New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-20
Uncertainty In govern.

! 4,
vastly facilitated-there is national help for IA
tionaI prosperity. Incidentally 1t is a consider
ton not to be ignored-that one Of the most I'm,
portant interests In the Pennsylvania RaiIroaa
has within the past two months acquired larg.
investment interest in Mexican Central shares
Union Pacific Louisville and Nashville Nav
York Central Pennsylvania, Jersey Central
those properties which are representative OF hes.
business Observation-Disclosures in especial 70
quest. In some conspicuous quarters suggestive
nervousness shows among professional speculat
ors short Of the general list-notabIy so In thu
I local fractions. In Sugar Trust, New-York Al,
Brake and the high priced electric companies
new interests have been acquired this week bv
one group Of investment bankers.
AS to money market conditions. some oracle,
grow excited. Yet despite volumes OF gurgIIng
pessimism. yesterdays. bank statement refused
to disclose anything else than agreeable mona
tary conditions. while two institutions-Chicago
/ institutions. even-come calmly forward with
offers to supply S2OOO0OO0 each on call loans II
New York happens to care for the funds One
of these is the First National Bank and ths
| other John J. MitchelTs Illinois Trust. Mean
while current funds on call are in actual sur
felt at 21z per cent. OF money market rules one
is safe always-the rates the thing
At the close Of the week I have sought the
judgment of a number of our foremost invest
ynent houses as TO actual conditions in the bond
market-the extent OF investment buying-and
future tendencies. Here are representative sx-
pressions OF opinion:
KOUNTzE BROTHERs:-"we find conditions
in the Bond Market at the present time TO be
quite satisfactory, and the investment demand
is quite extensive and, in our Judgment, broad
ening. Under the existing promising conditions
the prospects for the immediate future IN our
opinion, favorable for increased business
and advancing prices"
FARSON. LEACH & Cove would sum
Marie the present conditions rejecting
strong and active demand at advancing prices
Tor all high grade and well known securities
| whether municipal. railroad. industrial, OF
otlef corporations This denotes 70 US an al
most complete restoration of confidence in the
securities Of enterprises that have weathered
Inc recent financial disturbance This conh-
dence, however does not Yet seem to be 50 COM
pletely at rest as TO permit successful hota-
ton Of securities of new or untried enterprses
but IS likely TO follow in such directions after
the advance In the established securities shall
have reached point where the rate OF income
is not satisfactory to the average investor. AS
10 future probabilities, We look in the absence
of any unusual or unforeseen occurrences which
may cause a serious disturbance in the financial
World, for continued demand for securities u
undoubted character which demand viii no
dount hnally extend TO those Of second class.
such as bonds issued under junior mortgages.
collateral trust utility and public service cor
poration issues or municipal bonds Of couruni-
Ties not well or taVOrably known. We would
not be surprised if coming events were about 70
cast their shadows before-by an active antici-
patton OF the usual January demand for invest
ment securities"
CHARLES MINZESHEIMER & co: Actual
conditions in the bond market at the present
time may be considered as favorable. the extent
Of investment buying in the case of some issues
being very much greater than the supply The
oVersubscrlptIOn of certain new issues fully
bears out this statement There is no question
put that the prices OF absolute first mortgage
bonds have reached point where the return
produces d very small income. and for this rea-
son large amounts Of consolidated second mort
gage securities are being absorbed. II is quite
| evident that the refunding operations during
the last rev years OF = per cent and o per cent
bonds into 4 per cent and Si2 per cent issues.
have impaired degree Of safety 10 Junior Sc
curltes that they have never experienced before.
There is also no doubt but that during the past
TWO months an enormous amount of liquidation.
oceasloned by the rise in stocks. has realized a
great sum OF money, considerable of which has
found It's way into bonds Relatively, good
many Of these pay much on the investment
as the stocks Of the same company produce, and
many people. in days like these. prefer by the
ownership of bonds to become creditors, instead
of partners. when their ownership consists in
stock of the same corporation We see no rea-
son TO DOUBT that the present absorption VIII
continue pretty well into the first of the year
presupposins the fact that no untoward circum-
stances viii tend 10 cause any unusual strlu-
gency in the money market
REDMOND & co: In our opinion the bond
market has never been in better condition-ths
only trouble being the lack of material 70 sup
ply the demand The buying power is enor-
nous and comes from every class Of private
investors and institutions. not only here but
throughout the entire country and abroad as
well. We see no reason in sight for diminution
of the demand The cause, We believe, OF this
condition of affairs is that people and iDstitu-
tons up 10 a couple of months ago had not been
investing for several years. and in a great many
instances have been waiting until after election
before doing anything. Now are getting the
result Of several years purchasing power al at
once"
HOLLIsTER & BABCOCK: In business
matters. as in other affairs, one OF the most I'M
portant moving factors is confidence, for two
years past ibis unfortunately has been lack
ing. and ii is only Of comparative recent date
that IL has reappeared. The investing pubic
quick to appreciate such situations. and for
d long time they declined 70 invest preterrlns
to keep their cash, to-day. inspired oy conn
derCe which is based on a good foundation, -heIr
money chests are opened, and the demand Tor
investment Is as great as the almost unlimited
amount of money available for such uses. Rare
ly nave we seen so unclOuded horizon LOT iN7
business interests Of this country. and The rising
tide must. in our judgment carry with II an
increasing investment demand"
vERMILYE & co: The demand for bonds
is quite as large as is popularity estimated, ana
the character of the buying is what IL snou4u
be In our Judgment there viii be further ex-
pansion in the volume OF this ouyin 80
naturally, further appreciation in market Va!4s
That gilt edge bonds have. through aoSorpuoI'
become exceedingly scarce, Is. OF course kio"Iss
TO everybody, and the available supply "
high class issues wherein prOnt may De -
peCted through the increased value OF tAs
principal has become materially reouce9-so
urgent has been the investment demand. BUY
ers seem TO be of every clasS-lnctQdlhs Il'
great financial institutions OF the MetFopoIs
bankers throughout the country brokers iscVs-
nizing the opportunity 20 reSell soon a. a9sa-GS'
and-mOSt important or ali-lhe AAu4N4uud1 ~
weston II is of course, easy 10 account for
this large diversified demand-nvestors having
been for a variety OF causes kept IN nervousness
and daDress.on for long time past. Good crops
and good election results restore good Iee-Is-
Money which has been hoarded comes TOW aSt