The Washington herald., 1911-01-16

All this has induced. and doubtless will
continue to induce, buying OF investment
securities, which if 1t follows the ordinary
course will lead to a better stock market
later on. AS concern the success or the
city:s new bond issue, it must be said
that it is the belief of our largest bank
ers that the issue will be considerably
oversubscribed. Quotations for the out
standing New York City ~ per cent
bonds are not high. but 1t is to be remeIn-
bered that these bonds can be retired
after twenty years of life and are not
therefore thought exceedingly desirable
The new issue will be a straightout fifty
year bond, and there is every indication
that outside of bank and bond house
subscriptions there will be a large pri-
vate demand for the issue by individual
investors.
Capital for "Bears."
The bear party in Wall street en-
deavored to make capital last week out
Of the fact that the new issue did not
bear interest at AZ per cent, rate which
it was said would have positively insured
the sale. The truth is. as every sensible
person knows that the issuance of AZ
per cent city bond would have been at
tended with disastrous consequences, even
if il had sold at a good premium With
municipal bonds as a first lien upon the
city's real estate commanding AZ per
cent the rate for private mortgages
would probably advance Ia 5l2 per cent
and the almost necessary tendency of rail-
way per cent bonds would be to fall
below par There is no such demand for
capital in the country and no such in
adequacy OF the supply thereof as to
properly lead to the payment of such IN
tercst rates. and the result of the new
cit nffariny iS tilalv attest the
fact
1t is Yet too early to form any idea
about the condition of the crops, but
such State reports as to winter wheat rs
have been issued declare that wheat has
passed the winter thus far in good
shape Marvin Hughitt. whom nobody
will deny to be a conservative observer,
authorized on Friday an optimistic news
paper interview upon general agricultural
anG railway conditions. and it is under
stood that President Earling. of the St
Paul, who has hitherto been disposed to
be rather peSSimistic about affairs. has
been telling his friends in private that
il looks as If matters were coming around
ali right. As regards the shutting down
of tannerieS. cotton mills and the like,
this must be looked for as an applica-
ton of natural and effective remedies for
state of oVerproducton in various
trades. and if the curtallment of produ.-
ton thus ordered should be extended to
more industries particularly that of cop
per mining. at the present time, it would
be a good thing.
II is to be noted with pleasure that the
railroads and the steel manufacturers
have come TO Il practical agreement on
the long-diScuSSed matter of the price of
steel rails. the steel makers agreeing to
roll a rather better rail than formerly
at the old price. As time goes on, il is
becoming decidedly. less certain that
there is going to he. after all. any great
further reduction in steel prices. prin-
cipally because great reduction has al
ready occurred. Ii will probably be
found when the entire present phase Of
the iron and steel situation has berume
IA matter of history that consumers of
steel who placed orders at the existing
level OF prices. and did not wait Io-
time when distinct upward movement
in the trade was again under way did
what was for them a wise and profitable
thing