The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-01-08
WALL STREET GOSSIP.

Authorization of the Issuance of SIS, sOo,-
900 Of new capital stock, by the New York
Edison Company and ss.5oo.000 capital
stock and 6. 200. 900 in bonds by the Astoria
Light, Heat and Power Company, has
been held up by the public service COM
mission.
curities are selling at the opening of the
new year Is considered firm basis from
which TO build up good market for new
securities. New York bankers believe
that large amount of new financing
can be accomplished II corporations are
willing 10 meet the present high rate
demanded by investors for new capital.
That old issues have been well cleaned
up is given as proof OF this.
In this connection the arrangements
that are being made by several railroads
for bond issues that can bear a high rate
OF interest are pointed to as evidence that
these corporations which have the largest
amount Of financing to do are ready to
pay the price demanded for new capital.
Wall Street IL more than usually graft
fed TO note that the money market has
entered upon 4 period in which steady
Improvement in the bank position may be
expected for some time to come as money
terror.
To what extent this accumulation will
be carried this time Is one OF the inter-
esting questions presented to bankers. All
the indications point to an unusual con-
centration OF funds and decidedly easier
money rates for the next few months
This is not alone the case with New
York. but II will probably be the expert
ence of all the important financial centers
90 In, 10 l. srt
ing to note that money in London during
the last day or two has shown an easier
tendency.
Discounts are now down to Ills per
cent, and there is every expectation that
the Bank of England will make an early
reduction In its official rate. which still
stands at per cent Similar action il
looked for from the Bank Of France.
which has maintained its present 4 per
cent rate since October 81, 1919.
n. L. Carpenter & Co.'s activity In
creases prices of securities should ad-
vance. Money is working easier and all
Indications seem to favor an upward
movement In stocks. The action of the
executive committee of Union Pacific is
bullish on that issue. We have been
advising purchasing of this issue for
some time and l believe il Is the cheap
est first-class investment stock on the
list and would buy 1t on any recession.
Hartman & Coin well informed quar-
tiers IL is stated that there has been
distinct Improvement in the demand for
steel since January /. There was room
for Improvement. however, for the condi-
tions in December were distressingly bad.
1t is said that the net earnings were w.
10000 In October, 100000 in November
and only s, 10000 in December. making
total for the quarter of ssS.ooo.o0o or
little better. This. however. was well
above the last quarter of 1911, when the
earnings were a little over S23.coo.oc. or
the first quarter of 1872. when they were
under SlS,00o0oo.
f. and G. Randolph to w. r. Hibbs &
Co-The opening was quiet with prices
fractionally lower than last nights close
and there seemed to be a desire in evil
dence TO take profits. as the rise in the
market has been quite considerable In
the last few weeks. 1t was contended in
some quarters that Union Pacific had
been the leader of the rise, its advance
being based on the coming melon. and.
now that the news was out, there was no
reason to expect any further advance.
Baltimore and Ohio was extremely weak
in London, but failed to decline in this
mari to anything like the same extent
Considerable pressure developed against
New York Central, while Arnalgamated
was heavy on the further decline in the
London metal market.
Heavy profit-taking continued In Union,
forcing its price down l Us from last
nights close, but the stock appeared to
be well taken and offered good resistance
to the heavy protit-taking which went on
In the afternoon the market was quiet
but steady.
Money opened and renewed at per
cent
Extraordinary rise in foreign exchange
4. attracting attention in banking circles.
Demand sterling is now close to parity.
that is 1866. an advance Of about $50
points in about two weeks.