Show STOCK ISTOCK VALUES I BEING STUDIED Wall Vall all Sheet Puzzles A As Dividends Ti Arc Aie Reinvested sty Ily YRON SELLER SELLEn Special Sp Correspondent nt of The Stand Stand- Standard Standard ard ard Copyright 1927 Consolidated Press Association NEW YORK July 9 The The move- move movement I mont ment of prices on the stock exchange has held the center of Interest in the I financial situation this tl s week The re reactionary re- re reactionary tendency throughout the greater Crater part of June resulted In a depreciation in total toul stock values of more than The begin begin- beginning beginning ning of July was accompanied by a turn about in the main body of stocks which continued throughout the past weck c although numerous prominent industrials and railway rall shares failed Jailed to maintain all ti-ia ti tb improvement to the end J NEW Mv LW BU BUYING ING POSITION It was evident that the June reaction reaction tion lion had mat corrected the technical position and that stocks were in a a. position again to respond to further buying operations Much has been b en heard about the reinvest reinvest- reinvestment reinvestment ment of huge year mid interest and dividend payments Because of the prevailing low yields obtainable even evenin evenIn evenIn in the more speculative e bond issues It is reasonable to assume that a good part p of these funds will lind Und their way back into the stock mar mar- market ket But how much of the recent de demand de- de demand demand mand for stocks can be attributed to this class of buying is a 1 question The chief consideration In the tile op operations op- op operations for the rise so far this year ha has been blen the ease in the money situ situ- situation It is true that brokers' brokers loans for f r the month of June Increased some to a total of 3 which brought the amount to the highest on record This compared with the previous peak of 3 recorded at the end of February 1926 just before the cul cul- culmination culmination cul- cul culmination of the bull campaign which started the previous October In the motor shares But it is reasonable to assume th-t th much of the latest in increase In- In Increase Increase crease could be set down do to the enormous of new issues which came cime upon the market early carly In Inthe Inthe inthe the period LO LOWER MONCY R RATES TES Speculative e Wall Vall street has been in inclined In- In Inclined dined to Ignore the weekly increases from time lime to time in brokers brokers' bor- bor borrowings borrowings and the latest disclosures evi evidently dently have failed to have a material effect upon calculations as to the future movement of prices s. s So long as money for stock market purposes remains in as plentiful sup sup- supply supply supply ply as it is at present the element favoring higher prices expresses lit little lit lit- littIe tie tle or no alarm over o the tendency of brokers' brokers loans to expand Call money during the past week has dropped back to the 4 per cent rate for re renewals re- re renewals renewals and has been reported avail avail- available available available able in the outside market as low lowas lowas lowas as 3 4 p pr par r cent cent- for new loans Time funds remain easy at 44 4 h per cent to 48 4 per cent and the outlook at present is for continued ease for some sometime sometime time to come comeIn I In the bond market the tendency of both the high grade crade and speculative e issues has been toward firmness Sev sev- Several eral of the newly listed unseasoned offerings have suffered rather sharp declines and this has commonly been attributed to the dissolution of vari van various various ous otis syndicates New bond offerings for the week have shown sho another falling failing fa lUng off to a total of which represents a new low record of for the year to date and compares with a total of 48 last week the previous low figure FRESH OFFERINGS HELD This development emphasizes the congestion which has come about in inthe Inthe inthe the market for new financing al although al a- though there appears to be an abundance abundance abundance ance of fresh offerings which are being withheld until the market gives some indication of having absorbed a good part pant of the recent issues which still remain in the hands of syndi syndi- syndicates cates The steel Industry Is experiencing its usual periodical slump which many are inclined to consider more than seasonal Nevertheless the market for the steel shares has held up comparative comparative- comparatively ly y well as the industry enters the sec see second second ond half year Considerable uneasiness uneasiness uneasiness ness is felt over the severe competition tion lIon prevalent in the motor industry and there is a tendency to look for price cutting later on Ef- Ef Efforts forts to curtail the tremendous out- out output output output put of domestic crude oil so far have I failed of their purpose but there is 11 a aI I disposition on the part of those fa fa fa- higher for the oil stocks to belle believe that liquidation In this group has been thorough and that any change must be for fo the better The commodity markets have worked higher but the improvement has been only gradual Spring wheat heat has been affected by reports of a black I rust scare but so far there have been no complaints of deterioration A better demand has developed in the market for both actual raw and raw vigar futures and prices at the close closer f r the week eek for the various options were v substantially above those pre pre- prevailing a week ago The market for Cubas Is reported to 11 have been cleared of all sugar at the 2 c basis and Indications point toward further Improvement The cotton arlet et has worked slightly higher jut it the trade Interests appeared to tobe tobe tobe be holding off oft awaiting the cs c's s in irl the government report Issued after ness the week-end week suspension of busi busl- business II |