Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-16
RECOVERY IN STOCK
MARKET RESUMES
Favorable Foreign News Re-
suits in Better Tone
on Exchange.
BY GEORGE T. HUGHES.

NEW YORK, July 16.-Higher prices
for stocks, a pronounced rally in grains,
strength in cotton and recovery in Ger
man bonds were the market reactions
to the better news from abroad today.
Stocks opened higher on this exchange,
wavered in the early afternoon and then
resumed their advance, making their
best prices in the last hour. The only
diScordant note was the heavineSs in
the rails, but they too improved toward
the end.
The rebound in the share list re-
fiected relief at the signs Of Cooper
alton internationally for the relief Of
Germany It did not signify any new
attitude toward domestic trade. but it
did bring considerable short covering
and q proportion of new buying into
stocks. United States Steel, American
Can, General Motors, International
Telephone, and American & Foreign
Power were all in demand at the Close
Opening quotations were nearly all
higher. 1t looked as though there had
been considerable short selling Wednes-
day but it appeared to have come from
small operators none too sure Of their
first sign Of danger. United States
Steel, American Can, American Tele-
phone, j. I. Case, Allied Chemical,
Westinghouse Electric and other popu-
lar stocks were all up from fractions to
one and two points.
Not all OF the gain was held during
the first two hours Of trading, but the
list as a whole was steady. Among the
exceptions were some Of the food
reacted easily. Air Reduction sold of
while the rest of the list was rallying.
The rails were highly irregular, ad-
vances and declines occurring stimuli
taneously One of the weak carrier
stocks was Southern Pacific, suggest
ing doubt about the next dividend.
Union Pacific lost ground also. Balti-
more 81 Ohio opened strong and then
reacted. New York Central was heavy.
Reasons for the action Of the rails
were not dif1icult to understand In
the FIRST place the testimony at the
rate hearing in Washington readver-
tised the plight Of the carriers, although
it added nothing new to public knowl-
edge. In the second place the June
earnings statements are due any day
now and are sure to make unfavorable
comparison with those of a year ago.
Finally. with wheat selling below the
cost Of production. it is hard TO make
out q case for higher freight charges.
The foreign news was reassuring and
the markets recovery, such as 1t was
reflected that fact. The London and
Paris markets were strong and sterling
exchange, which had dropped TO the
lowest since 1925 on Wednesday, came
back for a point and a half gain after
it had been announced that there was
no change in the Bank Of England rate
More important than all, the cable dis
patches indicated q change of heart on
the part of the French, no longer in
sistent on pressing Germany to the
limit
Copper stocks were stronger with the
rest Of the list, although there was no
change in the market for the metal
Calumet 81 Arizona ran UP over ;
points, attracting attention. The to-
bacco stocks were in good demand, with
Lorillard the feature. A report that
new distribution facilities had been ar
ranged, however, was denied. Local
fractions were undisturbed by the Court
Of Appeals decision upholding the s.
cent fare. Interborough Rapid Transit
was up 2 to 3 points and Third
Avenue Railway and Brooklyn q Man
haitian Transit gained.