute, to move
Ncarefully in today's session.
Copper Prices Up
One of the most important in
fluences for strength in the mar
ket was the readjuStment of the
copper metal price from 11h
cents a pound to 1914 cents,
where it is on a par with the
foreign quotation. 1t may be said
v safely that there are few copper
producers who could continue to
pay dividends, even at the new
low rates, with copper selling be-
Alow IL cents pound. At this
writing, all stocks which had
been available at lower prices had
been cleaned out.
Rail shares came through with
q sharp recovery, ranging as high
as z points in the higher priced
issues. This group is considered
to have been thoroughly sold out,
despite expectation of unfavor-
able earnings reports to be pub
Ished next month.
Stocks VS.. Bonds
If it is. true, as has been
claimed. that the banking pow
ers would hike to force the public
out of common stocks and into
pthe bond market, current condi-
tions, if maintained, will serve to
defeat that purpose. With money
rates at the lowest levels in three
years, and common stocks offer
ing their present high yields.
there are few investors who would
care to put large sums into bonds,
whose yield is comparatively low
' and the market uncertain.
T Pullman Earnings
It was freely remarked that
HAmerican Telephone seems tc
have wreSted leadership of the
market from Steel common
American Can was an outsta.ld
ingly strong feature yesterday.
Advices from the middlewest
say Pullman earnings this year
will be below those of 1929. De
:. spite the promises of railroads
to buy equipment in order tC
further President Hoovers pros
perity campaign" inaugurateC
after the autumn panic, orders
for equipment have been small
and are likely to continue SO al
long as current business dullnes:
exists. Pullman Company how
ever, win cover It's dividend this
year.
Following London advices that
the German 5 51a per cent an
= nuities bonds sold at discount
there, foreign. !, agents notified
New York. that the bonds sold in
Amsterdam at Ia per cent dis
NcOunt.
: At yesterdays price, slightly
above 500 a share, New York
Chicago and St. Louis, better
known as Nickel Plate, was sell
ing to yield more than 6.2 pei
cent. The stock is off 48 points
from the years high and pays
) SO q share annually.
Nickel Plate Yield
i Those most interested in the
railroad consolidation picture
epoint out the Importance of West
ern Maryland TO the new com
pany proposed by the Taplin In
terests, looking toward merger OF
Wabash, Wheeling and Lake Erie
and Western Maryland.
Shorts Cover Positions
While there was gossip in many
quarters about investment t,aiS'
u and bank buying Of securities
yesterday, it was SAID Ill inc
, brokerage offices that the re
covery was brought about chiefly
4 by short covering. The dearth
Of bearish news and the sudden
display of strength in the com.
modify markets resulted in con.
siderable nervous uncertainty in
the bear ranks. Those most re
Iuctant to take in their short
lines weakened In the final hour
and their covering was responsible