Evening star., 1939-09-01
War Buying Sweeps
Stock Market Up;
Wheat Prices Jump
Hieh-Priced Bonds Go
Down as Investors Try to
Gain by the Upsuree

BY the Associated Press.
NEW YORK, Sept. 1.-War buy
ing swept through the Nations
financial markets today.
Heavy purchases of steels, coppers,
rubbers and sugars jerked the stock
market out OF a slump, and wheat
prices surged up to 8 cents in all
major North American markets, the
limit permitted in a single days
trading.
At the same time, high-priced
bonds declined severely, as some in
vestors evidently sought to shift
their funds from fixed income Sc
curities into stocks and commodi-
ties.
United States Treasury issues en-
countered support in the form of
buying orders from big New York
banks, but several lost $3.50 to more
than $40 per $1,000 par value. They
held at big premiums over the par
values, however, and the Federal Re-
serve Bank asked dealers to report
the names of sellers In an effort to
check speculation.
Buying swept into the stock mar
ket in the last hour of trading, after
prices had dipped 81 to 81 share in
the morning. Trading accelerated
on the recovery, and the ticker fell
in arrears as the volume of orders
reached the largest proportions since
last March.
Wall Streeters Stunned.
The reversal in the stock market
left Wall Streeters stunned. For
weeks the list had been running into
selling flurries based on war fears,
and there was some uneaSlnesS as
to whether the market could be kept
open in the event of European hos
tilities (the market closed from July
81 to December y in 1910.
Brokers had been turning increas-
ingly to the view of late. however,
that nervous selling was completed,
and traders were waiting for deci-
sive developments before deciding
what to do.
Bethlehem Steel converted mid
day loss of SO into a gain 81, rising
above $6l. United States Steel
turned a similar loss into gain
of more than 81. Shares rising 81
to IS above yesterdays final levels
included Anaconda Copper, Kenne-
colt, Douglas Aircraft, American
Sugar, Fajardo Sugar, Union Car
bide and others. On the whole,
losses were not fully recovered, how
ever, and the late trading saw many
issues still off 81 to SO.
Commodities Also Rise.
While wheat in Chicago, Mime
apohs, Duluth and other points
jumped, crude rubber, raw hides
sugar and staples. of which the
United States is a large importer,
surged upward in New York.
Rubber for September delivery
rose nearly IL cents a pound to
close to l8 cents; cocoa jumped
nearly cent, with September above
5 cents raw hides rose a full cent
then lost part of their gain; sugar
gained "a of "a cent, the full limit
permitted; copper futures advanced
"a of cent and more, and cotton
seed oil u cent.
Coffee was about unchanged, and
cotton. after an early setback, re-
covered.
Stock exchange circles said the
recurrent crises of the past year
together with the much stronger
financial position of New York thar
in 1914, had left Wall Street much
better insulated against foreign
shocks than 25 years ago, and there
seemed little likelihood that trading
would get out of hand. They sale
there was no serious consideration
of the possibility of closing the ex.
change.
S. E. c. is Hopeful.
The only extraordinary precautior
was the placing of members of the
Board of Governors at trading post
to watch trading.
At Washington, a Securities Com.
mission spokesman announced al
$50 am. (E. S. t., that the ex.
change would remain open if trad
ing continued as it did in the frs
half hour. The official said thu
commission certainly doesn't wan
to close the market"
Bankers were particularly inter.
ested In the government bond mar.
ket. The Federal Reserve system
was ready to put in supporting
orders if needed Dealers were tolo
their portfolios would be taken ovel
if found burdensome.