The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-23

Christmas trade has been of larger pro-
portions than ever before, and while
no doubt a good proportion Of the pur-
ehases has been charged or paid by check,
there is no doubt that a great many
people have paid cash, the accumula-
lions of weeks of savings. and that this
money viii in the very near future find
its way TO the places where it is most
needed, and where the best rates can be
obtained for its use.
The Pennsylvania 81 per cent eonverti-
bic bonds of 1915 are now selling on a
basis to yield ~ per cent on the invest
ment, If held to maturity. These bonds
are among the few issues for which there
is "A fair demand at present. their market
price and the convertible feature combin-
ing 10 give them both investment and
speculative value to a degree but rarely
found in a single security In view OF
the progress which has been made with
the vast improvement projects OF the
Pennsylvania Railroad and the compare
lively near approach of the time when the
company will begin 20 receive revenue
from It's most important improvements,
there can be no question as to the entire
ability Of the road TO take care Of the
charges en- its bonds under any kind Of
circumstances that may arise As the con-
veTtbles of 1915 are selling. the yield is
as good could be expected on a bond
Of safe character the cOuvertibiity. which
is equivalent TO an eight-year call en-
Pennsylvania stock. appears TO be at pres
ent something in the nature Of possibly
valuable prize packet given away for
nothing.
with the right to build its connecting
railroad Pennsylvania is In position to
promise relief from the freight bIockades
that In times of very heavy traffic and in
severe winter weather have often occurred
at the junction terminal AS soon as the
necessary through connection can be
made between the Long Island and the
New York, New Haven and Hartford
all the freight coming over the Pennsyl-
yania lines FOR New England points will
be sent By way Of Greenvilfe and Bay
Ridge practically outside OF the metro
politaU district. and the junction jermi-
nails. relieved Of il, VIII be ample for the
efficient disposal Of all other business.
Il cannot imagine greater folly" said
OF some OF our big speculative operators
who. when they found that there was not
money enough here 10 sustain their opera
lions. went abroad and borrowed from
Europe / wonder if il ever occurred 20
them what was the consequence OF this
course. To begin with. IL will be admitted
that our prosperity depends largely on
our ability 90 sell our products abroad.
~
is so essential % a condition Of prosperity
here that I do not see how any one AT
an interested in the welfare ~ she coun-
try can ignore IT, And what do those
who go abroad TO borrow money for thu
purpose Of stock speculation do but cur
tail the ability of our best customers 20
buy what We have % SELF In their pres
ent greed they forget the future. de-
stToying by degrees the very foundation
on which a ball market IS laid
one Of the largest commission houses
in the street says in its weekly market
letter.
The week has been one of continued
stress, becoming at times almost uncanny
in its outlook. The money market Geethed
and boiled, each event adding fuel no
matter what its significance might have
been under normal conditions The mys-
terry OF the preceding week surrounding
ST. Paul was dissipated IN a veritable
cloudburst, adding ID the general disc0m-
fort. II developed that a plan OF the
greatest magnitude, and requiring the
most favorable conditions for proper
fruition. was rushed through hastily under
pressure OF threatening Western legisla-
ton intending % block the operations Of
financing a vast project from which the
West viii eventually reap untold benefits
This premature putting out OF jhe
matter dumped $lo0G09.00G Of new rights
for the consideration OF a market already
c0ngested with material Of the same sort
and called for immediate decision as so
the exercise Of valuable options which no
body had the money 10 pay for The
necessity for fiat SlaolU600 Of new
money on December 81 was part of the
seQUentiaI demand. and this coming upon
a condition as 10 money which has rarely
been equaied, save in panic periods. il
is not strange that such part Of the
speculative holdings as We're at an in the
condition Of hanging by the eyelids should
drop OF"