Show STOCKS MAKING PRICE ADVANCES Optimism Among Invest Investors ors Responsible for Better Tone By BYRON SELLER Special Correspondent of The Standard Examiner I Copyright 1027 b by br Consolidated Tress Press Association NEW NE YORK July The The out out- outstanding outstanding standing development dc of ot the pas past i week in the financial situation has been the appreciation tion ton in securities prices on the stock exchange It I can be salt said that tha almost without reservation reser aton this has come about as the result resul or of conditions within the market marke Itself rather than any fundamental change In outside business The steel trade has Ims entered a I period of or seasonal recession In operations at the steel centers so that tie the te market for the steel stel stocks finds little incentive in re reports re reports re- re reports ports from the mills mis upon which to base bue constructive operations Nevertheless United States Steel Just before the close cose of the week sold at the highest since the 40 per cent stock dividend was wn de de- deducted deducted de- de ducted dueled from the price EXPECT GOOD REPORTS So far estimates of or what second quarter reports of or o the steel com corn companies companies will wi disclose have been problematical But Dut speculative Wall Wali Wal street has been Inclined to anticipate more favorable fa show scow ings lags than were indicated at the beginning of oC the period It I will willbe wf willbe be interesting to note as these reports come to hand band next week whether the renewed campaign for or higher prices for steel shares has been Justified General Motor Motor- and United States Steel provided the back backS background ground of or other sea sea- seasoned seasoned Industrials The TIle keen com competition petition petton which eventually must mus make itself visible In the motor industry has bas been lost sight of or In Inthe Inthe inthe the recent calculations The op Ope remarks of or President Erskine of or the Studebaker corpo corporation ration raton concerning results of or the first six months and what can be bp expected for the te remainder of the year rear found Cound a ready response in the market for Studebaker which has been under pronounced pressure recently MAY FORM COMBINE Talk also has been heard of the formation of or a holding company with wih a view to acquiring a num num- number number number ber of ot the smaller companies which might ultimately mean con con- consolidation consolidation into one huge combine This has bas been reflected in an active e demand for Cor Jordan Motor Gardner and several others in inthis Inthis inthis this category although it I is a question Queston whether this was the main Incentive Incent e for Cor the recent buying buying- That the market Is under con con- control trot of powerful Interests has been evident by the action acton of or stocks stock like Baldwin Locomotive and others where the floating supply is small smal Operations for forthe forthe forthe the rise in almost C ery instance E have encountered little or no op op- op position Baldwin sold this week at Its Is highest price in history and there Is nothing to indicate that the short interest has hac haf suc sue succeeded succeeded In obtaining Its Is require require- requirements ments meats of the stock Wall Wal street received R a I rather unexpected s prise st- st last week when it was disclosed that brok brok- brokers brokers brokers' ers ers' loans for the month of June had Increased over But the decrease of or over or o r In the week ended July 15 15 restored speculative confidence encouraged the belief bele that the technical structure of or the market marlet was not seriously impaired An An- Another Another other instance of or the continued piling up of or credit resources was the fact that during durIns the latter later period the ratio rato of ot reserves foi for forthe the federal federl reserve stem as a whole had increased from Crom 6 the previous pevIous week to 78 per cent and compared comparet with wih 74 79 9 per cent a jear year ago NEW HAVEN RECOVERY One of oC the outstanding features bearing upon the railway situa situation siua tion ton was the announcement that the New York New rev Haven Hartford was considering the tho is is- issuance suanee of or 7 per cent c nt cumulative preferred stock to be convertible at par Into This was an Instance of ot the recovery which has occurred In the s s of or the road during the past few years and the fact that it i was now in ina ina a position to do new financing in inthe Inthe inthe the form of or stock rather than bonds was vas significant How low the money obtained through the con con- contemplated new issue is I to be used was not made Known knon but it was Intimated that plans wee we e under consideration for refunding a pore par tion ton of the indebtedness to the government The high high grade grade dividend play play- playIng ing tag rails rais continued to feel the ef er- ef- ef effect fee of or the reinvestment of mid mid- Jear ear Interest and dividend pay pay- payments ments although Interests In hi i close touch with wih the tho market for rail raU railroad railroad road stocks were expressing the opinion that the buying of or this character has not as yet jet et made its is appearance to to a degree that might have been expected Although Albough new bond offerings totaled compared with L last list week there lb has S been a noticeable lull lul in the th S market for new securities Not Notwithstanding rot Notwithstanding withstanding the slight increase the total for the last three weeks has bas been less than Nevertheless le the stock market L fails fals to be influenced by this con condition dlton and there are indications indication I that the unsold portion porton of oC recent I syndicate offerings are difficult to tc S dispose of oC despite despie the concessions In prices from Crom the original sub subscription subscription fIgures figure The Tho bond mar mar- market ket Icet has displayed a somewhat firmer tone but has been over over- overshadowed overshadowed I shadowed by developments de In the stock market I a aL L |