The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-04-11
STOCK VALUES
Are INCREASED
BY ; BILLION
Congressional Action on
Two Measures Brings
Bullish Trend
Copyright, 1898, by United Press

NEW YORK, April IL. UP)-
Congressional action on taxes and
government reorganization helped
generate a sharp recovery in Sc
curity prices last week and re-
stored approximately $3,000,000,-
600 to market valuation of stocks
and bonds.
The rally, which lifted some is
sues 20 points or more above the
three wear lows recorded barely 10
DAYS ago, came in the final two
sessions of the week. 1t followed
a nervous backing and filing
movement in rather quiet trading
as traders endeavored to evaluate
a rather confused political and
economic situation.
STOCKS RISE
On Friday, however, stocks
pushed up one to five points in a
belated "inflation" advance in
spired by Washington reports in.
dicating early renewal Of a federal
pump printing" program. And on
Saturday the gains were extended
two to six points in spectacular
rise celebrating" the death in the
house of the government reorgan-
iZation bill - "the most bullish
piece of news this year." traders
said
Traders generally looked on the
house action as blighting all fur
ther reform measures of the ad-
ministration, including wages and
hours. until business "has at least
got on its feet"
Even more bullish developments
came after the close Of trading
Saturday. While clerks in the
street labored to bring their rec
ords up to date after the most
hectic Saturday trading in six
months, the senate passed the re-
vised tax bill. That bill, it was
generally agreed, met the majority
of business demands. 1t called for
repeal of the undistributed profits
tax, downward revision of the cap
ital gains taxes, and in addition it
called for elimination of tax en-
emption from future issues of fed
eral securities. The. latter If en-
acted, undoubtedly would aid in
the flotation of corporate issues,
thus facilitating the flow OF. new
capital, NEW life into private
enterprise.
The few traders who were avail
able for comment last night were
definitely bullish. They looked Tor
prices to rise further and for bust
ness to show Improvement. Profit
taking was anticipated on the ad-
vance but more general buying IS
expected to offset realizing sales.
Business news last week con-
tinued mixed. The housing situa-
ton took on more pleasing hue.
The administration continued its
plans to aid the nations carriers.
There were signs of some improve
ment in the automobile industry
and the gasoline situation Cooked
up." On the other hand, steel OPP
erations dropped, car loadings fell
below the 1882 depression week in
a contra-seasonal decline, electric
ity production continued to lag
and business failures to swell. .
The spotty business situation
made for caution in the market
early in the week, but the better
political picture overshadowed all
other factors in the final two SEES
Sions.
The Dow Jones industrial aver
age was up 9.2l points on the
week to 1852 and 1857 points
above the March 81 low of 1886
when the three-year bottom was
reached. Saturdays advance was
the sharpest and most active in six
months and was estimated to have
added some So, 900, 900, 900 to mar
kct valuation Of securities for that
day alone.
AMERICAN TELEPHONE UP
A total Of l,4l0,000 shares were
turned over in the short final SEES
sion. but sales for the entire week
aggregated only 4,429,700 shares.
Wednesdays session was one OF
the smallest in years, the fourth
hour volume of 10000 shares rep
resenting one of the smallest hours
in recent exchange history. Sales
for the preceding week totaled T.
372,220 shares. ....',
Of 1896 issues traded on the
week 883 rose, only II declined
and 81 were unchanged.
Eastman Kodak rose Ii ID
points on the week to a level %
points above the March 81 low,
while American Telephone at 131
was up ID on the week and ~
points above the 1888 low reached
in the preceding week. Allied
Chemical was up around 13 points
on the week. Westinghouse Elec-
trio, Minneapolis Honeywell, and
Union Pacific around eight points,
Case around six points, Du Point
and International Harvester more
than five points and Chrysler,
American Smelling Atchison up
more than four points.