New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-04-28
FINANCIAL AFFAIRS
STRENGTH IN STOCKS.
Success of Pennsylvania Loan Aids
Bond Market.

The great success of the Pennsylvania oond
offering practically assured in advance ana
demonstrated by the closing of the supscFip-
tions Immediately after their opening yesterday
morning was the chief factor in the strength
Of the stock market in which prices, although
moving with some irregularity in the early
trading showed general net gains at the emo Vi
the dav many of them of substantial size Inc
transactions were in fairly large volume, al
though upon a rather smaller scale than on
Friday and Saturday: and in the bond depart
nent the sales aggregated about S45OO,OOO,
heavy days business That the subscriptions
for the PENNSYLVANIA bonds are estimated by
competent authorities fully twenty times the
amount of the $4,000, 900 offered amply proves
the soundness Of the bankers judgment that
the time had arrived when an offering of long
term bonds Of the highest grade at a favorable
price level would be attractive to the investing
public: but il should be noted that the enormous
total subscription is far in excess Of the real
measure of the investment demand for these
securities as in view of the unmistakable favor
with which the announcement of the intention
to issue the bonds received. both IN the
United States and III Europe, the great majority
Of the bidders undoubtedly sent in their sub
scrptions for several times the amount of the
alIotmenls which they hoped respectively 10
receive. The bond market has naturally been
stimulated by the success Of the operation in
the Pennsylvania securities and further offer
ings may be expected in considerable volume.
now that II has been shown that investors will
invest. The Pennsylvania, however has had to
pay high price for the funds obtained by it,
and other roads Will probably have to make even
larger concessions. corresponding to the differ
ence in safety and in reputation between the
securities put by them and the bonds Of the
Pennsylvania Railroad Company. Announce
ment was made yesterday of the sale TO bankers
of comparatively small blocks of bonds by
or two companies, and in Philadelphia a loan
of nearly s6.0OO00O per cent municipal bonds
was oversubscribed several times and was
awarded a syndicate the excellent price
OF 104299.
Gold engagements were resumed yesterday
S1500,000 being taken for Paris. bringing the
total on this movement to 100000 and further
shipments are looked for. Paris is still DESTROYS
OF securing gold and obtained the entire S. OOO-
600 of the metal available in the open market in
London yesterday. taking in addition $3.50 600
from the Bank Of England The foreign ex-
change market in this city was strong rates
holding about at Saturdays level, and until the
payments for the Pennsylvania bonds placed in
Europe snail begin to be made there is likely
10 be check 10 the outward flow of gold. The
demand for the metal in Paris is probably as
Cribable largely the drain caused by subscrfp-
lions to the great German loan, bur with the re-
ceipt of very heavy subscriptions from France
and other European countries the stringency in
Germany is decreasing. is shown by the ac-
tion of the Imperial Bank of Germany in re-
ducing its minimum discount rate from ,51a per
cent TO . The statement of that institution
yesterday showed a gain Of about S15,O0O.OOO in
cash holdings for the week. Time money rates
at this centre yesterday practically with
out change from last week, but a little firmer
tone developed. especially for the longer periods
With the continued heavy movement of ca sh
from tle interior however, and a surplus reserve
of more than 5S000,000 held by the Associated
Banks OF this city, no actual tightness in the
money market is to be expected during the next
few months al least, even though the gold ex-
ports should become much heavier and the de-
positary banks OF the United States should he
called upon 10 return before midsummer AZ
much as s5000O.000 Of the governments moneys
held By them on daDosit