Evening star., 1932-02-11
Widest Gains Since Last De-
cember Scored on Heavy
Volume of Trading.
COMMODITY PRICE RISE
ALSO FEATURES MARKET
Surprise Move of Government Is
Received With Enthusiasm
on Various Exchanges.

by the Associated Press.
NEW YORK, February 11.-Stocks
were suddenly jerked of the bottom
of a 29-month decline today as the un-
expected plan of modification of the
national banking system was widely
greeted with enthusiasm in Wall Street.
Prices surged upward in the most
violent recovery since mid-December.
and bullishness spread to the commod-
ity markets, where several staples made
modest advances.
Added to the Washington news Of the
bipartisan move to increase the VOL
ume OF credit and currency were an
| nouncementS that the Ford Motor Co.
would soon start production of its new
models, reSuming its usual large-scale
consumption of materials, and the Or
derlng OF the regular quarterly dividend
OF $3.50 by Union Pacific Railroad.
Trading Volume Grows.
In the stock exchange. 100000
shares were traded in the first two
hours alone, or more than the turn
February /. Net gains of So to S6 a
sues, while volatile Auburn shot up
more than $13
The Washington plan took specu-
lative quarters by surprise, particularly
the bears. While constructive news
from Washington had been rumored
far-reaching as the banking revision
projected had been expected.
United States Steel rose nearly IS,
getting above s43; American Telephone.
Sc to SIT; Du Pont, more than S6 to
$50; Union Pacific. more than s7.50
| to SIT; Santa Fe, more than IS to near
| ly s78; American Can, S6 to close to
S63, and Auburn, more than $l3 to
above SLOT. Trading slackened some
what after midday. After a vigorous
| upswing in the first half hour. the mar
ket eased off little, until toward mid
| day news of the Union Pacific dividend
provided fresh impetus to the upswing.
Miscellaneous issues up 50 to 50 a
share included General Motors. Beth
lehem Steel, International Harvester,
Sears -Roebuck, National Biscuit, West
inghouse Electric, General Electric,
Woolworth. Union Carbide, Consolidated
Gas, New York Central, Southern Pa
cif1c, Pennsylvania, New Haven. Public
Service of New Jersey and others.
Advance in Commodities.
While advices in leading commodi-
ties were moderate, wheat gaining about
a cent a bushel and cotton getting up
nearly a dollar bale, hope was ex-
| pressed in trading quarters that the
combination of the work Of the Re-
construction Finance Corporation and
| a Federal Reserve System able to ex-
| tend a large volume of credit might
! have a distinctly helpful effect 1t was
| explained that banks should be able to
resume their normal extensions of cred
| it. permitting manufacturers to buy ma :
| terials more freely and merchants to
| stock larger inventories.
Wall Street banking circles were sur
| prised when announcement was made
| of congressional plans to free America S
gold supply for increased service to
| American credit.
1t was described by some executives
of institutions which regularly handle
| transactions mounting into the billions
| Of dollars as the most encouraging news
| and the most spectacular-in five
years. Their reaction was varied. but
preponderant opinion was expressed
, decidedly in favor of the proposal,
which calls for measures that would
| release large volume of credit and
| currency
1T means liberalizing our bank act
so that the Federal Reserve System
will have nearly as much freedom as
! European central banks, such as the
Bank of France, in meeting its currency
needs" said one executive.