New-York tribune., 1918-07-29
@ Wealth Markets and Commerce
Finance = Economics
WALL STREET OFFICE:
Hills BaildinE, Is Broad St.

With a preponderance of favor
able news, including further strik
ing successes in the powerful Allied
counter offensive, now in it's second
week, along the Soissons- Rheims
salient, the security markets main
tanned q firm tone last week on
quiet trading. Prices of representa-
tive speculative and investment
shares advanced moderately. There
was, however, no important expan-
sion in the volume Of activity, the
weeks transactions representing, as
they had for several months, main
ly the speculative operations of pro-
fessional traders. 1t is quite mani
fest that the outside public is con-
tent to play the part of the specta
tor in these times, when the secur-
ity markets are SO surrounded with
uncertainties. The public has done
nothing in stocks in an important
speculative way in more than a
year.
There has been some quiet ac-
emulation of investors shares, as
there always is, but this is not suf-
ficient unto itself to bring about any
great speculative markets such as
Wall Street experienced in 1915 and
1916. That there will be a return
of such broad speculative activity is
doubtful. The supply of funds nee
essary to finance stock market oper-
ations on an extensive scale is
wanting. Moreover, it is extremely
unlikely that the Federal authori-
ties would look with favor on any
wild and frenzied speculation at
time when everything non-essential
to the successful conduct of the war
is under the ban.
The further advances of the AL
lies along the Marne front during
the last week has resulted in some
what of revision of opinion in the
Street as to the probable duration
of the war, although it is generally
believed that the campaign will be
carried into 1919. The prospect of
the increased Federal taxes has
loomed larger on the financial hori-
zon, although the outline as laid
down tentatively by the House
Ways and Means Committee as it
applies to excess profits is not so
drastic as has been expected in
many quarters.
Extremely quiet conditions have
prevailed during the last week in
the investment bond market. Aside
from the sale of $15,0OO,O0O of
short-term notes Of the City of New
York, put out on 1926 per cent
basis, there has been no important
new financing. The demand for high
yield notes of recent issue continues
heavy, and it is expected that cor
porations in need of fresh working
capital will take advantage of the
opportunity presented and borrow
in the open market. Definite infor
nation has come from Washington
that the fourth United States war
loan will be offered for sale on Sep
tember %, the campaign for SUBJ
scriptions to run for three weeks
Considerable interest is manifested
as to what features the new issue
will embody, especially the rate Of
interest that the bonds will bear.
Ever since Secretary McAdoo an
nounced the new series of certifi-
Gates Of indebtedness it has been
understood that the next war loan
would call for the raising of S.
O0O,000,000. The present discount
on the last issue of 414s may, some
bankers believe, result in rate of
AZ per cent being fixed upon the
impending loan. But, whatever the
rate agreed upon, bankers every
where are unanimous in their opin-
ion that the fourth loan will be a
pronounced success. 1t is probable
that Secretary McAdoo would hest
tate about advancing the rate to