The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1908-05-28
IMPROVEMENT IN
INVESTMENT DEMAND
IS STRONG. FEATURE

NEW YORK. May 27.-The signal
contraction in the volume OF the
stock market was the most notable
feature about it today. Dizziness
uvercame the dealings after the ex-
detrimental attempt to continue the
advance of yesterday. When it he
came manifest that no important OPP
erations were following this rise in
prices II was concluded that the spon-
sors for the market were satisfied
with the protection they had afforded
against the acute depression at the
end of last week. Their manifest
disinelination To follow the advance
with buying prompted to the late
fresh outpouring of stocks.
Some influence was allowed 10 the
sale of Chicago. Burlington 4 Quincy
bonds on the causing of the early
advance in prices The intention to
issue these bonds had not been heard
of when the market closed yesterday
and the subscription OF 6,Voo,O0o
was announced almost as soon as
business had commenced. The sub
scription price was - Z as compared
with gG. at which Pennsylvania CON
soils Is we're sold Modifying condi-
lions In the comparison were the
large amount of the total authorized
for the new issue. he 0,ooo,000
being larger than has even before
been authorized by an American rail,
road. and the lower lien of the Bur
lington bonds.
The difference was indicated in the
price al which the new bonds were
sold when issued" ON the curb, the
first sale at 9S being subsequently
shaded to below 81, while in the case
of PENNSYLVANIA bonds par was reach
ed before the subscriptions were
closed. The quick sale of the offer
ing and the price realized for IL were
Judged by bond men TO represent an
Improvement over the bond market
position as compared with the Penn
sylvania sales. The deductions drawn
from the incident were considered
important \ free supply OF capital
for fixed investment was inferred,
and on the whole at improved terms
for the borrower. This insurance OF
supply of funds makes for revival
in demand for commodities for when
the funds will be expended. II was
assumed that the sale would improve
the prospect for the Union Pacihc
financing, which II is supposed is now
awaiting the adjustment of differ
ence as TO terms between the capital
and the underwriters. There are
plenty of other financial plans de-
pendent on betterment in the in
vestment demand, so that symptoms
of that are regarded with interest.
The stated purpose of the Burlington
issue, TO reimburse the company S
treasury for OUTLAWS already made for
betterments and additions, would
help to explain the persistence of re-
ports of an extra distribution of
Northern Pacific and Great Northern
stock, as those companies would
profit as burlington stockholders.
While this incident was thus given
a favorable Interpretation, II proved
powerless TO renew the upward move
ment of stock prices. Rather, 1t was
taken advantage of to resume the
selling to take profits as was the
gorwing tendency on favorabel news
announcements of last week Lon
don was a free seller of stocks here
early in the day. Reports of Hood
damage and the sensitiveness of the
com modltleS markets 10 crop NEWS
were not regarded fayorably. De-
clines in discount rates in London
and Berlin marked the decreasing
| force of the probable demand for gold
in New York. At the same time
western money markets reported a
gradual change in the course of the
currency movement which marks the
approach of the crop moving season.
! Any further decline in interest rates
here seems to be arrested although
there is no positive rise In rates yet
to record. The late break in prices
was a direct respon to the contrary
movement In the price of wheat
Bonds were irregular. Total sales,
par value, $2.29S.000. United States
bonds were unchanged on call.
4