Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-03-07
Big Equipment Orders
From the Railroads
And Plans for Improvements
Help Restore Confidence.
Biz Bond Issue DiscIoses Interest.
Ing Facts About Capital.

New York, March 6.-The notable
feature in the financial markets of last
week was the large Number of new
bond Issues sold to the great banking
houses and by them offered for public
subscription. This development was
responsible, in various ways, for many
results. The active and higher stock
market was regarded as responsive. in
part, to the good effects expected to
flow from this enlistment of new capt.
tai, but also as being probably effected
by the fostering measures of the pow
erful banking houses interested to
prove the market for their new offer
ings
Reports of large orders for new
equipment from the railroads and de-
tails Of extensive designs for improve
ment contained in annual reports of
official statements of those corpora
lions illustrated this influence from
the one side. Effective consumptive
demand for commodities is insured by
the expenditure of the resources thus
supplied. Confidence was thus revived
in the maintenance of industrial activ-
jty. The consequence was a subsistence
Of fears of n trade recession.
1t is subject of comment that these
new bond issues are sold at prices that
show the necessity for attractive terms
i'm order to enlist new capital. The
Weld in highly secured bond issues is
still much higher than the interest rate
on time loans. Special efforts are made
10 secure foreign subscriptions for
these new bonds and here again a low
subscription price is necessary Incl
dent TO success.
The sustained volume of merchandise
imports is not yet balanced by
any expansion Of exports and foreign
buying of our securities seems to be the
only alternative to SUBSTANTIAL outflow
Of gold from New York. The coming
issue of New York City bonds may
have to revert to q Az per cent inter-
est rate compared with the four per
cent. rate for the latest flotations. A
relation is implied between this invest
iment situation and the high prices
Of commodities, which goes to corrob0-
rate the influence of expanded money
supplies on the existing condition. A
rampant speculation in shares of rub
Der companies in London and a grow
ing demand for money in Berlin
through the needs of trade revival are
factors in the money position.
Speculative markets are keeping
close eye on news of the crops. Re-
ports persist of large winter damage
to wheat in the Southwest, but these
are accepted with reserve. The esti
mates of the large unmarketed surplus
Of last years crop is modifying fac
tor. Reports of Improvement in the
steel trade are supplemented by favor
able copper statistics. The decrease in
the March visible supply of copper in
Euroe the first in many months. was
given special significance by reason of
the large exports that have gone for
ward from this country in the same
period. Demand for copper has heen
stimulated amongst consumers. Cur
tailmcnt amongst cotton mills was
general by reason of the higher price
Of cotton. Labor troubles We're kept
i'm view by the Philadelphia strike and
by the Baltimore x Ohio dispute. The
knowledge of other disputes pressing
for settlement along similar lines gay"
the subject special interest.