The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-04
BY ELMER &. WALLER
United Press Financial Editor


NEW YORK, June 4-Stock. Sc
curity and commodity markets to-
day responded vigorously TO the
overnight announcement OF forma-
ton Of a s1OO,0OO0 900 pool to sup
port the bond market
According to preliminary calcu-
lation the Jones Co. industrial
average at the close stood at 5088
up 2.48 points: rails at 1854, up
lit, and utility at 1898, up llO
points.
Sales totaled 100000 shares
compared with 675,473 shares last
Saturday.
Aggregate market value Of ten
leading stocks was S4,439, 6l9.723
against s4,190,970 46l Friday, an
advance Of s248. $40 .262.
Stocks rose to 4 points; bonds
scared l 10 10 points, wheat rallied
to small gains after an early de-
cline; cotton firmed up several
points; bank stocks rallied sharply.
Largely Short Covering
Buying largely was short cover
ing, although not a little was at
tributed to accumulation for in
vestors and spectators on the long
side The rally in its scope re-
sembled the recovery back in 1929
when the banking consortium was
launched in much the same way
as the present bond pool Lighter
short interest precluded possibility
Of such wide advances as those of
late 1929, however.
The bond pool will not be ready
to operate until next week, but so
great was the effect that prices
acted as If it we're now in operation.
The bond market was buoyant,
notably the rails and utilities. Even
the foreign issues participated.
Germans featured. while United
States government loans also moved
higher.
It was believed this latest move
ment would aid greatly in restor-
ing confidence in United States is
sues abroad and soon check the
gold outflow.
Dollar Moves Down
There was as yet no evidence OF
this change abroad and the dollar
eased moderately. More attention
was paid to domestic news in to-
days trading.
The tax legislation practically
was assured in form to raise sufi-
cient revenue to balance the bud
get. A feature Of the slight change
made in the senate bill by the
house conference was the electricity
tax. The house measure makes the
tax payable by consumers instead
of by the companies as provided ip
the senate bill.
The latter item brought further
buying into utility shares and prices
rose l to 3 points. best gains made
by Consolidated Gas. Peoples Ga.
and North Amer can. American
Telephone was carried up TOWARD
90, against a previous close of 86i2
Brooklyn Manhattan Transit wa
an isolated, weak spot. dipping
fractionally.
Railroad issues were up l to near
~ points. with Union Pacific max.
ing the widest advance. Atchisor
was bid up more than points anC
c. & o. nearly 3
Steel Shares Strong
steel common rose above 30. after
opening up = net at %. The whole
industrial list was strong with gain
of one TO more than two points IL
such issues as Auburn. Dupont
American Tobacco issues. Unior
Carbide. Woolworth. American Cal
and Westinghouse Electric.
Improvement was noted in whole
sale and retail trade by Dun's anc
Bradstreet's. Duns found distribu.
tive totals, both at wholesale anC
retail made the best showing in vol
ume of any month this year.
Word from Detroit stated indus
trial employment there on May 81
reached the highest point so fan
this year, according 10 the Detroit
board OF commerce.
Weekly tabulation Of bank fail
ures fell of from twenty-one 2
week ago to nine in the past week