The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-12-11
FINANCIAL NEWS
AND COMMENT
Chicago and Northwestern Sells
Long Time ) Per Cent.
Bonds.
COTTON CROP IS A RECORD

About as significant a financial devel-
opment as any yesterday was the pur-
chase by bankers OF siO.OoO.oUD of gen
cral per cent. bonds OF the Chicago and
Northwestern Railroad having about Sow
enty years to run. one feature OF special
interest IN relation to this piece OF finance
ing was the inter, st rate fixed for q COM
pauy of good credit. Previous offerings
from the same mortgage of the road have
borne 3ia and per cent. interest. seine
$4,000. 900 of tho per cents. having been
sold last May. Indications were that tho
bankers would put out the new issue ON
a basis of yield around "a per cent.
The suggestion here is. of course that
IN order to do long time financing cor
pordtions must raise their bid for cap-
tai, but it Is also sugg, sted that the ad-
vance is not SO eNcruciating as has been
implied in recent expressions of appre.
hcnsion about the effect OF the war on
iutert st rates. Moreover. the most i'm
purtant Implication OF tho transaction Is
that In the judgment OF bankers invest
mcnt conditions denote the existence Of a
market favorable to corporate financing
With something else than short term
notes.
The aspects Of the securities market
l,toly are reelected IN this undertaking,
hut il is also manifest that the money
market is encouraging financial enter
prise aid IN all probability tho Chicago
and Northwestern operation is but "a pre-
lude To- others. Wall street has been hear
ing for several days that negotiations
were on for some railroad security fio-
tations.
ON the eve OF the morc complete re-
sumption Of open market trading In Sc
curties dealings both IN bonds and stocks
again evlnced inclinatons to await the
disclosures Of the fresh experiment Both
iu bonds and in shares price changes were
irregular. but the undertone WAS firm
and there was nothing to show that sell
ing orders were being neld In allegiance.
Floor trading was resumed on the Bos-
ton Stock Exchange without any unfavor-
abb disclosures.
There might have been a more obvious
response to the British naval victory.
Its effect should be TO make marine in
suranCc rates easier again and relax
ocean freight rates. and thus conduce
to a frecr movement of shipping. In
no financial quarter though, was there
any manifestation Of its Influence. Ster-
ling exchange was steady and a little
higher in price most or tile day. Marks
sold off slightly.
There was no uuotahle change in the
domestic money market. but satisfaction
was expressed in btnkiug circles over
the calliugs of the first meeting Of the
Federal Reserve Advisory Council Tor
next Tuesday. Judging from some OF the
accounts which have been coming from
| Washington lately about the difference.
Of opinion in the Federal Reserve Board,
| II is time that body had the benefit OF
| the practical opinion which the advisory
council can supply.
| Announcement ~ the United States
| steel Corporations tonnag" figures was
| one OF the interesting news itens of the
Id,v The November shriukagc OF 1866
| tons was less than half the october de
| cline and fully as much less than tho drop
which had been looked for. II was no', how
| ever, the consequences OF increased buy
| ing so much as the effect OF n falling
rate Of mill production.
| The Government cotton crop estimate
! had some striking bearings ON the tangled
political and business situation which
! has been created by the distress OF the
Southern cotton grower. Tho Govern
meut figures. placing the years yield
! of cotton at only -. 900 bales lesa than
10000 900 bales exclusive OF linters.
make the crop the largest on record, ex-
coeding the previous record OF 1911 by
more than $4,000 bales.
! 1t j. not only tho war which has hit
the cotton market. Prices would have
uuuuostiouahly gone lower on account
~ the size OF the crop than they did
| three years ago. Wen the staple sold
down around ST. cents On the pub
! LEGATION of the Government estimate the
cotton market broke sharply and did
not rally. closing from 10 10 II points
down for the day