Tax fears unsettled the market today, with activity increasing and the Dow-Jones Industrials Average breaking below the crucial 150.00 level. Accompanying the decline was an 4ncohfirmed rumour which ind cated that Congress was preparing a tax levy against soft drinks, Loft, Me, which is a large holder of Pep: Cola stocks, came in for heavy selling. Trading in Loft, so far, during the present year hag amounted to 5 per cent, of all the business done on the Stock Exchange; Standard Brands is listed as second in volume; and. Radio Corporation third.
By Courtesy of Swan, Culbertson & Fritz The upward trend displayed by the stock market in the first few session, of the New Year failed to carry through and a definitely reactionary tendency was evident during the past week. There was some accumulation of investment issues and a few stocks reached their highest figures since 1938, but traders '@enerally were cautious pending a clarification of existing uncertainties in connection with the European war and the domestic political outlook. Prime Minister Mrs. Chamberlain forecast a prolonged struggle and an intensification of hostilities this Spring while on the other hand President Roosevelt expressed to churchmen the hope that there would be better response during the forthcoming months to peace efforts. At the Jack-ton Dey dinners, commemorating founding of the Democratic party, President gave no indication as to his attitude toward a third term but the fact chat mention of a third term by other speakers evoked no subsequent rebuke from him was interpreted to mean that he was in a receptive mood and this exerted a dampening influence on market sentiment. Thursday's sharp decline was attributed primarily to fears of increased taxes on soft drinks and a 10 per cent. super-tax for defence on corporate and individual incomes. The volume of trading remained small and exceeded the 800,000 share mark only on Thursday.
Most commodities were also on the easy side. Cotton held fairly stead: with trade and foreign demand absorbing liquidation and hedging. Wheat declined on further beneficial snows poor foreign demand and the weakness of the Argentine market but later strengthened on reports that Great Britain had purchased 20,000,000 bushels in Winnipeg. Rubber was the best performer in response to ike good factory demand for actuals and prospects of export taxes by producing countries. Hides were actively liquidated because of the disappointing tanner demand. Suger was dull London, Jan. 10, Messrs, Montagu and Company, in their weekly bullion letter, write: The London silver market opened the week under review with a fall in prices, Offerings were only moderate, and the decline was mainly due to a lack of support, A recovery, however, ensued, helped By Indian Bazaar buying.
la feature has been the movement by Bazaars to advance forward contracts, in order to secure silver for prompt shipment, which affected the premium on the cash quotation. Reuter, and irregular at levels only slightly above its 1939 low while cocoa declined on liquidation by tired longs. favourable, Aaler improvement in The business. ws was generally
steel operatiohe indicated a good re. covery from the holiday let-down and steel shipments during December were 33000 tons greater than in November and at the highest figure since April 1937. General Motors" factory sales for 1939 were up 39.2 per cent. over the previous year and General Electric's bookings for the fourth quarter were nearly 80 per cent. ahead of 1988. Great Britain and France are expected to purchase 10000 American airplanes during the next year-and-a-half, The breaking off of negotiations for trade treaties with Argentina and Uruguay indicated that expansion of trade between the United States and South America is going to be difficult to accomplish. Congress is settling down to work and indications as to its attitude concerning new taxes and o revision of the Wagner Labour Act are eagerly awaited.
Text read from the printed page and cleaned; old type leaves the occasional error.