The Washington times., 1912-07-28


proof In q suit against 1t, and the at
tempt TO define an illegal monopoly as
the control Of more than 30 per cent of
the manufacture and sale Of any given
Products came in for much criticism.
Later IN the week, Washington devel-
the passage Of the La Toilette bill, re-
vising the tariff on wool, by the Sem
ate. But the attitude of the Street on
tnls was more favorable than other
Gnnn wise upon the theory that Il revised by
2 feature OF disturbances than has been
feared In the campaign.
The Decline In Consols.
Though without direct effect on the
local market the announcement of
Great Britain's intention to build twen-
ty-one battleships to meet the German
naval program, and the violent break
in consols, which followed, aroused
much interest. The decline in British
consols since 1923 centered attention
again on the worldwide depreciation in
gilt-edged investments and the highly
unsatisfactory condition Of the domestic
market Tor the oid style Z per cent
is Of deeper concern to corporation
managers and bond-bankers, than the
present investment situation. 1t is i'm
possible. manifestly, for corporations TO
go on financing temporarily with short
bond unstable. on anything like the
old interest basis, II has become a seri-
Gus problem with many how they will
be able to finance their needs
A large number of bankers, perhaps
the majority, subscribe to the theory
that the depreciation of bonds is due
primarily to the overproduction OF gold,
and most Of them fear that declines are
likely to proceed further. But they are
theories o. what has brought this con-
dition to pass than with the way We
are to get out of II. What influence do
probation and generally stagnant con-
ditions in high grade bonds. both al
securities, particularly on stocks, is a
perplexlng problem. Usually when
bonds have gotten into such a state. II
has been regarded as sign of credit
pcrienced reaction in turn; but the prep-
ent situation is unlike anything which
this generation has experienced, and II
affords no basis for comparison There
is no evidence of undue strain of credit.
but a slow erosion in bonds continues.
such as might be explained by the slow
workings Of economic forces, as for IN
stance a change in the measure of
values.
Bonds At Attractive Yield.
How this matter will adjust itself, no
one of course can foretell, put one
should Lot lose sight of the fact that
there are always two sides to a propo-
sition and there are certainly two sides
to this one. Thus while 1t has become
increasingly difficult for the old estab-
lished corporations to finance as easily
or as economically as Of old and while
institutions and individual investors
have sustained very heavy losses
through the depreciation of securities
on hand, investors who buy now. have
certain advantages. Thus the changing
worth OF investment capital Is bringing
some very we'll secured new public
utility bonds into the market, which pay
s per cen tor better while the old
established issues, the best securities
we have, can be purchased on very
attractive basis
At some price. the old style bonds
will find purchasers, and the sagging
tendency will, be arrested. This was was
Felix Schuster. president of the Union
Of London and Smiths Bank Ltd. in