Evening star., 1932-02-11
STOCKS IN ADVANCE
ON HEAVY TRADING.
Market Bounds Upward at
News of Government
Credit Plans.
BY GEORGE T. HUGHES.

special Dispatch TO The Star.
NEW YORK, February 1l.-Sweep-
ing recoveries were recorded all along
the line in today's active and strong
stock market, rejecting speculative
sentiment toward the new banking pro-
posals announced from Washington.
measured by points. the gains were the
largest in any session in months.
A wild scramble to cover by shorts
marked the opening. In the first half
hour 100000 shares changed hands,
whereas in recent sessions something
between 100000 and 20O,O0O had been
the rule The pace was so fast the tape
was unable to keep up with business
on the floor, falling minutes behind
ut one time.
Amateur Shorts Frightened.
Whatever may be the ultimate effect
Of the plan to widen the credit base,
the announcement brought dismay to
the large crop of amateur shorts who
have been selling stocks in small lots
on this latest decline. The early ad-
vance was, roughly, the greatest in the
stocks that harbored the largest chort
interest Brokers said that more ex-
perienced and larger bears were wait
ing to test the market before retiring
contracts on any extensive scale. How
ever that may have been, stocks like
Du Pont, Eastman Kodak and Auburn
by midday were up anywhere from 6 TO
IL points, the larger gain in Auburn.
Advances of to 6 points were made by
American Can, International Business
Machines, Coca Cola and Allied Chemi-
cal, among others. LoWer-priced Is
sues scored proportionate gains.
Large lots came out on the tape dur
ing the recovery. The first burst OF
buying was followed by partial reac-
tion in which, however, volume fell oil
This, too, was contrary to the action
OF the market earlier in the week, when
activity picked up ON the decline.
Just before noon came the announce
ment that Union Pacific had declared
the regular dividend on its common
stock A reduction Of some extent had
been expected up to Wednesday, and
the market was unprepared for the
news The stock jumped over points on
the covering that followed. selling ap-
proximately on a parity with Atchison,
now paying Sc. against $40 for Union
Pacific. Another favorable dividend
announcement was that of Atlantic Re
fining, which also ordered its regular
quarterly disbursement.
The improvement was we'll distributed
between rails and industrials. but was
not SO pronounced in the utility list.
In the merchandising shares r. H,
Macy was the feature, up nearly S
points.
General Motors, selling ex-dividend,
gained over 2 points Announcement
of plans for the new Ford cars was
read with great interest, traders hold
ing that publication would stimulate
the entire automobile industry. Gen.
eral Electric crossed 90 against its
recent low of under 18; j. I. Case ran
up rapidly and American Tobacco E
recovered 5 points, with the other to-
bacco stocks following along.
Opening Prices Gain.
Prices opened higher. Gains ranged
from fractions to 6 points.
A block of $500 shares OF Auburn
Auto came out at 100, up 6. American
Can in a lot of l,50O shares opened at
l13 showed a gain of rs. Consolidated
Gas at 56l2 was up 2Ss points.
Proposals liberalizing the Federal Re
serve act was the outstanding overnight
development. Encouraging January
trade figures bettered early London stock
prices. Sterling opened at s3.43ls here,
up q cents. The report of Air Reduc-
tion showing $454 share was better
than the most hopeful predictions Pay
ment of the j. 1. Case preferred diVi-
dend had not been expected.
Anaconda Copper and international
Nickel rose fractionally. Bethlehem
Steel opened up point while Johns
Manville ran up Is.
A block of 1900 shares Of United
States Steel came out at 40l4 up ia
points. Columbian Carbon gained over
point. A block of $500 shares OF
Chesapeake g. Ohio opened at 23ls, up
IA. Atchison. New York Central
Southern Pacific and Union Pacific
were all up point or more.
Union Oil of California, one OF the
few oils to come out, opened at II Is
of "a. Columbia Gas was up q to
l2A. National Biscuit at 1914, was up
IA, making the best showing in the
food stocks. Woolworth at 1875 was
up IA.