The morning journal-courier., 1908-05-11
FINANCIAL REVIEW
Outlook in the Investment Situation Favors New
 Financing.
INDUSTRIAL MORE DUBIOUS
Union Pacific Bond Issue Awaited With Great Intcrcst--Moncy
 Situation.

Consideration of the improvement in the investment situation as 1t fayors the plans for new financing of the rail- road corporations continued to domi- nate speculative sentiment in the sc- curities market last week, There was additional evidence that supplies oi capital would be forthcoming on good security to meet the requirements of the railroads and obviate the emhar- rassments they have been under tc carry on work necessary to the sue. cessful conduct of their business. ThC promised relief from this difficulty is oi such importance that 1t has served tc override the effect of some of the de- yelopments of less favorable nature from the side of business and industry The allotments on subscriptions to tho Pennsylvania s400O0,0O0 consolidated four per cent bonds showed an over subscription twenty times, both In New York and London, and this after elIm- mating bids for under slj,0O0 in New York, After due allowance for the high security of the bond the attractive in, vestment basis on which it was offered and the premium bid over the allot. ment prices before the bids were clos. ed, which prompted bidders to send lr over-subscriptions to secure the amount they really wanted. the trans. action was regarded as striking testi- mony to the recuperatlon of caplta supplies. The quick resale by the ui.- derwrlting syndicate at 0 good prolil of the interborough notes was corrJb- orative evidence.
 So also was the price realized fol nearly si00OO,00O of New York revenue bonds on a declining interest pasl, from 3 S-4 per cent. to 1-2 per cen. compared with the six per cent. whl;1 the city was compelled to pay on tine preceding issue of this class of o5llsa. ton. Sales of smaller amounts of less conspicuous bonds were reported fem time to time. The demand for cxlstin- bonds at the stock exchange snd through bond houses broadened mcler. ately at the same time. The coming Union Pacific bond issue Is awaited with great interest, on this accourt, a' an additional test of the stab lity of the improvement. The amount of the issue, while not announced, is expected to range from s25,OO0000 to s5O,000 OOf and the terms of the Underwriting ant the extent of the general lemanl coi ka l. L. .,l p, index of the investment outlook,
 The conspicuous place hell by the Hartman Pacifcs in .he stock marke' movement and the large centralized op' erations by houses usually employed by interests largely concerned in thosc companies created an impression that the rise in stocks was fosteraa by those interests with a view to improving con dltions for the pending Union Pacih, loan. A benevolent co1trol of the mar. ket by the great banking and iinanc,d interests In concert WIS supposed 10 bC exercised, partly for the purpose o furthering proposed new financial is sues, partly with view 10 aid in re storing general conf lante in -he tlnan. cial situation and par;ly from the con viction that conditions had i"cldeo sufficiently from the disorder of ;h' financial crisis to call for reaii lS.' ment of values of securities on the bas Is Of investment return. .
 An important factor in furtherint this view was the action of railroad officials to bring about an advance 1T the rates for freight transportation Extended conferences were held tt this end and the project was avoided as a necessary step in view of thu heavy shrnkago in traffic and the ob stacles to an adequate reductlon 1T operating cost to meet this shrink age The policy of rate advances came in for criticism and opposition not only among shippers but iron some of the railroad officials them selves, making 1t problematical whcth CT the plan could be carried out Thl' had some effect in checking the rlst in stocks and causing hesitation in thu movement. The same criticism Ina! been heard of the policy of the prin cipal iron producers to, hold prices where the stagnatiOn in demand ant the general course of prices of othei commodities is pointed to as callnt for reduction in prices to revive thu demand.
 The money market has continued easy and reserves still accumulate il banks in spite of the withdrawal o great deposits by the treasury depart ment. The continued overflow iron the treasury by reason of the curren deficit neutralizes this action. Tht gold overflow has been checked, thu Bank of France having already ef fected a substantial recuperation 0 It's holdings while foreign subscrip tions to the Pennsylvania bond issu' and the New York city revenue bond establish foreign credits agains which to draw in the foreign eX change market,
 Good crop prospects were q facto in the market, although the govern ment report was not as favorable a expected and indictment weather in tn week following the period of the re port had to be allowed for The lov figure and the movement of tn stock market after the appearance 0 the report was still strongly upward
 Rybolt--What do you call goo weather, anyway?
 rsirn4,,,nI rho kind that lyoe