Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-10-28
IIlE SIREEI
q RISE lIINTED
kDOUT EXCHANGE
- Brokers Expect Soaring
Prices Soon-Peace Still
Predicted

Preeident Wilson's appeal, which was
- the tongue Of almost every one
Uurjng the half session saturday, did
,X0< 9eem to have the least effect on the
gock market. Prices ruled strong till
the close. The subject. however, seemed
~taboo" In the financial district. None
whose opinions were asked would ven
lttrp an expression, except one, who said
4 would be a boomerang. The only
z ooncral expressions heard were that 1t
Was q local and not really national
lNeNe at the present time. whatever II
1p1oy. develop later.
In the Street the early prospects of
psace were discussed pro and con, with
5 strong sentiment In favor OF the prob
ability of surrender on the part of Tur-
hay and Austro-H Hungary in few days.
leaving no alternative for Germany
Brokers anticipated some important hap
'ponIngs before the market opens this
morning. which might stampede the mar
ket and one banker went so far as to
say that the recent action of tire money
pool committee in New York was more
IN anticipation Of what might happen to
send prices OF securities soaring any OF
these days, rather than what had al
ready happened.
There are rumors of the cancellation
OF contracts by the Government being
circulated in the financial district. but
nothing very definite could be ascer-
tanned on this subject. although the ru-
mcrs persist.
Bankers and brokers' anticipate con-
tinuation OF the present market strength
for some time, unless interfered with by
further action by the money committee.
y Investment houses report a fairly good
business. 1t is said that several new
issues, short term with high yield and
very attractive TO investors. are waiting
to be launched within the next few days.
These. of course, have all been passed
upon by the capital issues committee as
not being incompatible with the needs
Of the Government.
The same old rumor about new financ-
ing by the Pennsylvania Railroad Com
pany is afioat again. Inquiry from a
well-known flnancier who is close to the
Pennsylvania authorities said he had
heard the rumor and. as on previous
occasions. had traced it back to no
where"
$ .'Of course when l heard It," he said.
II did not credit it, because every prece-
dent connected with Pennsylvania
financing was against it. In all my
years Of experience and study of this
subject 1 have found that the Penn |
sylvania Railroad Company never issues
securities when prices of securities are
low. as they are today. A glance at its |
Former financing will show that its
bonds and notes are issued at a time !
when they command par or over, and on !
basis of about per cent ] know |
that the Pennsylvania is borrowing |
money at present from the Government |
at 8 per cent, and so long as it can
continue to do that It is not likely to
issue any notes at popular rates. when /
Il would be compelled to pay per cent |
and upward. When the PENNSYLVANIA |
can issue notes that will cost less than
3 per cent, then" he said. Il will look .
for an issue, but not till then.
New Bond Offerings
There are a number OF new bond Of :
Perings to be made, during this week,
and bankers having these transac-
tons under advisement say already
they have had substantial inquiries
with expressions of desire to partici-
pate in the proposed financing.
3 There was firm undertone in the
pond market on Saturday. with n fairly
ifDeral volume of trading recorded for
halliday session. Prices were not
1paterially changed from yesterdays
&s1al levels. but there was good in
uufry for most securities which have
boen active in recent trading both en-
he New York Stock Exchange and
over the counter.
While 1t may be that the stock
market will show reactionary tenden-
r1es during the coming week, it is not
thought that this will be regarded in
The bond market to any appreciable
extent
Y American Telephone and TELEGRAPH
bonds held firm at close
10 par. Consolidated Gas convertible |
q were quoted at from l03 to 1O3 "a.
southern Pacific convertible 5s at from !
1909 to 1917 Other railroad issues !
Were firm. although only a moderate ,
apnount Of business was transacted in |
them.
Liberty Loan bonds were firm, par
tieularly the AIS. in which there was a
considerable turnover. The 3ias also
were In good demand. =
Foreign government issues were quiet. |
with small amount OF trading re-
corded in this department.
Short-term notes weee greatly stim-
ulated by the quick sale and oUersub-
sc-sotion of the s25. 0O0, 900 of American
Tobacco notes. Investment houses saw
fhat results of this character in times
}1ks the present have tendency to
sfimulate enthusiasm in the trade and
lend degree of encourag cement to
those contemplating other fresh ofYer-
inga
Tho coming week Is expected to be
one Of the most active in the short-term
note business. and a number Of new Of
feftngs will probably be made. New
York Central IS Of September, 1919,
NGe In active demand at 99h 10 99h,
~ yield 5.bl per cent.
Brokers' Opinions
Chandler Brothers & Co. say: Alas!
~ railroads continue to be the goat
~ Ntld ORGY OF syndicate speculation in
- old stocks carries on for weeks
y0Aout interruption until extraordinary
&GA prices are reached--but when the
UD Poads. under such competent leader
- - Pennsylvania. Southern Pacific,
! 91tng, ETC., commence to advance, i'm
1laEely the banks start calling loans
~ the money pool convenes to con.
- 0wise extension of loans. and