The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-04-25
Europeans Ready 10 Loan Money
to America.
Shown by Acceptance of Penn
sylvania Bonds.
U.P.&N.Y. C.TO FOLLOW
To Pay Low Rates for Large
Borrowers.
Other Items of Interest in
Railway Circles.

instead OF the first important an
nouncement of new railroad fnancier-
ing causing securities to decline. the
authoritative intimation that the
pennsylvania Railroad company is
about to issue $40,O00,O00 per cent
bonds actually caused that stock to
advance, the net change being a frac-
ional gain. Official particulars will
not De available until after the Penn
savanna directors meet again but
from trustworthy sources it has been
learned that the money will cost the
company less than any large borrower
has paid in years. 1t is understood
tnat, including the underwriters com
mission, the new capital will not cost
Tn pennsylvania more than AZ per cent
Tn. In underwriting has already been
arragned and large part of the
$40,00O,OOO tentatively disposed of in
europe and in this country The at
t1tude OF foreign investors toward this
new loan, the first to be foated since
Ine panic. viii be closely followed. The
pennsylvania appeals to Europe for
money under more favorable circum-
stances than will be possible for. say.
the Union Pacific, since it will be re-
membered that the Pennsylvania two
years ago had little difficulty in sell
ing about $50, 200 900 of bonds abroad.
chiefly in France. It is true that since
then grave doubts have arisen as to
the wisdom of spending such enor-
nous sums on extensions not imme-
diately productive, and that earnings.
not only in the case of the PennsyI-
vania, but of New York Central, Atch-
1son, Erie and other roads, have fallen
OF to an extent that prohibits the
maintenance of the unnecessarily high
rates established during the artificial
ly stimulated boom. An abundantly
secured per cent bond of the great
est railroad in the United States should
appeal. however, to conservative in
vestors abroad, and Judging by the
over-subscription of recent loans there
is no want of available capital both
on the continent and in Great Britain.
The foreign exchange situation will
be materially affected by the new fin
nounced. If the Pennsylvania railroad
can succeed in placing 100000 900 of
bonds in Europe this amount will have
to be RENTED to this country either
direct, or applied to the liquidation of
American debts abroad an operation
that would, of course, initiate against
a broadening of the outward move
ment from New York. The Union Pa
cif1c, it is believed, is also DESTROYS of
raising capital on the other side; the
first mortgage bonds Shortly to be is
sued, the management, hopes, will ap-
peal strongly to foreigners. 1t is also
probable that the New York CentraFs
influential bankers will dispose of new
securities among their oversee follow-
ing. Much will depend upon the re-
ception accorded the Pennsylvania is
sue. No more gold was engaged for
export yesterday, but tentative ar
rangements were made to ship several
million dollars by today's steamer.
Sterling touched a new high point for
the year last night, 47Sss, and bankers
reported a striking absence of remit
lance. An idea of the continents anx-
iety to secure the metal is afforded
by the keen competition for the new
gold offered in London yesterday; the
price advanced to IT'S 10ssd, and this
also will tend to attract gold to Eur
ope. Paris took practically the whole
| of the s.. 500 900 sold.