New Britain herald., 1930-08-15
Stocks Sent Moderately Higher When Bears Faction Withdraws
 Short Stand On Today's Market
Borrowing Demand Is So Great That Loan Seekers FOrego Interest On Their Securities.

New York, Aug. Is P}-The bear forces again trod on each others toes in today's stock market, and for the third successive day be- came disorganized and sent stocks sharply higher as they hastily with drew their short positions.
 With some 1S0 stocks lending "fat" indicating that the borrow ing demand is so great that borrow CTS are willing to forego interest on the funds deposited with lenders, the bear faction appears to have at iracted what is perhaps an unprece- dented following. Some brokers es- timate that short interest amounts to between 4,Q00,000 and 5,o00,000 shares.
 While many observers insist these estimates are too high, the feeling that some unexpected piece of good news might create a sudden demand for some 4O00,O00 shares 10 cover short contracts has definitely im- paired bearish courage. Some pro- fessional traders have begun to try for q quick turn on the upside, d. though there has been little or no inclination to organize any new bull campaign,
 Rally Grows Stronger
 Trading deserted the bear cause right and left as the session pro- gressed, and by late afternoon, the bear retreat came close to a rout. when |, s. Steel sold up 4 points, and such issues as Westinghouse Electric, the Old American Tobacco shares, Nanadium, Case, Columbian Carbon, and Allied Chemical shot up about 5 10 10 points or more. General Electric. American Can, American Telephone, and Public Service Of x. J. gained 3 to more than f. Radio sold up about ? points, in trahsactions of 5000 and 10000 shares, as rumor had it that the report for the first half would appear in day or so, making lit tie better showing than expected.
 Morning losses of to points were almost completely erased. Tbe market closed strong. Transfers az gregated 1,650,000 shares.
 Extensive rainfall, apparently breaking the drought over some of the most seriously affected areas, was one of the most bullish develop ments of the day. Such develop ments as unsatisfactory earnings re- ports and rumors of reductions in dividends appeared to have been pretty well discounted marketwise, although the coppers sagged some what in response to reports that both Kennecott and Anaconda may make further reductions.
 Power Firms Up
 The International Paper and Pow CT issues, which were acutely weak yesterday, 1rmed up after publiCa- l ton of the statement showing a June quarter deficit of $500 after divi- dends It was learned at the offices of the company that the drought | had not affected it's hydroeleCtrlc properties Warner Bros. sold off 3 points after announcements of the ] issue of rights. then rallied. Chrysler was steady to firm, in response to its June quarter report, showing the dividend practically earned, and cash position further strengthened. o12 esp, ontdii oct
 The breaking of the drought, while causing some unsettlement in the grain markets. was regarded in banking circles as enhancing the pite the damage already done. One | banker who was conspicuously op- i tinistic in July. now describes pros- 1 poets in somewhat less glowing terms. but says that August will make a better showing than July and that improvement will be con- tinued in September, but adds that | betterment will come slowly. The business week, which has also i been optimistic for several weeks states, sentiment in financial quar- ters continues to lag behind senti- ment in commercial circles. Bank ing caution, not to say timidity, is retarding business. Too much i'm portanCe is still being attached tc i figures on the ticker tape; stock prices rise and fall in a purely pro- fcssional market"
 1 The annalist's preliminary index of business activity for July, as an- nounced today. however. gave an in 1 dication of the extent of the decline 1 The index finally broke through the | low levels of 1924, and recorded the lowest point since the 1921 depres- | sion.
 Credit was about unchanged, The reduction of s59,oo0,oOO in brokers 1 loans to the lowest level in three years gave a measure of the defation 1 that has been accomplished. Call money was abundant, but held at , !. per cent, perhaps reflecting the ! heavy payments to be made on Mon- day in connection with the treasury bill offering.