Evening star., 1932-08-07
STOCK PRICES SOAR
IN HEAVY TRADING
HiqheSt Levels Since March
Reached -2,718,530
Shares Turnover.
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is in sight Of general economic re-
covery nevertheless, there is rea-
son to think the giant of the West has
passed the crisis in his sickness"
RumOrs Of Pools.
Brokerage quarters buzSed with ex-
cited gossip of pools and rather fam
bouyant rumors of various measures
which were being. or might be, taken
to restore prosperity. The gossip was
not much different than that which
usually has been spread about in in
tervals of bullish excitement in the past
two or three years. The rumors in
volved. among other things, President
Hoover's acceptance speech, due next
week, pools to boost commodity prices
and plans to revive trade with Soviet
Russia.
Some conservative banking quarters
warned that there was danger that the
speculative enthusiasm might reach un-
warranted extremes. and in the long
run actually damage the cause of busi-
ness recovery. Among the days tan
gible developments was the disclosure
that the New York Clearing House
Banks had appointed a committee to
work on the proposal of Eugene Meyer
that the banks together with the Re-
construction Finance Corporation form
a credit pool to provide funds to fabri-
Gators with which to buy raw mate
rials. It was said an announcement
might be made next week The week
ly report of freight car loadings showed
the moderate gain of 9,557 cars, to an
aggregate of 51o,687 cars, or ISL ,131
below the like week of last year.
In the Foreign Exchange Market the
British pound sterling again declined in
terms of the dollar. presumably reflect
ing further transfer of funds to New
York The pound closed at S345l2.
off Ia cents. The French franc was
a shade lower for a time, but recov-
cred later.
Banking Strengthened.
Prominent bankers said the sharp up
turn in securities prices had undoubt-
edly greatly strengthened the banking
situation throughout the country,
through appreciation Of banks invest
ment portfolios, and the restoration OF
the value of securities put up as COL
lateral for loans. number Of New
York banks were said to be advising
their out-of-toWn correspondents to use
the higher prices to eliminate doubtful
items from their investment portfolios,
and generally to get their investments
in ship shape.
Sharpest gains in the market ap-
peared i'll issues in which there was be-
iieved to have been large short in
tereSt. 1t was notable that many is
sues have more than doubled in price
in the past several weeks. Bears point
ed out that number of issues which
have about doubled in price were shares
of companies which were still operating
in red ink, but this argument was not
taken seriously in bullish quarters,
where it was frankly admitted that the
rally was based chiefly on future pros
poets rather than present conditions.
Commodities Show Sympathy.
Most commodities showed a firming
sympathy with stocks. Copper, which
was sold by the japanese as low as AS
cents q pound in the foreign market in
the early part of the week, was selling
today in most European ports as high
as $50. In the domestic field the metal
advanced around 4 cent to 51s cents
pound.
Tin, lead, zinc and silver moved sew
eral points higher during the week,
with the demand fairly active. Bar
SILVER clOSeO at ~ Genus an ounce, a
gain of 4 of cent over the price
list last Monday.
There was a small advance in food
stuffs generally. Wheat showed mod
crate gain on the week, recovering an
earlier loss of some 5 cents a bushel.
Cocoa futures rose from around $50
cents a pound TO 445 and sugar was
quoted at $40 cents 81 pound. duty paid,
which was near the Deak Drice of the
year.
Cotton closed with a negligible ad-
vance and the silk and rubber markets
were moderately higher.
American Dollar Strong.