The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-01-11
Says Henry CT, ws in His
Weekly Market Letter.
One Coed Feature In Popularity of
High Grade Bonds for
Month.
MARKET OUTLOOK IN DOUBT.

The flrse week OF the new year has
In some respects been a disappolnt-
ment. The investment demand for
stocks usually experienced at this
period has not thus far materialized,
and at present It's prospects for SO
doing are somewhat remote. Prices
for stocks are still very high notwlth-
standing the decline OF the last few
weeks. and IL IS fully recognized that
much of the prosperity that Is likely
TO come to US IN 1909 has been al
ready fully. II not over, discounted.
All the arts OF manipulation have
been rcsorted 10 TO carry prices to a
still higher level but without success
Buyers for Investment cannot be had
at present figures. and there Is but
one conclusion remaining: that ~ the
iaarke. Ter s.ecks must sack lower
level before renewed activity can be
anticipated. This ialp! ession Is stead
fly gaining ground. especially rs the
January investor Is conspicuous by
his absence, and the market Is con-
sequently left In weakened ard
somewhat sensitive condition
rather serious blow was delivered By
the decision OF the United States SUI
preme court in regard TO Consolidated
Gas As a result this stock broke 50
points, thus weakening the hands OF
those who have been the chief sup
port OF the market.
The local monetary outlook. 3 en-,
tirely satisfactory; unless Il be that
rates may again become easy. Funds
are now returning more freely from
the interior and the banks
have gained from treasury OPP
Grafton. the result being that both
call and time money are showing
declining tendency. Indications point
10 easy rates for az least the next two
or three months. Tor general business
Is comparatively quiet. ard the UNI
certainty OF tarlff legislation Is likely
TO put a check on commercial opera
tions until definite action has been
decided upon. There Is little pros
pect that the tarin question will be
settled during the present session OF
congress. Il being well understood
that President-elect. Taft vii call
special session for the purpose OF con-
sidering the tariff after his Inaugural
ton. should the tariff debate be con-
tinued Unexpectedly long Il Is quite
possible that midsummer might ar
rive before uncertainty was relieved.
This would " course prove very
undesirable and protracted period OF
delay. and Il Is hoped that Il Will be
ayertod. Nevertheless. Il Is one OF
the contingencies that must be taken
into consideration.
High Grade Bonds.
One OF the best features Of the sit
uatlon Is the excellent demand for
high grade bonds: there have been
numerous issues OF these turing the
last few months. and approximately
sfo0Oo0@o0 were offered last week
and are being rapidly absorbed by in
vcytors who show a very decided pref
erence of bonds. probably because
their principal would be safer than II
invested In stocks az present figures.
Thus far the bond market does not
such Issues but In view OF the large
sums already authorized and those
which are known 10 he forthcoming
II Is a question whether or not the
supply will not soon prove greater
than the demand II the present rate
II issue continues for any prolonged
period. The necessities of our rail-
roads. however. are imperative. and
this Is their sole means Of successful
~ raising capital. Under existing con-
dltion there Is no doubt that there
will be a large demand for all classes
b OF securities from investors II these
could be had at moderate concessions
from present prices, Confidence IS
steadily rising, and as conditions have
been made much sounder as a result
OF the panic there Will be little din
Guilty In raising the necessary capital
for desirable enterprises. The require
ments TO be met VII be simply those
OF price and quality OF securities
While the gas decision OF the SUI
prcme court was a shock to the mar
ket and displeasing 20 bull interests.
It had a wholesome effect upon public
opinion. The court IN carefully avoid
ing any action that appeared to be
fixing the price OF gas. or even indi-
eating what is a fair return upon the
capital invested, showed a judicious
regard OF the fundamental rights of
property. II also showed an equally
careful regard for the public at large
which gave the corporation itq0 priv
ileges II announced the important
principle that where monopoly existed
good will" was impossible. and took
a position adverse to the payment of
dividends upon over-capitalized fran
chises. FURTHER, 1t was made pain
that II the company should still prove
unable to earn 6 per cent on a reason
abe valuation by the use OF good
methods. then it may apply again to-
the courts for rehearing The
spirit OF justice to all Interests and a.