The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-01-29

new 10TH, Jan. S6.-Iue event Vi
the week was the sale Of $50 900, 900
New York City bonds at an average
price Of 31OO.904. While the price real
ICED was not entirely up to expecta-
ti0ns. the avidity with which the
bonds were taken made the sale sue
cess. especially considering the free
dom with which this city has been
putting its obligations upon the mar
ket within the last few years. There
is limit to the demand for even such
questionable security rs New York
City bond, which ranks among the
very highest of securities; and this
limit is evidently approaching. The
chief Significance of the bond sale.
however, was as test of the invest
ment situation. Evidently there is
very fair amount of capital seeking
investment. but it insists upon good
returns. During the past two weeks
there has been an excellent demand
for bonds at all the financial centers,
and the preference is plainly in favor
of those which yield the larger re-
turns when the issue also ranks high
| in safety. Four per cent bonds, unless
OF the most unquestionable security.
are not now in demand, proving the
law that when commodity values are
high low interestbearing securities
suffer because their returns are made
quate Many bonds have now declined
to position which yields good re-
turns, and this fact is being fully rec
ognized by discriminating investors.
| ~ l>;l &c,
step in the right direction. 1t is much
more liberal than expected, and should
receive the prompt sanction of both
the American and Canadian legisla-
lures. There is no reason why trade
on the northern border should be
compelled to flow only East and West.
1t should also flow both North and
South, and would thus benefit both
countries. The chief obstacle is the
undue selfishness of certain localities
| and interests on both sides of the line.
| There is no sound reason why New
England should not buy her coal in
the best market, that of Newfound-
land; nor why Canada should not draw
upon our interior coal fields when to
her best advantage. Both countries
would benefit immensely by thus low
eripg the barriers upon trade, which,
it should be remembered, could not ex-
list unless mutually profitable. A
strong argument in favor of the bill is
that it aims to reduce the cost of living
on both sides of the border by enlarg-
ing the free list on foodstuffs and the
necessities of life. There will of
course be great opposition to the pro-
posal, but the discussion will at least
be enlightening and every effort
should be made to secure its adoption.
Little change is observable in the
very easy, owing to the return of funds
from the interior, and the best COM
mercial paper is quoted as low as 3Na
4 per cent. Needless to say the latter
fact is a helpful feature of much po-
tency in the business situation Con-
corning the latter there is q DISPOSE
ton to take q somewhat more hopeful
view. The effect of recent liquidation
has been beneficial and general bust
ness, it is recognized, has been con-
Quoted on such conservative lines for
several months past as to materially
restrain any further depression.
Shelves generally are bare of merchan-
disc. In some departments of indus
try. notably iron and steel, orders have
been held back for SO long period
that there is large accumulation of
business which sooner or later must
be transacted. It is also generally rec
ognized that financial, industrial and
commercial conditions at the East are
much better than for several months.
At the West the situation may be
somewhat spotty, especially where