Bisbee daily review., 1911-02-02
TEL-L. DIRECTION
 IF WIND

of 100,904 While the price realized was not entirely up to expectations, the avidity with which the bonds were taken made the sale a success, especially considering the freedom with which this city has beer putting it's obligations upon the market with in the last few years. There is a limit 10 the demand for even such unques- tionable securiIy as a New York City bond, whiea Talks among the 1e-v hlghese or securities; and this limit is evidently spproaching. The es,icf significance of the bond sale, however, was as a test of the investment sitaa- tscn. Eyid enlly ihere is very fair amount O capital seeking investment, hut it Insists upGl good ret1rls. During the past two weeks there has been an excellent demand for bonds al all the financial center, and the preference is plainly in favor of those which yield the larger returns when the issue also ranks high ir safety
 Four per cent bonds. unless of the most unquesuonable security, are not now in demand, proving the law that when commodity values are high low interest bearing securities suffer be- cause their returns are inadequate. Many bonds have now declined to a
 position which yields good returns. and this fact is being fully recognized by discriminating investors.
 Presideit Taft's reciprocity bill is a step in the right direction. It is much
 more liberal than expected. and should receive the prompt sanction of both the American and Canadian and legislatures. There is no reason why trade OF the northern border should be compelled to flow only East and West. It should also flow both North and South. and would thus benefit both countries. The chief obstacle is the Hudue selishness of certain To. caiities and interests on both sides of the line. There is TO sound reason
 why New England should not buy her coal in the best market. that of Newfoundland; nor why Canada should not draw upon our interior coal fields when to her best advanr-
 age. Boga countries would benefit immensely by thus lowering the bar riers upon trade, which, it should be remembered, could not exist unless mutually profitable. 4 strong argu- ment in favor of the bill is that it aims to reduce the cost of living on both sides of the border by enIargjng 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 ! he enlightening and every effort should be made 10 secure its adoption.
 Litue cnange is observable in the local money market Rates eontinuo i very easy. owing to the return ol funds from the interior and the best commercial paper is quoted as low as SS-i and per cent. Needless tc say the latter fact is a helpfuI feature of much potency n the busi. ness situation. Concerning the latter there IS disposition to take a some what more hopeful view. The effect of recent liquidation has been bene | iieial and general business it is rec ognized, has beer conducted on sueh conserbative lines for several months past as to materially restrain an, further depression. Shelves generally
 are bare of merchandise. In some de
 partments of industry, notably iror and steel, orders have been held back Tor so long a period that there is a ! large accumulation of business which sooner or later must be transacted
 It IS also generally recognized that
 hnanciaf industrial and comm,er. cial conditions at the East are much 1 better than for serveraI months At the vest the situation may be some what spotsy, especially where credit has been strained through over specu lation in land and irrigation projects
 In that portion of the country there
 has been a moderate reaction. ans
 business there, too, has been con lducted on strictly conservative lines all of which will certainly prove bene ] VI 1CAhC tAAlit lD come ec Sf
 money rates are likely to prevail in
 New York The reduction in the Banl
 Of England rate to per cent, how
 ever, was favorable factor, showing
 a stronger position at that center
 Europe has been a fair buyer of oui
 boEdt since January 1. and is repused
 to have taken about s1O.O00,0 ,00O of tho
 New York City issue. The effect o
 these financial transactions has zeei
 to increase the supply of fnancia
 bills and slightly depress foreign ex
 change. Few commercial bills. how
 ever. are offering. this being the sea
 son when produce exports are rela
 lively light. The charged tendencies
 of our foreign trade are helpful. an,