Show LOWER MONEY RATE EXPLAINED Reserve Banks Bank's Action Stimulant to Lines of Trade NEW YORK YORI April 24 Dy The Associated The Press The unexpected une reduction In tho the New York federal reserve rediscount rate ral alt all other develop develop- developments menus ments In this weeks week's financial mar mai mar mar- liets icet It was followed by a sweep trig Ing reduction in money rates rate bringing them to the tho lowest level levi since the spring of 1925 and anti by bya bya a sharp rally In stock and bond prices While there Is considerable dl ferenee ference of opinion as to whether the reserve banks bank's action will no- no r Suit In a II substantial upward move move- meat ment ot of Ik prices It was generally agreed that it would tend tenth to Fo late business which appeared to be fishing oft orr recently In many Import t- t ant lines linea In there was a II deposition to regard the U banks bank's action as official recognition of or the completion of or the liquidating movement which followed the dis- dis disclosure dl lis- lis closure earlier In the year that thi brokers loans on collat- collat collateral oral cral had exceeded the stupendous sum ot or These loans loar already have ha been reduced by about abol BULLISH SENTIMENT Other developments of the week which helped to revive I bullish en en- en were the senates senate's approval al at of or the Italian debt settlement rp- rp renewal r newal neal ot or negotiations tor for the fund fund- fundIng tune Ing lag of ot the French rench debt continuance ot or heavy car and the pub pub- of or a long series of ot splendid first quarter earnings statements bY t y some of oC the largest railroad and In- In in lr corporations of ot the coun- coun country cour courtry try Iry The demand tor for the steel shares which abated somewhat on the dle thee of ot Chairman Gary to lo the th stockholders of or the United States Steel corporation that no higher dividends could safely be paid at atthe it the present time was W revived re by bythe bythe the publication of the Bethlehem company's quarterly report show show- showIng showIng Ing earned earned on on 00 the common commo stock In the first quarter as liS again against In the thc corresponding period 4 of or last year The United States Slate Steel corporation report due next nei Tuesday Is 15 expected to malte make an even avon better belter showing SUG HS OILS Oil shares gathered strength on predictions of ot higher crude oil and gasoline prices although reports of c the discovery of or new pools had 0 a restraining Influence early In the th week Motors rallied 1 on short coy coy- ering fol following lowing some sonic uneasiness 5 as os as a i suit ut t the temporary cur cui cur cur- ot or operations by some of oC the he larger manufacturers Sugars g showed more stability on the re re- re turn tim of normal financial 1 In Ln Cuba fleno Renewal sal al 01 ol negotiations negotiation which has been suspended on the th announcement of or th the adverse Inter Inter- commerce commission dads decisIon Ion on In the Nickel Plate case casC cas stimulated stimulate the buying ot or the rail ra hares with splendid March earn earn- reports also exerting a good l Packing companies shares turned weak on reports or of ofa orL oa a L poor first quarter by some of o tho iso leading companies An 00 |