The Washington times., 1912-09-22
IN STOCK MARKET
RESULT OF DRIVE AGAINST SHORTS
Prosperity by asts Finally
Street Bull Sde-Nuch Importance Minor
God-Gossip of Street. .
ny JOHN GRANT DATER
Financial

ingly hazardous in direct proportion to
the progress 1t makes 1t must be ad-
mitted that aside from the meagerness
Of banking reserves there are many
great sustaining elements in the situa-
ton, arising out of the expansion OF
general industry, which Is directly trace
able to the brilliant harvests. These
features go far in neutralizing the dis
turbances Of the political campaign. and
should have the natural tendency Of
checking liquidation. Though the gen.
eral public may not feel disposed to
purchase stocks on margins. they are
not likely to close out their holdings in
the face of business Improvement.
Any reference to the developments Of
the week, bearing upon general indus
try, would be but a repetition OF the
story told so often in this column of
late. Of sustained improvement in
virtually every line of industry. In
only overtaken production, but in some
cases has outstrtpped 1t. Assuredly so
far as business Is concerned no single
fear OF disturbance arising out of the
Presidential contest, wased along the
lied. Whether this will continue to the
end OF the campaign Is, of course, an
other question. 1t would be singular.
indeed, II the contest which Is increas-
wholly on tarif revision and trust
legislation should pass away, without its
traditional scare, but II so, the country
assuredly will have its abundant crops
to thank for the immunity.
Improvement in Bonds.
Taken all in all, the best feature of
the week was not found In the advance
OF stock prices at all. hut in the i'm
provement In listed bonds. For months
the investment division of the market
has been in a state of fiux. so far as
the old familiar type of railroad bonds
was concerned, and investment houses,
except such as have been making a
specially OF public utility and indus
trial Issues, have been among the
gloomiest men in the financial district.
This week witnessed a broader inquiry
from investing institutions than has
been seen for a long time. Several large
blocks of bonds of relatively recent
could be obtained, were placed quietly
by the underwriters with distributing
houses and banks. and prices showed a
distinctly firmer tone.
That such was likely to be the case
was pointed out in this column some
weeks ago in directing attention to the
great attractiveness Of the bond mar
ket for a new investment, for prices
Of the highest grade issues. which are
legal for savings banks and trust funds,
are substantially upon AZ per cent in
come ba sis. or the lowest price in years.
1t is quite true that an effort has been
made to belittle rhe Improvement in
high grade securities by associating
the new institution buying, with the
possible recourse by the country to a
real test Of the eAldrich-Vreeland emer-
gency currency bill or with the Govern
ment relief measures, such as deposit
ing public money in the banks. which,
OF course must be secured by bonds OF
savings bank standard.
Monetary Relief Measures.
1t Is quite true also that the issues
which developed strength We're mainly
bonds of the character which. In case
of emergency. would be available as
security either for the variety of cur
rency contemplated under the Aldrich-