The Washington times., 1910-06-26
BETTER DEMAND FOR BOND ISSUES
IS ONE ENCOURAGING FEATURE
Bish Largely Manufactured Bulls PsWikesham Rubs
in Wounds-Short Not Easily Covering
The Rate Making Outlook.
espseI.l En.neaI RspEs.sn.a,s Of an.ey raseatlen.

(specll
NEW YORK, June 26.-Standing out
prominently. from among the develop
cessful bond sale, that of so, 500 600 New
York Central ~ per cent equipment
trust obligations offered to investors on
basis netting somewhat over as per
cent These bonds were taken In short
order, many Of them going abroad, and
an excellent demand was reported also
fer the S25,00oOO0 for the san Francisco
terminal mortgage per cent gold
I bonds of the Southern Pacific Company,
70 which reference was made last week.
! This issue, offered by an international
banking syndicate at SO, or on a rs per
/ cent basis, found ready market, the
larger proportion going to Europe
These incidents were regarded as highly
encouraging because they indicate that
Europe is not taking as gloomy view
] of the situation as we are ourselves,
and partly because they disclose the
/ fact that, despite some recent disturb
ling developments. railway corporations
can find a market for bonds, and thus
] secure the funds they need if prices are
made attractive.
] It is hoped that these transactions
may result I'm stimulating the general
/ bond market somewhat, In connection
with the July disbursements, which are
estimated at about S2OU.UgO, 600. Early IN
/ the week a better tendency was noted
in the investment division, and bond
dealers thought il betokened the
awakening Of the reinvestment demand;
but with the late unsettlement Of the
stock market bond sales again fell
away. Total dealings in bonds on the
exchange this week represented a par
value Of $aO9s,O0O. against S23,52O,0OO in
ItLe corresponding week last year. AT
the prevailing low level Of bonds. with
money working easier as a result Of
Ilessened commercial activity, II would
seem as though discriminating pur-
chases Of bonds. particularly those Of
short maturitles, might be made 10 adj
vantage.
The Autumn Money Market.
The problem of the autumn money
I .arket is, Of course, undetermined; but
in that direction very many things are
working toward a reimbursement West
ern banks are curtailirg their discount
lines TO local borrowers, and are offer
ling commercial paper for rediscount II
New York in increasing volume. The
loan expansion shown in the bank
statement of the week. amounting 70
Isl. e92. 800 in the statement built up on
the average system, and TO $l4.6f4.ioo IL
1.-The statement Of actual condition, Is the
direct result Of these purchases OF
lpaper offered from the West and South
The marked ease In London discounts
lis regarded as highly favorable 20 TINS
market. for in thc case Of an autumn
soueeze II may facilitate gold Imports
I'm fact. the tendency Of sterling eN'
change is already in that direction
| What Wall Street Witnessed IN IN
early laws of the week was an effor
unon the part Of an important elemen
an1ong the professional traders L
change market sentiment The cam
Ipaign was yerye we'll planned. and al IN
outset gave promise Of fair mcasur
of success. With the uDbiddinE OF price
on Monday a feeling Of checrfulnes7
which has long been absent from oroA
erage offices. peTvaded the Street, an
very many operators. by no means e.
tbusiastlc over the market for the 'lont
mill" subscribed 10 the theory that
with certain disturbing factors relegatet
to the far future, the present technica
position was favorable to a fairly sub
Stantial price recovery.
| Unouestionably the improvement
which was wen under way on Monday
and which showed vitality on some 9th
er occasions during the week. Woul
have carried much further than II al
but for the wholly unexpected develop
| ment of the -'crcn scare the hrst OF tn
season affecting spring wheat and corn
II vas quite iiSheaTtening 10 the trad
ers, who had covered their short con
tracts, and had embarked IN the cam
Ipaign for higher prices. 70 find them
| selves confronted with a new disturb
ance- For a time they struggled againS
the crop damage reports. but the yer.
sharp recoVerieS. and the extensive ad
/ vances In wheat and corn. at last force
the conclusion upon them that crops Ia
Sustained some injury from the IN
usually high temperature in MinncsOt
and the Dakotss. and stock prices j
the end yielded as wheat and corn ad
| vanced.
The Crop Scare.
It is, of course. entirely too early {
determine to what extent spring whea
and corn has been injured by the Ion
continued drought and the tOrrid wealth
er reported throughout a wide are