The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-04

as probably correct The loan accoun
has been materially reduced through
the liquidation Of the last few days. 81
that the technical position of the stool
market has been strengthened by thu
wedding out Of poorly margined accounts
Some of the selling by out Of town In
forests was attended with the hardshipi
Itch are usually encountered at &
time when the credit facilities of {
& eat market are being carefully cur
tailed.
Revival OF Speculation.
In view OF what was happening tn,
stock market gave an excellent accoun
OF itself with a spirited upblddins o
some shares. This was not surprising
when the extraordinary news develop
ments OF the week are taken into &C
count, including the surrender of Turkey
the apparent breaking up Of Austria. tn,
rumored abdication OF the Kaiser. thu
deliberations Of the War Council in Yer
sallles and the continued military sue
cesses OF the allied forces. All thes
Incidents point SO strongly to an earl.
ending OF the war that the marke
toward the close OF the week reflected
increased public buying with some out
burst OF speculative enthusiasm OF tn
sort which Is often the forerunner OF |
period of sustained speculation. In tn
course OF this movement all the seasone,
stocks have come to be In better dehnan,
and the absorption Of high grade d.vi
dend shares by small investors has beef
a factor OF real Importance. The prob
ability, therefore, Is that speculative &C
tivity' will continue and that the de
mand for securities will broaden ma
terially within the next few weeks. pro
vlded, OF course, no unfavorable develop
ment In the war situation takes place
But the money pool committee still hold
the whip hand and can impose furthe
restrictions II It cares TO-
A striking feature OF the broadening
demand for high grade securities ha
been the increased buying OF bonds b
investors. This movement has been gain
ing force from week to week and nor
that the Governments loan operatio
has been provided for, there Is reaso
to expect continued Improvement In bon
market conditions. Nearly all classe
OF bonds have been In better request an
within the last few days there has bee
good buying OF municipal issues an
other tax exempt bonds. The marke
has also developed an important deman
| for those convertible issues which ar
thought to have good speculative posi-
billties. The volume OF bond dealings o
the stock exchange touched a new hig
monthly record in october with tota
transactions OF $233.9s4.5 500. This rer
resents a gain OF s17,l3l.000 over tn
previous high monthly record total mad
in November. 1904. Heavy trading !
| Liberty bonds accounted in part 70
| the striking Increase in investment buy
/ - t.,1VN
tant factor, however. was the broade
demand for good corporation issue
which for months had been neglected
These transactions reflect clearly an tIr
portant increase In public buying c
bonds. which is all the more noteworth
| In view OF the 10 per cent. oversubscrir
ton to the Governments record breakin
| sc, ooO, 5000, 900 war issue OF last month
Our New Bond Market.
These developments are most sugge:
tive and indicate plainly that the Unite
States has the largest bond buying pub
| lie In the world. The potential deman
here is greater than anywhere else. 70
with 1880, 900 names on the list for III
| last loan a point has been reached wher
| the Government has succeeded In Rettin
nearly one quarter OF it's citizenship {
purchase bonds. The probability is ths
| the Governments total OF 1886, 1850
Fourth Liberty Loan subscriptions wi
! be exceeded when the full reports are |
and all oversubscriptions have been eT
tered. The public is still buying III
bonds and II VIII be several days ye
before the operation has been concluded
/ A highly gratifying feature OF the sui
scriptions has been the indication ths
every Federal Reserve district has e,
ceeded its quota. with heavy oversut
: scriptiQns at Boston, New York an
/ other important centres
There must be further Liberty Loa
issues whether the war ends soon c
not. The Government in the near futur
will probably announce important |!
sues Of treasury certificates OF indeb
edness which the bs nks have been gla
to purchase In anticipation OF futur
sales OF Liberty bonds. These shol
term obligations represent the highe!
type OF temporary investment and a
though the income return Is niue
smaller than that obtainable from sim
| lar loans put out by railroad and ir
Industrial corporations the market fc
the Government notes Is much broade
The developments OF the last fortnight
however. show clearly that the countr
| Is passing from a period OF short ten
financing to one in which there will b
a much broader investment demand fo
the longer term bonds.
| Notwithstanding the record brealin
subscriptions for the various Libert
Loans that have been offered. there
apparently large uninvested fund
the hands Of individuals and corpora
lions which will be gradually reen
ployed in high grade bonds obtainabI
at prices which show an unusually ger
erous investment yield for securItit
OF that class. Nothing has develope
in the financial situation Of the pa
few weeks OF greater encouragement
than this material broadening OF ii
demand for high grade bonds of III
distinctly investment type. This show
that the American public has reentere
the bond market in no uncertain wa
and that Notwithstanding the necessit
OF providing adequately for new war II
sues, there will probably be a CROWN
investment support for thousands {
municipal, corporation and railroa
bonds which have been almost without
market ever since the United Stat,
entered the list of belligerent nationA
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