The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-17
BY ELMER c. Waller

FTeSS FINANCIAL EQlkOF
NEW YORK, Oct. 1U.-Stocks
rose 1 to 6 points today and held a
large amount of the gain despite
last minute profit taking.
Bonds were distinctly irregular.
featured by a crash in United States
government issues, all but one of
which made new lows for the year
or longer. The United States
issues were sold on f1rmer money
brought on by Thursdays rise to
81 per cent in the New York fed
eral reserve bank rediscount rate.
According to preliminary calcula-
lions the Dow, Jones & Co. indus
trial average stood at 1929, up
3.78 points; rail averages 1854, up
294 points, and utility average at
40.78, up 1923 points.
Sales totaled 100000 shares
compared with 100000 shares yes
terday.
Wheat and other grains frmed UP
and cotton was making new highs
for the day as the end of the ses-
sion neared.
Trade Is Dull
Trading in stocks was on a small
scale. What buying developed was
helped along by vote of confidence
given the Bruening government in
Germany, a more optimistic tone in
the weekly trade reviews. anticipa-
ton of favorable response from
the interstate commerce commission
on the railroad petition for higher
freight rate, and the better COM
modify markets.
Railroad shares led the market
throughout the day. At one time
Atchison was up nearly six points
and others one to more than three
points. More than half the gains
were retained. Utilities held gains
ranging to two points.
Steel FORCES Ahead
Later in the day, United States
Steel made progress ahead after a
brief period of prof1t-aking. 1t was
brief period of profit-taking. It was
previous close, buying helped by
anticipation of increasing business
for steel companies from the auto
mobile trade and early estimates
that the corporation would see fit
to declare the same dividend on
common paid in the preceding
quarter" Steel directors meet for
dividend action Tuesday, Oct. 81.
Leading induStrials followed
Steel upward. Gains of l to more
than s points were recorded in j. I.
Case, Westinghouse Electric, Allied
Chemical, Dupont and American
Can.
Call Money Rises
The higher rediScount rate had no
apparent effect on the stock mar
ket. The rise was not entirely I'M
expected and traders were inclined
to the belief it would have a bene-
fetal effect in the long run.
Selling in the United States bonds
was a result of f1rmer money rates.
Following the advance in the redis-
count rate, call money rose to 215
per cent for the first time since De-
cember, 1880. Time money was firm
er as was commercial paper, bank
ers acceptances and interest rates
generally.
The widest break in United States
loans was in treasury 31s per cent
bonds, which broke more than four
points in one of the widest declines
ever witnessed in this class of bonds.
With United States bonds selling
down so rapidly, the street came to
the conclusion that foreign govern
ments had about decided reparations
payments would not be resumed aft
err the Hoover moratorium expired.
By United Press
CHICAGO. Oct. 16.-The Federal
Reserve bank of Chicago announced
today that its rediscount rate would
be raised from 21a to 31a per cent
effective Saturday.