The Washington times., 1912-04-28
WALL STREET SECURITIES FIRMER
WITH GENERAL BROADENING OF LIST
the Gloom Dsaste-Bg Wr
Practical Settlement Labor Troubles and Threaany Leading
Operators Not Participating Advancing Movement.
BY JOHN GRANT DATER.
nj Representa- tive the Munsey Publications.

the rights of way from melting snow
and ice adding materially to operating
cost
One feature of the financial market
which is attracting increasing attention
is the sharp contrast between the spec
ulative and the investment division.
While no fewer than twelve stocks sold
during the week at the highest point in
their history, and while twenty-nine
distinct issues in all touched the highest
price in a year, bonds languished, and,
as a rule, the higher grade securities
sagged away. With money ruling easy,
as 1t is, there seems no other adequate
explanation OF the situation in the bond
market than that a slow and steady
liquidation Is In progress, and this seems
traceable to general demand for a
higher income yield than the general
range of strict investment bonds now
give.
The diverting movements in stocks do
not adequately explain the letharglc
conditions i'm bonds, for many OF the
stocks. which have advanced SO sharply,
are non-dividend payers, and do not In
the slightest appeal TO. investors, while
others, like Reading and New York Cen
trail, are selling at prices where they re-
turn even less on the money than the
bonds of the same properties. The ten
dency in bonds Is 30 geperal and Is so
clearly defined as to lead TO the con-
economic cause. such as a higher value
of investment capital, due, perhaps, to
depreciation of, or an overproducuon
OF, gold. This might account for the
general phenomenon of declining bond
prices which is not peculiar to America
alone, but which Is typical also of the
Paris and London markets.
Easier Trend of Money.
Without question the tendency of high
grade investments is proving a serious
embarrassment to many railway corpo-
rations which stand In great need OF
additional capital. which they find in
creasingly difficult to procure, for the
investing public turns a cold shoulder
on bonds Of the old familiar type, and
It seems to be surfeited with short term
notes, which served as stOp-gap for
while, but which are not bought with
the same avidity now, chiefly in conse-
quence of the enormous quantity afioat
in the market. But an interesting fea-
ture concerning the apathy and heavy
tone of investment issues deals with the
future of the speculative market itself
and involves determination of the
question OF whether an advance in poor
or speculative interests Is warranted
and whether one can be healthy when
vastly better Issues of the some prop
erty languish at very nearly the lowest
prices in their entire history. aside from
a period of acute panic.
The dullness of the bond division was
emphasized by the distinctly easier
trend of the money market. Usually,
of course. when bonds of the best char
acter return more than the going rate
for time money bond dealers and bank
ers utilize some of their surplus capital
in Investments, for. as they put II, the
bonds carry themselves" and they
give a profit. Four. Ave and six months
money declined 4 per cent during the
week from a range OF 312 to 3% per cent
TO 34 to 31a per cent. AS many very
high grade bonds are selling on a basis
to net "a to AZ per cent. one would
naturally look for some bankers buying
and firmer tendency in bonds, but
such is not the case and, as indicated
by what has gone before, both money
rates and bonds eased together, which
is strongly Contirmatory of the theory
of slow liquidation in investments. The
statement of the actual conditions of
the banks today showed but inconsider-
able changes and attracted no attention.