Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-09-19

by the city of New York was a dis
tinct success; the subscriptions were
more than fivefold the amount offered.
But from the viewpoint of the bond
| and investment market the result was
not so reassuring. The securities Of
fered are tax-exempt; and when the
tax is considered they rank as per
cent security, for which 102-about the
average price obtained--is certainly
not favorable basis for distribution
when it is considered they have be-
hind them the credit of the metropolis
of the nation The sale indicates that
we are clearly on a new investment
basis, and this in turn means that
other high-grade bonds must come
nearer to this basis. The result of the
sale naturally failed to stimulate the
quotations Of stock exchange securi-
ties There had been quite substantial
activity, especially by professionals, in
purchasing in anticipation of large
oversubscription; and experienced OPP
orators began selling both in the form
of profit-taking on these anticipatory
purchases and on short account even
/ before the proposals were opened, on
the ground that last weeks advance
| had fully discounted successful Of
! fering and that any unsatisfactory
features of the sale would be very
promptly reflected. The course of the
market fully justified the snundness of.
the argument.
Call Rates Are Easier
4 The week has seen somewhat of a
change in the money situation. Rental
rates for time funds are rather easier,
while call accommodation is still fur
Their restricted. Coincident with the
Offering of securities by the munich
pal government, the final instalment
of $4,000, 900 was paid over on Tues
day by the underwriting syndicate that
financed the $75,000.O00 convertible
bond issue of the Union Pacific Rail-
road company; this caused tempo
rary furry in call rates to 61s per
cent; but there was somewhat of a
reaction from this figure later in the
week Rates, however, did not reach
the low range that has recently been
SO general, and as we are at the be-
ginning and not at the end of the crop
moving period 1t is hardly probable
that any return to the low figures viii
occur this year. feature of the week
has been the drawing in of call loans
by some of the large Interests who
were prominent in bidding for the city
bonds and the distribution of the same
among the larger commission houses
for fixed terms, chiefly for six months
at per cent, though in Some in
stances the term merely covered the
turn of the year. There is of course.
the Interpretation to be given this ac-
ton that these large interests are
themselves better satisfied to lend their
money at good advantage than to in
vest in securities even at the present
low range of quotations.
Banks Refuse Copper Loans.
The copper situation has been a fur
Their source Of depression. prices of me
metal being still further REDUCED, while
tendency of banking interests to re-
fuse accommodation to carry additions
to the large stocks the copper COM
panies have on hand has brought af-
fairs in this direction to crisis and
forced upon the leading copper pro-
ducers the deslrability of restricting
production to prevent the accumula-
ton of their products becoming UNI
manageable Added to this. tho illness
of the leader who has to great ex-
tent been the, dominating influence in
Amalgamated Coppers policy leaves
the situation in a much more unset
tied condition than If he We're at the
helm. In the case of copper We have
what may be termed the first distinct
4 signs of overproduction at inflated
prices and of the dependence of all
the great products upon the money
market for banking facilities to finance
them until they can enter cOnsump-
ton. Under ordinary conditions 1t car
only be a question of time when Other
products must give way before an en-
forced contraction of the demand.
Construction Must Decline.
With capital tied up as 1t is today In
4 absolutely fixed form, general building
and construction must necessarily
gradually decline; mortgages, for in
4 stance, cannot be obtained on such 9
+ basis as to permit building operations
/. to be conducted at the tremendou'
pace established during the last few
81 years; the railroads.&c. greatest fac
tors in the iron and steel trade-can-
4 not obtain funds on sufficiently favor
. able terms so that they can purchase
rails in quantities above what are alb
solutely necessary or purchase con.
struction material for bridges ard
terminals; and the same spirit OF cur
tailment must naturally spread 10 81
mechanical industries. This is Il fea'
ture that 1t is well to consider in con-