Evening star., 1932-08-05
STOCKS GAIN AGAIN
AS2,5[O,Ol)O SHARES
SELL ON EXCHANGE
Grains and Other Staples
Also Move to Higher Ground
in Days Trading.
S3O,OO0,OO0 WHEAT POOL
RUMoRED IN WALL STREET
Report Says New Organization
Would Help Commodities by TAX
ing Over Farm Board Stores.
BY the Associated Press.

BY the Associated Press.
NEW YORK, August 5.-The stock
and commodity markets gave each other
mutual assistance in the big push to
higher prices today although profit
taking again reduced extreme gains.
Buyers bid enthusiastically for lead
ing shares on the New York Stock Ex-
change during the morning when wheat
was rising l to cents a bushel and
when other staples were moving for
ward under the impetus of bullish re-
ports. Extreme advances of 81 to 81
in most pivotal stocks were generally
reduced in the afternoon, but there
was another furry of strength toward
the close under leadership Of the oil
and farm implement issues and the
final tone was strong.
Activity was lighter than yesterday,
the markets busiest day since De-
cember l8. Sales approximated 2,500,-
900 shares, roughly a million under
Thursdays turnover.
Reports that Europe was hsavy
buyer of American dollars were accom-
panied by declines in a number of
foreign curYencies, particularly the
British pound.
Wheat Pool Rumored.
Reports that a powerful banking
group was to be organized to strengthen
commodity prices by extending aid to
manufacturers for replenishment of de-
pleted inventories and a rumor that
Chicago and New York interests were
forming a huge wheat pool which would
have at least s30,OO0,O00 at its disposal
caught Wall Streets imagination over
night and speculative enthusiasm swept
like wildhre through the financial dis
trict.
1t was learned Eugene Meyer, gov
erncr of the Federal Reserve Board, had
been conferrlng with New York bank
ers in regard to- the so-called COM
modify pool" although plans for
launching the proposed new corporation
still were incomplete. One aim Of the
group, it was said, would be to assure
orderly distribution of what remains of
the Farm Boards holdings of agricul-
tural products. stocks which were accu-
mulated some time ago during the Gov
ernment agency's attempt to maintain
prices.
Wall Street heard the wheat pool
probably would be managed by that
noted Chicago operator, Arthur W. Cut
ten. and that this groups organization
virtually had been accomplished. The
pool, it was said, might take over what
remains of the Farm Boards stocks
now estimated at about 50,000,000
bushels.
Warrants Higher Prices.
Those interested in wheat were said
to feel prospects of a relatively small
Winter crop this year, estimat ted at
10000 900 bushels-the lightest since
1925-warranted higher prices for that
basic grain, even though the Spring
yield was expected to be more than
double last years return.
Cotton men felt the proposal con-
tanned potential aid for their product,
especially if the Farm Board should
agree to hold off the markets the
3,500,000 bales it now owns. AS out
lined unofficially, the syndicate would
acquire from this agency or from the
Co-cperatives an undetermined amount
of cotton, with the agreement that no
more would be marketed by them this
year Selling by the co-operativeS is
said to have been persistent during the
past month.
The Young committee of bankers and
industrialists met here yesterday to
canvass the commodity situation, but
what il decided was not disclosed.
Weekly mercantile reviews added their
note of optimism to the days news, as
sertMg confidence appeared to be in
Creasing throughout the country.
Many Caught Mapping.
Rarely has an important upswing in
the stock market caught so much OF
Wall Street mapping as has the ad-
vance of the past month.
Not only have the bears been sur
prised. but a number OF traders who
felt that a substantial rally might be
in the making and hoped to get into
the market at the proper time. found
the market running away on the up
side before they could establish their
positions.
Other traders who had failed to get
in near the bottom waited for sub
Stantial reaction. and were dumb
founded as weeks went by and nothing
in the nature of sharp setback oc-
CURED. Still other traders who made
profits on the upside during the early
stage of the market, switched to bear
positions in expectation OF reaction,
then covered their short commitments
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