The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-17
Good News TO street.

The most gratifying announcement in
the financial district for a long time was
that made yesterday of the sale TO Ger
man and French capitalists of 100000
OF the ffteen-year debenture bonds of the
New York New Haven and Hartford
Railroad Company at a price which makes
the interest yield on the same bonds, as it
IS understood, really less than per cent.
This is the first time for several weeks
that any issue by railroad company for
other than short-term obligations has met
with public favor, and it is believed to be
the precursor of other sales of similar Sc
curities in the foreign markets. The pres
ent movement of the market makes COM
parsons interesting with that of a some
what corresponding period in the year
1903. At that time, as will be remembered,
long decline had taken place in the
stock market, the credit of our railway
companies had been greatly strained. and
these companies could not borrow in any
other way except by the sale of short
term notes As soon as il was found.
however. that money could be obtained
in this way. the discovery marked the end
of the depression in security prices that
had been going on
Bank Statement NOncOmmittaI.
After time railway obligations running
for a longer time than two or three years
and bearing interest at lower rate than
those previously sold began 10 be in de
mand. and in due course of time the
price Of investment stocks rose. Finally.
the whole stock market advanced.
In the earlier dealings to-day changes
IN prices were not conspicuous. save in
the case of a few stocks chiefly the
Anaconda Mining and Canadian Pacific
shares. in which good gains were re-
corded. and it was clear that orders to
buy stocks at any recession We're present
in greater abundance than TO sell them at
prevailing prices. Whether or not the
bank statement, when it appeared, was
more favorable than was looked for, the
fact was that after the return was pub
lished, restraints upon the underlying
strength of the market seemed to be TO a
considerable extent removed. Save in one
particular, the bank return was itself of
rather nOncOmmittal character. The cash
held by the hanks decreased S91S 900. or a
little more than was estimated yesterday
and the bank surplus increased slightly
over $l005000 The pleasing feature of
the statement was, however. a decrease
OF $4,000 In the bank loans. the first
time in a long period when such a reduc-
ton has taken place.
Becomes Strong at Finish.
However caused, the strength Of the
market became pronounced in the remain
ing half hour of business. Especially
strong buying developed in the Union
Pacific, Great Northern preferred, Penn
sylvania, and all the leading stocks. and
the market closed at a greater average
net advance than was recorded yesterday.
Sterling exchange again developed ease
to-day in consequence, as was supposed,
of the news of the sale of the New Haven
notes to foreign capitalists. The presump-
ton is, Of course. that remittances of
money To this side because Of this trans
action viii result later on in pressure
of sterling bills IN the exchange market
Spectators engaged in fighting the ad-
vancing tendency of the market made as
much capital as they could naturally dur
ing the week out of the falling of in rail-
road earnings that are now reported
The real matter of note in this regard
is that the falling of is no greater than
has actually occurred. In the month of
January last year railroad gross earnings
Increased over IS per cent over those of
the year before. these earnings, too, COM
ing at the end of a series of successive
increases in previous years. Considering
a practical stoppage of railway traffic in
the Northwest. it is only a matter of sur
prise that railway earnings for January
this year exhibited any increase what
ever