The Birmingham age-herald., 1908-04-27
WEEK MARKED BY
 MORE CONFIDENCE Pennsylvania Goad Issue Domi-
 nant Factor RETURNING OF PROSPERITY Events of the Week Strongly Indicate Quick Return of Railroad Credit and General Industrial Activity.
 Collateral Influences.
RE TURNING OF PROSPERITY

New York, April 26-Speculative senti- ment, as reflected in the securities mar ket last week, took heart decidedly and stocks and bonds were absorbed with growing confidence, and increasing volume me dominant factor in causing the im- provement was the betterment of the tn- Vesting situation and the incident most relied on to point this improvement was the success of the Pennsylvania bond is sue
 It is many years since single fnan- clal transaction has been invested with so much significance as this Pennsylvania operation.
 Analogies are drawn with the s5o.o0o. ooo Lake Shore and the SlO1, ,00000O New York central bond issues in the spring of 1S97 which marked in a decisive way the re- establishment of credit and the start of that growth of prosperity in the country which ran ultimately to unprecedented heights
 The comparison offers some striking contrasts. The Vanderbilt issues were 100 year S1a per cent general refunding mort gages and the par value realized for them was heralded as marking q new era In American railroad finance. The event proved that this new basis of interest re- turn on capital was not to be permanent and was due. in large part to the pro- lonsed prostration which had preceded it. coupled with distrust and timidity of cap ital which had prompted its boarding and accumulation to q point of extreme re- dundancy.
 Terms of Issue.
 Terms of the present Pennsylvania bond issue indicates no such unwieldy plethora of idle capital. the 40-year per cent bonds hpiDU cold tn ibc iI,a,. ae which must be deducted the unknown bankers compensation. to arrive at the yield to the issue. The PennsylVania bond sale, however. has had the effect of creat- ing confidence that the revival of credit for the railroads has set in and fore shadows the arrest of the industrial and commercial contraction
 Collateral influences expected to flow from this chief development of the week played large part in the stock market improvement. The participation to the extent of half the new loan by the great banking houses of N. M. Rothsehild & Sons and Barring Bros & Co., of London has stimulated expectation of q widening interest of the foreign investors in the new issues of American securities which are known to be imminent as conditions may become propitous
 Union Pacific Issue.
 Union Pacific has been especially af- fScted, as it's plans for coming bond is sbe have been announced already and its baN'<ing connections are with Kuhn. Loeb & OE., through which the foreign partici- patioa in the Pennsylvania loan was en- listed. The heavy subscriptions for the new issue demonstrate the strength of the banking position in New York and the betterment in the investment position.
 The effect on the securities market however. while marked, has been sober and restrained, and without symptoms of speculative excitement. This restraint is partly duo to qualifying considerations in the outlook. The new financing while re- hecting marked Improvement in conditions over those of the recent past, does not indicate the full restoration of normsl conditions either of credit or of capital supply. The immediate conditions in in dustry and commerce also are not of cheering effect.