The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-04-27
Sale Of Pennsylvania Bond Issue
Marks the Beginning Of
Improvement.
REVIVAL OF CREDIT
Full Restoration Of Confidence Is
Lacking-Outlook Is Not
Wholly Satisfactory

NEW YORK, April 26.--Speculative
sentiment as reflected In the securities
market last week took part decidedly.
and stocks and bonds were absorbed
| with growing confidence and increas-
ing volume.
The dominant factor in causing tbs
improvement was the betterment OF the
investment situation, and the incident
most relied upon to point this improve
vania bond issue. 1t is many years
since a single financial transaction has
been invested with so much sgniH-
canoe as this Pennsylvania operation.
Analogies are drawn with the $780,
100000 Lake Shore and the 100000
600 New York Central bond issues In
the spring of 1897, which marked in
a decisive way the establishment
OF credit and the start Of that growth
of prosperity In the country, which
ran ultimately to unprecedented
heights.
Some Comparisons.
The comparison offers some striking
contrasts. The Vanderbilt issues were
100 year 1-2 per cent. general -e-
funding mortgages, and the par value
marking new era in American rail-
road 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 prostrationI
which had preceded 1t. coupled with
distrust and timidity of capital. which
had prompted It's boarding and accu-
mutation to a point OF extremt redun
a ~ la
sylvania bond issue indicates no such
unwieldy plethora OF idle capital, the
forty-year per cent. bonds being sold
to subscribers at 96, 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 Great
ing confidence that the revival OF credit
of the railroads has set In and fore
shadows the arrest of the industrial
and commercial contraction.
Interest Abroad.
Collateral influences expected to flow
from this chief development of the |
week played large part in the stock
market Improvement. The participa-
tion to the extent OF half the new
N. NJ. Rothschild & Sons and Barring |
Brothers &: Company. of London. has
expectation to widening In
terest on the part of the foreign In
vestors in the new issues of American
securities which are known to be i'm
minent as conditions may become pro-
pitiou.
Union Pacific has been especially at
fected as Its plans for a coming bond |
issue have been announced already, and
its banking connections are with
Kuhn, Loeb & Company through which
the foreign participation in the Penn
sylvania loan was enlisted. The heavy
subscriptions for the new issue demon
strate the strength of the banking po-
sition in New York and the better
ment in the investment position. The
effect on the securities market how
ever, while marked, has been sober
and restrained and without symptoms
OF speculative excitement. This re-
straint is partly due to qualifying con-
siderations In the outlook. The new
financing. while rejecting marked i'm
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.