Evening star., 1915-01-31
Dealers Believe February
Reaction" From "January
q. Rise" Will Be Slight.
USUAL PROFIT TAKING
AND SHORT SALES NOTED
Realization in Bond Investments
Surpasses Expectations-tavorable
Effect of Gold Pool Disarmament.

= NEW YORK. January EFF the
/. stock market is in any way inclined TO
Z permit history to repeat itself. we may
: expect shortly to enter upon the Feb
: ruary reaction" that has always here
, tofore followed the January rise.
]. Since the turn of the new year there
2 has been a protracted upward move
m"nt in the stock lists. during which
the averages have been carried well be-
yond the official minimum established
by the governors of the exchange; so
Z that in future the law of supply and
. demand may be taken as a safer gauge
' of market values than the artificial
: valua ton of a governing board. There
us a strong impression that the Feb
: ruary reaction will not be as pro-
: nounced as in former years, and it is
TO be hoped that the professionals will
not exert their influence too strongly
TO bring this about. II is noted, for in
stance, that during the past week the
usual amount OF profit taking and
short selling has been going on, and
these two elements are always impor-
tant factors in any market depression,
either natural or artificial. The stock
market, meanwhile, has been greatly
stimulated by the improved investment
demand, inasmuch as many who have
been holding off and waiting for better
bargains in the bond market have pur-
chased stocks on the better prospect
that seemed open to them. At the be-
ginning of the upturn Specialties which
are not regarded good leaders were
most prominent, but of late they have
been superseded by standard railroads.
support the latter have received from
investors recently is, perhaps. the most
favorabl feature of the situation. Low
priced rails of the west and southwest
were much assisted by the favorable
turn in Missouri Pacific, which will be
q
banking interests. the Gould interests
retiring from the boards
Bond Market
When We come to the bond market We
find that realization in this department
is actually surprising the most sanguine
expectations With bonds the demand for
investments, both from individuals and
institutions, has been such as to lead to
large expansion in dealings and to a
rise in prices much more substantial than
had been anticipated. The forward
movement in the bond market is par
ticularly interesting. in view of the dis
cussion which has been under way ever
since the outbreak of the war regarding
the effect of war upon the cost of capital
What is now going on in the bond market
does not prove that the argument that
the cost OF capital will rise sharply after
the war is over is wrong, but it certainly
does prove that there are many investors
who are inclined to employ their funds
now rather than to keep them idle against
the day when higher returns might be
had on the investments. Indeed. SO many
are there of this mind that recent weeks
have brought a lessening of the yield
on high grade issues.
The following list of high grade bonds
IS here presented, having passed through
all the trials and upheavals of recent
years. and paid their interest charges
promptly and regularly. They would seem
to be a good investment at the present
time. and any one interested should COM
municate with his own banker, who can
doubtless furnish more complete informa-
ton: Bethlehem Steel first refunding SIS,
N1z; Chesapeake and Ohio convertible
Ar per cent, IA; Chicago and Great West
ern Is, II Chicago, Rhode Island and
Pacific IS, Sc; Denver and Rio Grande
FIRST refunding SIS. 54: D;stillers' secur-
titles first 5's. so Erie general lien AS, 70;
Erie convertible As series A. 63Ia; Erie
As, series h, 65A Inter-
borough Metropolitan Az per cent, IA:
iowa Central refunding AS, As; Kansas
City Southern IS, 80; Missouri, Kansas
and Texas of Texas 5's 81; Missouri
Pacific As, a. Missouri Pacific SIS, 45 :
southern Railway debenture As, o.; |
Western Maryland as, 65 Missouri,
Kansas and Texas second mortgage as.
az, and Missouri. Kansas and Texas first
mortgage As, 81.