The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-05-20
BOND BROKERS IN
DEsPONDENT MOOD
Stagnation in the Market-All-
Signs Favorable in -
Stocks.
Special to The Journal.

Special 10 IEe J0uT1a1.
New York, May, 19;-An absolutely
dormant condition rules in the bond
market, comparing in it's ut ter hfeless-
ness with the situation OF 1908, tho
fortunately the quality Of: the goods
now offered is decidedly better. In
some quarters indications of a reriving
demand from investors are noted althO
most of the bond houses continue de-
spondent over the outlook. Until the
corporation mill, ceases to grind eOut
new securities, competent observers
maintain that no marked relief need be
expected. Moreover, the demands of
business cause inquiry for increased
capital. and the easier money conditions
are likely, therefore, to be coincident
with renewed outpouring of new stocks
and bonds. The railroads, however,
will probably resort to f'hort.time note
issues on time money basis, since
percent bonds are likely to continue a
drug for months to come. information
al banking houses are turning their at
tention abroad, where discount rates
ar emore favorable, in the hope Of in
ducing the foreign inv estor to take
over a portion of the un digested under
writings. 1t is believed that with the
Paris rate showing a downward tend
ency. success may attic nd the attempt
in that direction, tho tlle large Russian
and other government loans must have
satiated the demand.
The PENNSYLVANIA company. after ne
gotiating for some wee ks, finally seized
the opportunity Of an improved money
market to announce it's $50,000,000 AZ
per cent note issue, VIII ich was taken by
banking interests here, and abroad on
as per cent basis. Doubtless this will
be followed by offering from railroad
and. industrial corpora tions in urgent
need of funds to provi de additional ia
cilities The announcer tent of the Penn
sylvania note issue as not regarded
as bullish factor. So brokers char
acterized the renewed draft upon the
money market by Cass'1tt's company in
no measured terms. Coming at a time
when the bond market is glutted with
gilt-edged securities, / he effect is not
to stimulate investment in per cent
issues Of course, it is realizezd that
the Pennsylvania improvements will III
timately rebound to the advantage of
the stockholders. II wish the bank
ers had charged the Pennsylvania 1C
per cent instead Of 5 per cent for ac
commodation, remarked a broker
mCaSsatt seems ito to haze haze faGu1ty Of
matter how he may disturb the calcula
lions of other prospective borrowers
!. So long as this thing goes en-, talk Of 6
bull campaign in Wall street is ridicu
lous. - -.
The body Of spectators. playing fo7
a reaction in the stock market is grow
ing larger daily, but the more promi
nent members of the uptown party still
adhere to the opinion that prices of sc
eurities will continue to advance with
out anything more than a slight reac
tion. More Of the short interest wa
driven to cover recently. and the re
mainder of the bear party is admitted,
becoming very nervous. The technica
position, of the market has been some
what weakened by the elimination Of /
large short interest, but shrewd judge
still declare that there exists an I'm
wieldly account for the fall. Som
heavy realizing has been noted, but tn
manner in which stocks were ABSORBED
at advancing prices is the subject O
favorable comment.
g Comment is heard regarding the prob
able outstanding short interest. TIL
loan crowd would seem to indicate tina
commitments, altho Baltimore & Ohio
Canadian Pacific and Atchison are il
demand. Amalgamated, il is claimed
Is still being borrowed privately quit
1 heavily. This leads to the inferenc
that Standard Oil interests are endeav
oring to foster short interest in OF
der to facilitate an advance later or
traders are perpleXeQ DV Ine neaV
tone displayed by Union Pacific, sue
costing that there has been inside sell
ing. The Hartman interests have tn
reputation of putting out stock afte
extended advances. Incidenta tally, the
give little hope Of an early increase i
The dividend rate or extra Distribute
out of the Northern Securities asset!
tho still talking bullishly on the stoc
for long pull.
Fortunately for Wall street, bus
ness continues good, while the GRO
outlook is thus far all that could +
expected, winter wheat being especial
promising The large expenditure
which will be made in the reeonstru
lion of the Pacific coast city doubles