The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-27
BY ELMER c. WALLER


NEW YORK, Feb ga def
mite trend toward an easy money
policy on the part of the federal
reserve, passage of the Glass
Steagan bill and a greater than
seasonal decline in mony in cir
culation failed today to generate a
rising stock market.
According to preliminary calcula-
ton the Dow, Jones 81 Co. indus
trial average stood at 5000. up "a
point; rail average at 1852, off. 10
point, and utility average at 33.49,
off .16 point.
Sales totaled 100000 shares. COM
pared with 100000 shares Thurs
day.
Prices we're firm for time after
a drop in the early trading. but late
IN the day the list gradual slipped
back, closing irregular.
Dealings were on a small scale
throughout the session. Lack of
demand for stocks on the horde of
favorable news items was explained
by the reduced short interest which
left the market without buying
power for a rally.
Brokers' Loans OFF
A decline of $10,0O0,00O in broker
age loans for the week ended
Wednesday showed falling off in
outside demand for shares.
United States government bonds
responded at once to the reduction
in the New York federal reserve re-
discount rate from 81 to 3 per
cent; q drop in the reserve bill buy
ing rate, and lower rates for bank
ers' acceptances. Nearly all of these
issues rose to new highs for the
year and the bond market generally
was firm.
Numerous special issues were bid
up, including Western Dairy issues,
Gillette, Industrial Rayon, Kauf-
man Department Stores A., United
States Industrial Alcohol, National
Distilleres and Allied Chemical.
Standard Brands firmed up on
declaration Of the regular quarterly
dividend. Kreuger 81 Toll held
steady in the face of a sharp de-
cline in Kreuger g. Toll B stock
on the Stockholm bourse. Selling
in match stocks there was induced
by reports there would be re-
duction in the Forthcoming dividend
Of Swedish Match.
Steel Shares Weak
United States Steel held near the
previous close to which it recov-
cred after an easy decline. Near
the close, it declined again. Other
industrial leaders behaved better
than Steel which was under the in
fluence of lower operations in the
steel industry.
Atchison was strong spot in an
otherwise colorless railroad list.
Utilities also fluctuated narrowly,
although pressure against Utilities
Power and Light A brought that
issue to a new low for the year on
the big board, while the common
made a new low on the curb.
Steel common closed at 47H, off
q, American Telephone at 1851,
of u and American Can 66A, off
ia and Auburn Auto 891k, off rs.
Gillette closed at 205s, up rs after
touching 81.
Forecast Stock Rise
The Glass-Steagall bill was ex-
peoted to be in operation next week
and the easier money policy of the
federal reserve already was in mo-
ton.
Aid from the federal reserve
through the expanded credit facil-
tiles provided in the new bank bill
was expected to check bank failures
and thus instill sentiment which
would preclude dumping of bonds
on the bond market. Stocks were
expected to benefit gradually from
firm bond prices.
Some believed further foreign
gold Withdrawals might offset the
good effects of the new bank bill,
but the latter will free enough gold
to nulhfy further Withdrawals, &C
rOrdiNo IN no nkarc