Evening star., 1917-01-14
BIG FALLING OFF
IN STOCK TRADING
MilIion-Do Days on Ex-
change Conspicuous by
Their Absence.
INVESTORS TURN TO BONDS


IS. NEW YORK, january 13-Since the
turn of the year there has been a con
spicuous falling off in the volume of
trading on the stock exchange: mil
lfon-share days have been conspicuous
for their absence. and the apathy OF
the general public toward market
movements has enabled the profess
sionals to take control of the market.
II would be wide OF the mark to
state that this apathy has been due
to the investigation low being held in
Washington relative to the leak" in
the Presidents peace message. which
has been held accountable for the bear
raid on the market few weeks ago.
Wall street regards the whole incident
- the attempt of a few publicity
seekers to obtain cheap notoriety at
the expense and to the embarrass-
ment of government officials.
Waiting on Developments.
The whole tendency of the market
n. this time seems to be that of await
ing Developments. some of which are
expected to have an important bearing
on the business situation. A few weeks
ago IL was the possibility of peace in
Europe which furnished the chief topic
of interest This has been for the time
being disregarded because of the op-
position of the entente nations to the
patching up of truce which would
permit of preparations for a more hor-
rthle conflict in the future.
Furthermore, the cabled report of
slasorate plans for financing the war
-
the )olicy of these nations and created
the problem of the extent of American
participation in the next loan. Ac-
cording to London cables. the financial
plans Of the Treasury Department are
the most ambitious ever attempted by
That agency, and, IL approved. will al
low ample provision for the conduct
OF the war on a larger basis than be-
fore.
Bonds Are in Demand.
One of the effects OF the recent liquida-
tion In the stock market. as we'll as of
the absence OF the public from that
market. has been the transfer of a con-
siderable fund of money from stocks to
the more steady investment of fixed in
tsrest-paying securities This refers
not only 10 domestic issues. but to for
eagn bonds as well. The issues of bel
sold here since the war started now
amount to more than two billion dol
lars, and IL 10 safe to conclude that any
new Issues which offer an attractive in
terest return will ind ready reception
among American investors.
General conditions in the bond mark
ket have been steadily improving, and
investment bankers continue to report
tnefr naotlity to supply all the de-
mands Of Investors. Prices for all is
sues have advanced. which means that
purchasers have been willing to accept
. lower interest return on their money
In consideration of the greater degree
OF safety provided by this form Of in
-vestment. The call for railroad and
municipal bonds 10 particularly keen.
New York State Issue.
4 forthcoming event of much i'm
portance in the bond market is the
marketing of New York states $5s, ,ooo,-
900 bond issue authorised at the cleo
tien last November. All of the bonds
Of the Empire state have been the OBJ
sect Of sharp competitive bidding among
investment bankers and have been very
quickly absorbed in the general mar
,b,: HseS s,s. rspors 70 the sE
gens n. Travis stated he purposes to
ofRer 325.00o.0oo at an early date, pre-
eumabiy during the current month. The
bonds went to banking syndicate at
an all or none" bid. and were quickly
disposed Of to investors and financial
institutions II is understood that at
least two banking syndicates will make
an enort TO secure the entire issue, and
that the bids for smaller amounts will
como from many outside points.
However divergent may be the views
OF prominent bankers and economic
students with regard to international
financial conditions after the war. it
- certain that up to the present time
there has been q wide disparity be-
tween their predictions and actual per-
fogmances tp domestic money markets.
Flurries Are Temporary.
u 10 true that there have been a few
Temporary hurries which carried loan
ing rates to comparatively high figures.
but oonsiderinE the abnormality of the
worlds markets and the enormous
financial operations due to the war, 1t
10 significant that rates for funds have
been at lower basis than at the time
Just prior to August. 1914. Banking
loans in New York have been made
during the past week at 81 per cent
DOR six months on regular mixed COL
lateral and 81 per cent on Industrial
tion In the supply OF loanable funds.
The continued import of British gold
into New York has been an important
factor in determining the trend of
monetary conditions. II Is estimated
that since the FIRST part Of 1916 the
total inflow Of gold from British
sources has been in excess Of se75.-
100000. As this Is the basis for four
20 Ave times that amount of credit, II
has had an important bearing on the
loan situation IN this country. The
logical conclusion Is that the British
treasury IL pursuing a definite policy
20 create a favorable atmosphere for
the distribution OF new credits in this
country. These treasury officials are
sxparts in the art of international
anance. and know how to make the
most Of q situation.