The Washington times., 1912-06-09
ACTIVITY IN WALL STREET OPERATIONS
CONFINED LARGELY TO SPECIAL ISSUES
Trading Generally Favorable Nature Advancing Pce-Rway
Shares Inactive Which Has Aroused Suspicion
Brokers-Condiions Peculia-News Comment
BY JOHN GRANT DATER,
csI Financial Representative Munsey Publication.

Publications.
I lively little Interference from the conf
Ing Presidential campaign; third. a very
positive belief that the whole country
VIII see sustained Improvement In gen.
eeral trade after the November elections
| III harvests are satisfactory"
| Though Wall Street is deeply con-
cerned In political developments, and Is
watching with increasing interest the
! progress OF affairs at Chicago, between
progress OF the campaign certainly had
| no apparent effect on the speculative
market. Concerning the issues between
/ tinues as previously outlined I'm this
column. with an increasing number of
prominent men proclaiming their belief
mat Mr.. Roosevelt's nomination would
prove highly beneficial to general in
dustry and to securities. But Wall
street is getting into frame OF mind
where it believes or processes to believe
mat the country Is In for industrial
recovery, no matter who is elected II
crops turn out right.
Changing Conditions In Bonds.
| The bond division was dull and gen.
orally uncertain In tendency, but ac-
tually some of the most important de-
Velopments of the week, in their bear
Ing upon the general investment situa-
u1n' originated in that department
These were in connection with the re-
suit of an Offering by the State OF New
York of 1880, 900 4 per cent bonds. and
the discussions as to the proposed
financing OF that portion of the new
subway construction. undertaken by the
Brooklyn Rapid Transit Company, and
calnng FOR upwards OF s10o.oOO,OOO,
the subsidiary companies secured nv
collateral and guaranteed by the Brook
lyn RAPID Transit Company. Although
no definite announcement was made of
This latter fiotation, 1t Is well under
stood that the plan for temporary
financing OF this improvement through
notes has been virtually agreed upon.
49,, Nothing speaks more eloquently OF
the changed conditions in the invest
ment market than the fact that two out
or the three classes OF State bonds
offered fell short of full subscription,
ana although the other class. a straight
nlty-year bond was oversubscribed, the
price averaged but 10o.16. decline of
more than 31s Joints, from the price
received for similar bonds less than
year ago. There is no blinking this situ-
ation, Tor there Is no better bond in
the country than New York State
issue, backed by more than ten billions
or taxable property, but II Is quite clear
that there Is tremendous glut in bonds
OF the highest character for savings
banks and trust estates which are limit
ed bv law to such securities, scarcely
appeared among the bidders. The same
feature explains the scheme for financ-
ing great public improvement like the
New York subways, through tenn
porary loan. 1t is resorted to because
the old time bonds are unpopular and
investors are demanding higher inter-
to pay.
A Foreign Honey Market Strain.
Much the same condition OF conjes-
ton in the investment market is re-
ported from London, Paris and Berlin,
and 1t Is attributed abroad to the huge
capital issues of recent years. Euro
pean advices are to tho effect that Lon
don underwriters of late have been
compelled to take from 80 to 80
per cent of their new issues, and the
situation is the same In Berlin with the
added unpleasantness that the Berlin
money market Is in a condition border
ing upon acute strain In fact the ten
sion developed to such an extent dur
ing the week that Germany iuuidatel
heavily both in London and New York,
forcing British consols down to 76k, n
new low record for the present period.
The reactionary tendency of the New
York market both on Friday and Sat
urday had its origin entirely in foreign
settings and this caused some slight
uneasiness in foreign banking circles
bankers are at
present heavy borrowers In this mar.
ket, the slightly firmer tendency for
time money, which developed during the
interval. was attributed more to the
preparations for the large impending
local borrowing, associated with sub
way construction and the like than with
the tension in the Berlin market The
progress with the money trust investi-
cation did not appear to be a factor
in the local money market but the con-
struction placed on the action of the
Clearing House Committee In closing
banks during the panic of 1907 by the
council of the investigators, is little TO
the liking of bank officers who feel that
they have been misrepresented. The
bank statement, that is the stateme-t
Of actual conditions, was practically
valueless for purposes of comparison
in consequence OF the fact that 1t in
Cluded the figures of the knickerbocker
Trust Company. which, through its
combining with the Columbia Trust
Company. reported to the Clearing
House for the first time. The great In
crea ses in cash holdings, loans. depos-
its and surplus reserve are due chiefly
TO this cause.