The Waterbury Democrat., 1931-10-09

New York, Oct. 9.-(UP).- Bonds and railroad and bank stocks engrossed the interest of the finan- cial community to-day. Domestic industrial and railroad bonds mov- ed up while foregin issues were mixed and United States govern ment issues sharply lower. Rail- road issues and bank shares were strong and active.
 Carriers were forced up 1 to 1 points in the late morning and early afternoon after which they ran into profit-taking. As the market turned toward the fifth hour these issues were holding gains ranging to more than 4 points.
 Selling in United States govern ment issues brought them down 7-32 to 1-32, exceptionally wide declines for these high-grade is- sues. The reason for the drop was the firming tendency in money fol- lowing the increase to 1-2 from 1 1-2 per cent in the New York fed- eral reserve bank rediscount rate. Advances in the railroad stocks and bonds were. accounted for by several explanations. A rumor was freely circulated but not confirmed that railroad workers were to ac- cept a 10 per cent wage reduction. Another rumor which had more foundation was that the l. c. c. was to announce an increased freight rate shortly. The street also looked for some action either from Washington or Albany to aid railroad bonds.
 Bank stocks continued their gam of late yesterday. The support af- forded these issues came from those who believed the Hoover plans for aiding banks and the ten- dency toward firmer money would be highly beneficial for the banks.
 The money market also reflected the rediscount rate rise. Call money was firmer in tone, but con- trary to expectations no change was made in time money rates. All bankers acceptances were up 1z to 1 per cent. Federal funds repre- senting excess reserve deposits were quoted ? A 2 1-4 per cent up l point from yesterdays quota ton.
 Sales on the stock exchange to
 1880 approximated 2,50O,00O sharas against 100000 in the corre- spending period yesterday. Volume was smaller late in the day. Steel Common dipped to Il off 7-S. American Telephone and other Utility leaders lost fraction ally. A few issues such as Au- burn, Woolworth and Case held , good gains.
 The Rails were supported at. levels 1 to 4 points net higher. Along with this group the equip ment issues were strong. General Railway signal spurted more than points and Baldwin more than a point. The latter group was bolst- cred by expectation of a freight rate rise which would result in greater purchases of railroad equip ment.
 New York, Oct 9.-UP)-Having discounted the formation of the bill lion dollar bank pool in yesterdays session, traders sold stocks at the opening to-day. Prices were fires ular, ranging between gains of point and losses of more than 2 points.
 Volume was about the same as yesterdays opening.
 American Telephone dropped near ly ? points on the first sale to l3G. Auburn 2A points to 116z while fractional declines were noted in Westinghouse Electric, Atchisoa, Montgomery Ward. Case and sew eral others.
 Steel common sold at 71 off lB.
 Railroad shares held well as did oils, Standard of New Jersey be- ing an exception. Utilities ruled firm.
 During the early trading prices held around the opening levels with trading moderately active.
 Overnight announcements in addi- tion to the drafting of plans for the bank pool-the National Credit Corporation-were confusing. The street had not yet apprised the value or advantage of a rise in he rediscount rate which took the financial community by surprise after the close yesterday.