The Montgomery advertiser., 1908-04-27
FINANCIAL REVIEW.

New York, April 26.--Speculative sentiment. as reflected in the securities market last week took heart decidedly and stocks and bonds were absorbed with growing confidence and increas- ing volume.
 The dominent factor in causing the improvement was the betterment of the investment situation and the incident most relied on to the point this move ment was the success of the Pennsyl- vania bond issue. It is many. years since a single financial transaction has been invested with SO much signfh- canoe as this Pennsylvania operation. :. Analogies are drawn with the $bO,o0O.- GOO Lake Shore and the $10,000 900 New York Central bond issues in the spring of 1897, which marked in decisive way the re- establishment of credit and the start of the growth of prosperity in the country which ran ultimately to unprecedented heights. The comparf- son offers some striking contrasts. The Vanderbilt issues were 100 year l-2 per cent general refunding mortgages and the par value realized TOT them was heralded as marking a new era in American railroad finance. The event proved that this new basis of interest return on capital was not to be permanent and was due, in large part. to the prolonged prostration which had prompted 1t. coupled with distrust and timidity of capital which had prompted its hoarding and accu- mutation to 6 point of extreme redun- dancy. Terms of the present Pennsyl- yania bond issue indicates no such un- wieldly plethora of idle capital. the forty year four per cent bonds being sold to subscribers at ninety-sfx, from 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 creating confidence that the reviVal of credit for the railroads has set In ana foreshadows the arrest of the in- dustrial contraction.
 Collateral influences expected to flow from this chief development Of the work played a large part in the stock market improvement. The participa- ton to the extent of half the new loan by the great banking houses or N. M Roth schild and Sons, and Bar ing Brothers and Company. of London. has stimulated expectation of widen ing interest of the foreign investors in the new Issues of American securi- ties which are known to be imminent as conditions may become propttious. Union Pacific has been especially af- fected. as its plans for a coming bond issue have been announced already and it's banking connections are with Kuhn, Loeb and Company through which the foreign participation in the Pennsylva- mia loan was enlisted. The heavy sub scriptions for the new issue demon strate the strength of the banking po- sition in New York and the better ment in the investments position.
 The effect on the securities market, however while marked. has been sober and restrained and without symptoms of speculative excitement. This re- straint is partly due to qualifying con- alterations in the outlook. The new financing, while reflecting marked im- provement In conditions over those of the recent past, does not indicate the full restoration of normal conditions either of credit or of capital supply. The immediate conditions in industry and commerce, also. are not of cheer ing effect.