Evening star., 1933-05-28
STOCKS IN UPTURN
ON HEAVY TRADING
Market FORCES Ahead Buoy.
antIy on Initiation Talk.
Gains Numerous.
BY CLAUDE A. JAEGER,


: NEW YORK, May 27.-The stock
market was swept upward in one of
the largest waves of buying in its his
tory in today's week end session. Gains
ranged from l to points or more in
scores of issues, and sales for the two
hour session approximated 100000
shares
A new infiationary frenzy developed
over the administrations proposed leg
islation to void gold clauses in public
and private obligations While this in
itself was regarded as only recognizing
the existing situation, Wall Street
buzzed with infiationary gossip. includ-
ing the possibility of establishment here
Of an open market fer gold, permitting
its price to advance above the legal
level Of $20.67 an ounce.
Ticker Swamped.
Buying swept through virtually all
categories of shares, and commodities
surged up as well. The. bond market
was not in the main adversely influ-
enced by the gold clause proposal al
though some of the United States Gov
eminent issues dipped little. Share
trading facilities were overwhelmed, and
the ticker fell half an hour behind
transactions.
Profit-taking occasionally swept over
the markets, but final prices in stocks
were in the main not far from the tops.
Gold stocks had a wild furry. Home
stake, which jumped II points yester-
day, added another points to its ad-
vance today, then slid off a few points
as traders took profits.
Issues getting up to points in
cluded American Telephone, du Pont,
%nJ C+ota Cfaa1
ferred and American Metals while those
up about 2 to 8 included American Can,
American Smelling, Allied Chemical,
Case, United States Steel common,
United Aircraft and others. Anaconda,
General Motors, Chrysler and Mont
gomery Ward were among shares up
around a point.
The reaction of the markets to the
gold clause proposals were regarded as
largely psychological. This step, how
ever. coming in the same week that the
Federal Reserve System has started its
credit expansion program left the dis
tinct impression in financial quarters
that plans to boost commodity prices
would be persistently pursued until the
objectives are reached AS for starting
on open market for gold in the United
States. 1t was pointed out that the
London market already gives clear
indication that the metal is worth about
S2450 an ounce in our present dollars.
Trading in the metal here, however,
might boost its price further and have
an infiationary effect, it was acknowl-
edged.
81 Brokers Bullish.
Added to the infiationary furry was
further encouraging business news.
Most brokerage quarters remained
highly bullish, although some again
warned that the advance may be out
, stripping prospective business recovery
for the nearer future, at least. The
? freight car loadings report showed q
: still better gain over the like week OF
last year. amounting to 81 per cent
against 2.6 per cent last week. This
reflected chiefly the decline under way
last wear, however. for the weeks total
of 531 ,6l8 cars was only 523 cars above
the previous week.
Cotton Jumped about 81 a bale and
closed near the top. Wheat during the
earlier trading rose about 8 cents a
tusilel. Silver futures rallied about a
cent an ounce, and other staple markets
were generally higher.
: The dollar plunged in foreign ex-
change dealings, although 1t did not get
down to its low since the United States
: departed from the gold standard. Ster-
ling rose nearly cents to S3.9712, and
francs points to 4 66 cents.