The Washington times., 1911-03-05
NUMEROUS ADVERSE HAPPENINGS
VEX THE NEW YORK STOCK MARKET
Extra With Its Threat of Tariff Disturbances
the Most Effective Bear Much Actual Liquidation of Stock
Gar's Optimistic Trend Favorable Factor
BIZ JOHN GRANT DATER,
cial Representative of the Munsey Publications.

, as to the income field which new railway
issues must bear to prove attractive.
Some light Is thrown on this perhaps,
by the $25,OO0,0 900 st. Paul-Puget Sound
issue, announced today, which will be
offered on about "A per cent basis.
Panama Bonds.
The question of income yield on
strict investment issue becomes more
than usually interesting, at this time in
consequence OF the passing by Congress
Of the Panama canal bond bill which
creates in substance an entirely new
form of Government issue comprising
go, 900, 600 3 per cent bonds without the
circulating privilege. This is the first
occasion in practically fifty years that
bond for which the full faith and credit
of the Government Is pledged has been
placed in a position which renders 1t
unaV ailable as a basis of bank note
circulation, and banking interests are
very much interested over the outcome
OF the offering of the bonds of which
the first installment, it is believed, will
be $4,000, 900.
If 3 per cent Government bond with
out circulation privilege were to be sold
strictly on its merits II is regarded as
highly doubtful If the Panama canal 3
per cents would bring the price of par
in the market, bu: 1t Is generally be-
lieved that small issue of $JO,OOO,0OO of
these bonds will fetch that price, at
least, inasmuch as the bond is exempt
from taxation and is available as secur-
ity~for deposits of public money. Aside
from that it is generally believed that
the Treasury is likely TO enter into some
arrangements with banks to make the
hrst offer successful either by agreeing
to leave the money received for the
bonds on deposit for a while with the
ElhGrFih1nO 1fNar for
demption the outstanding per cents of
the Spanish war loan of 1908 or through
some other plan by means of which the
Panama canal SIS may take the place of
other issues, now amounting to
ID: 900. which are on deposit to secure
public money.
Income Yield and Money.
With subsequent issues the Panama
Canal bonds special arrangements Of
this kind may be more difficult, and in
time, apparently, the country is des-
tined to witness for the first time in
half a century Government bonds sell
ing in a market reasonably free from
the artificial conditions which have boil
stored up these issues and which re-
suited, at last, through the provision
of the relunding act of 1900 in destroy
ing the investment character OF Govern
ment bonds. Whether individuals are
prepared TO purchase bond returning
as low a yield as per cent at a time
when such high-grade bonds as those of
the City of New York are on close to a
~ per cent. basis and when savings
bank bonds can be bought at a price to
return AZ per cent is, of course, a ques-
ton.
The money market is giving WauI
Street no concern at the present time,
and the continued easy rates both at
home and abroad impart a powerful
sustaining influence to the security
market. Despite the numerous unset
Ting features, banking interests do not
look for serious liquidation while mon
ey continues so easy. and the belief pre-
walls that the existing situation makes
for a continuance of a bond demand.
The bank statement today reflected
larger increases in loans and deposits
than were expected. and the surplus re-
serve decreased In both the average and
the actual statements. However, with
a reserve $SS, $4,000 in excess of legal
requirements, as now reported in the
average statement, the Street is not
worrying about money matters. -