The Washington times., 1911-06-25
STREET WELCOMES MERGER RULING
AS ONE BRIGHT HAPPENING OF WEEK
Relief From Prevailing Depression During Two Hours Saturdays Session
Density of the Dizziness Therefor
TusD Still Effective
III JOHN GRANT DATE1.
the Munsey

pears to be in the nature of'betterment.
This is admittedly slight at the present
time, but that is to be expected in view
of the seasonal uncertainty concerning
the crops. Banking interests. practically
without exception, are looking for a
very decided improvement as soon as q
definite line can be secured on the har-
vest prospects. Naturally the bank Of
hcers are basing their opinions largely
upon the low stocks of merchandise on
hand and the large supplies of available
credit. An unmistakable Improvement
is reported In Iron and steel, as was
forcshadowed by the price revision Of
q few weeks ago. 1t Is now stated that
the Steel Corporation Is operating at 90
per cent of its capacity, and improve
rally gives encouragement that I'M
provement will extend to other lines.
Panama Canal Bonds.
There has been, perhaps, some slight
modification of opinion on the part of
Wall Street concerning the sale by the
Government of the $50,OOO,OOO Panama
canal per cents. due to the fact that the
bulk OF the bonds will go to banks, trust
companies. and banking firms, and that
the individual investor has not appeared
as q very heavy purchaser. The argu-
ments that were made as to the stimu-
lating influence OF the sale had all been
predicted upon a belief that the public
would snap Up the Panama bonds IN the
same manner that 1t did the Spanish
war 3's in 1895 At that time the small
investor crowded the banker completely
cut of a participation in the loan. and
the issue went like hot cakes through
out the country.
+ In the present instance the incentive
Of unusual patriotism was lacking, so
that comparison with the previous "a
per cent loan is not fair to the new
bond. Certainly an issue bearing so
low a rate OF interest as 3 per cent, and
denied the circulation privilege enjoyed
by other United States Government Is
sues, which Is subscribed fully three
times over at an average price Of 1921.
Is not a failure in any sense Of the
word: but Wall Street has professed
disappointment. This is due. in part,
to the failure of the issue to stimulate
the general bond market. and another
reason which I have not seen men
toned is the fact that very many bond
dealers, thinking the bonds at lS on
the curb were very high, had sold the
contracts short, expecting to cover
through low subscription. The failure
Of several brokers to accomplish this
accounted for much of the activity OF
the new bonds on the curb.
Investments and Money.
The little lull in general investment
bonds noted a week ago continues
Bond and investment houses attribute
this chiefly to the large volume of re.
cent offerings which has supplied the
present investment demand, and as a
further contributory influence they cite
the reluctance Of some investors tc
purchase bonds in consequence of the
recent large sales OF notes at very at
tractive interest rates. In some quar-
tiers It Is held that the reinvestment
market for July has been injured by the
extensive sales of notes giving a larger
income yield than bonds. However
this lull is regarded as but temporary
for, with money ruling as easy as al
present, bankers are looking confidently
to a revival in bonds. as soon as the
present spell Of slight indigestion passes
away
No change was noted in the money
market of the week. Saturdays banh
statement was again rendered impos-
sible of comparison in consequence OF
the addition of two new trust compa,
nies to the Clearing House Association
With the surplus reserve standing al
| SS6. .975,5 500 above requirements, however
no one Is concerning himself with the
money market, and easy rates seem as
sured for the balance of the year.