The Washington herald., 1915-09-14
BRITISH LOAN IS
TOPIC in STREET
Bethlehem and Crucible Gain.
Railroads Are Neg
lected.
EXPECT BIGGER INTEREST
Traders Talk of Closing Out Other
Lines to Buy Securities Backed
by Allies.

New York. Sept. 13.-Wan street ex
pressed hope today of an amicable solu
tion of the German-American situation
by a higher range of prices for stocks
several high records being made. With
the exception of Erie shares. the rail.
showed little vitality and continued In the
rut in which they have been for months.
The market opened strong, with Cruel
Bile Steel and Bethlehem Steel in from
with large overnight gains. General No
tors also showed large gain over the
holiday.
Brokers reported a good volume of buy.
Ing orders, and as the session progressed
prices advanced until the last hour, when
there was a slight recession on profit TAX
ing. The movement upward, however
was again resumed in the last fifteen
minutes, SO that the close was strong and
around the best.
British Loan Attractive.
The financial district is absorbed in the
new British loan, which, according to
bankers, probably will run from $500, ,000,
900 to $1,000, 900. Investment bankers
express the belief that the fotation will
be a distinct success owing to the pie
thora of idle money In the banks. Some
Investment bankers said today that they
contemplated borrowing money at 2 per
cent anu IeluNGSllIS II III INC new oEll-
ish loan, which they believe will yield at
least per cent. Large business concerns
together with merchants with idle funds,
are expected to set them to work in the
new loan, as there is a certainty that
there will be a broad and ready market
for the securities.
Before the Anglo-French commission
arrived in this country the general opin-
ion was that the loan would cost the for
eigners at least per cent, but since their
arrival and declaration that they could
send US gold II Americans wanted 1t, the
rate expected to be demanded has dropped
! per cent.
Fries Have Good Day.
Quite a few people in the financial dis
trict. however. believe that the concen-
tration of such a large amount of money.
notwithstanding that it will remain in
this country. will cause a tightening up
Of the money market, with an apprecia-
tion in rates.
Consummation of the loan Is expected
to have a depressing effect on the market
for American railway bonds, according to
investment bankers. who believe that
many investors owning high-grade gail
road bonds yielding around 41-2 per cent
will sell and reinvest the proceeds in
security backed by the allies. For this
reason. together with steady liquidation
by foreigners. no buoyancy is expected in
the bond market for some time to come.
Conclusion OF the large loan, however
10 expected to have a favorable influence
on stocks. as 1t is calculated to remedy
the foreign exchange situation. which has
induced foreign selling OF stocks. The
loan also will supply the allies with
funds with which to make additional pur-
chases Of American products. which will
be mirrored in more tonnage of the rail-
roads.
Bethlehem Steel sold at 1886. the highest
price In its history and an advance Of
twenty three points for the day. Brokers
say the tenacity with which odd-lot in
vestors who purchased a few shares of
the stock under par are holding their
shares is surprising, in view of the large
paper profits.
The Eries were the bright spots on the
dark railroad horizon, the common rising
half point and the first and second pre-
ferred about two and a half points each.
Accumulation of these shares has been
going on for several weeks, and the in
siders are very optimistic regarding its
future.