Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-16
'STOCKS GO HIGHER
| IN LIVELY MARKET
Heavy Buying Pushes Rail
Averages Through Re-
cent Highs.
,ecial dispatch to The Star.

SpeCldl DlSphtCn 10
NEW YORK. August 16.-The stock
market made further progress today on
the side of advance. 1t was buoyant
at the opening. but Gained down in the
latter part Of the session, when a part
OF the early gains we're Cancelled.
1t was plain. however, that the line
OF least resistance was upward and as
a matter of fact the proportion of the
rise held until the end was surprising
ly large
Rails were the features during the
morning and the low-priced utilities
in the afternoon. The result of the
days operations was to take the rail-
road averages into new high ground
on the recovery. The market was much
more active on the advance than 1t
was on setbacks
Gains at the opening were larger and
activity was greater than at any time
since the present recovery began. The
overnight buying orders were punched
and found a dearth of offerings any
where near the previous close The
result was a violent rise. For instance.
Allied Chemical registered at 7-point
, gain on the first sale of a thousand
shares and agreement en- price was not
| reached in time to print the record on
the tape until Is minutes after the gong
rang.
Other Striking Advances.
Even more sensational was the first
sale of United States Steel. which was
for 10000 shares at IS, up nearly
points. Union Pacific featured the
railway group with gain of between
and points for 5000 shares. American
| Telephone & Telegraph was up over
points on 5,00G-share lot on top of its
advance of between and points the
day before. These are only a few in
stances Of the urgent demand for
stocks
Even those favorably disposed toward
| the market were surprised at the vigor
OF the rise. There was a hasty search
for explanation. the one finding NEST
favor being simply the action of the
| market itself. 1t had been firm yeSter-
day and buoyantly strong just before
the close. That demonstration seemed
| to have convinced the outside public,
which no che now denies is in the
market, that the reaction had gone far
| enough to correct any weakened techni-
cal position and that buying was now in
order. This conclusion was strength
ened by the pronounced strength in the
bank share market after the close of
business en- the Stock Exchange yester-
| day.
To the objection that there was no
| statistical basis for the upward move
ment in business itself, the answer was
made that the statistics did not yet re-
| fleet the progress which had been made.
This was said to be particularly true
| with regard to the steel industry, where
the prospects were declared to be
brighter than in months past Per-
hapS the new Washington measures de-
! signed to revive trade helped, but with
out the present background they would
have been ignored
Rails Well Bought.
Naturally the wide advances az the
| opening attracted realizing and prices
yielded during the first hour, but still
held well above the proceeding close
By noon this selling had been absorbed
and the market was again on its way
upward. Turnover in the first half
hour was 100000 shares. The ticker
fell several minutes behind