Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-08

Though the above comparisons are
made with last years prices, it should
be remembered that the chief pyrotech-
mic gyrations have taken place during
the past two or three months, and the
advances may fairly be taken as rep
resenting the speculative boom. In this
period some of our leading industrials
which. however. have not participated
shown only modest advances. United
States Steel common gained only 8
points, and Amalgamated Copper
points.
There has been another important
reason for the increase Of the specula-
tive tendency, and this is to be found
IN the great amount OF idle money not
only il the banks. but in the hands OF
private investors. Wall street, there
fore, believes that so long as conditions
continue as at present 1t will be I'M
ton that is spreading through the mar
ket- It recognizes, however, that the
present stage is extremely dangerous,
because it is concentrated in a few
specialties with such intensity that
ordinary profits will not be SUFFICIENT to
cause the present prices to remain per-
manent,, and. as usual especially IN
dealing with industrials, rumored prof.
its are probably larger than any pres
ent conditions of the business really
warrant. On the other hand. contin-
uance of conditions in Europe may
easily add increased business at prof1t-
tory has taught that where the spirit OF
speculation is fed by profits it usually
after a while spreads from those spe-
cial securities into a general movement
throughout the market, with the excep-
ton that securities based on equities
are selected to the exclusion OF more
permanent investments. In looking for
ward, therefore, the danger that gen
eral pric-nprovement will not ulti-
mately occur depends upon the extent
of speculative losses due to overspecu-
lation in the present speclaltles, ana
also on unforeseen circumstances which
might prevent the improvement in gen.
eral business throughout the country,
especially as it pertains to the railroads
Of the country.
Bonds Decline on Stock Exchange.
According to the latest accepted prin-
ciples of finance and economies, bond
prices are supposed to advance when
money is plentiful. The reverse has been
true during recent months. but this is
explained by the fact that investors have
shown a decided preference for short
time investments rather than putting
their money into long maturities Thus
IL Is found that the average price of the
twenty-five representative railroad bonds
used for statistical comparisons declined
again during July 1t is now at the low
est level it has reached at the close OF
any month since the reopening of the
SUCK exchange. Inc Qecllne curing the
past month was over half a point, bring
ing the monthly compilations by Dow,
Jones & Co. to 77.205. AS compared with
the average before the effect of the war
felt in the investment market, it is
now off over I points. AS compared with
the last prices at which these twenty-five
representative railroad bonds sold before
the stock exchange closed July 80 a year
ago, the average price is now off points
Only three of the bonds in the list are
han,
These are the Chicago. Burlington and
Quincy collateral joint As due in 1921,
which makes them six-year bond: st.
Louis & San Francisco refunding As and
Chicago & Alton ; 2s.
July Corporate Financing.
Corporate financing in this country
during July amounted to only 100000
00o smaller total tina in any previous
month of the year. This can be ac-
counted for largely by the effect on
interest rates of the new British Az
per cent war loan, which sent a good
many of our bonds back from England.
No large amounts of financing were ar
ranged by American corporations, be-
better terms for their bonds, and meet
with a better demand for them. The
greater part Of the securities matur-
ing during the month had previously
been provided for. and as the maturi-
ties left this year are small, little
financing had to be done for refundinR.
July financing was less than half
that Of June, not a third as much as
for April, and not a fifth Of the Feb
ruary total 1t brought the total
financing for the year to date up to
1855 900. This is s247.500, 900 less
corporate financing than was done in
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