New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-12
w alth Nj arkets


With only a moderate increase In
the volume OF trading, security
prices improved q little last week.
the tendency toward higher levels
was attributed to the news OF the
new Anglo-Frcnch drive in the
Semme salient. With the general
growth of the idea that the great
blow struck by 'Feeh in the Marine
salient, followed by the new often
sive stroke to the north, marks
turning point in the war, it is not
surprising that sentiment In the
financial community should become
much more cheerful. Indeed, had it
not been for the stringency of money
it is not improbable that we would
have seen an upward movement Of
stock prices Of far greater vigor.
But, as matters now stand, the sup
ply Of credit available for specula-
tive purposes in the stock market is,
as it should be in times like these,
distinctly limited, and as long as
such condition lasts no one can
reasonably expect any important ex-
pansion in the scope Of operations.
Outside interest in stocks was
stimulated to moderate extent last
week by the rising strength shown
by number of the leading indus
trial shares which quietly entered
new high ground for this movement.
Otherwise the dealings were largely
Of professional character. Invest
ment buying of securities continues
on quiet scale, and the absorption
of stocks through this process no
doubt is a factor of much impor-
lance in that it tends to keep down
the floating supply. Interest in
stocks continues to centre mainly in
the industrial shares. Railway is
sues are being left alone until the
contract between the government
and the railroads, covering their re-
lations during the period Of Federal
control, is drafted In a form agree
able to the representatives of the
railroad security holders who ars
insisting that the agreement be such
as to safeguard the properties and
protect railroad credit.
Bankers who have had a hand in
the recent fotation Of short-term
corporate securities speak of an &C
tive demand for such high yielding
notes as have been put upon the
market Of late. Further financing
of this character is expected be-
tween now and the flotation Of the
fourth Liberty Loan in the closing
week of September. An issue of
$10,000,000 of public utility notes
was sold by banking syndicate in
side of two days last week. Ability
of the investment market to absorb
these new note issues has been ex-
tremely encouraging to both the
bankers and the corporations in
need of additional working capital.
In the market for listed bonds
there has been an active demand for
the Allied government securities,
new high records being made during
the week by the French cities IS,
the Paris IS and the Anglo French
5s. The movement in this group is
naturally a reflection of the turn in
the tide of the war. The Liberty
Loan u per cent bonds, which are
the only issue of United States
bonds that are free from taxation,
sold above par for the first time this
year. Much interest was excited in
i financial circles by the announce
ment made by Secretary of the
Treasury McAdoo that the fourth
Liberty Loan bonds will bear inter-
est at q a per cent, the same as on
the preceding issue. This was gen
orally expected, although a few
bankers have insisted that the gov
eminent would have to. raise the
rate to Az per cent if it hoped to
sell $6,0Oo,0oO,OO0 of new bonds.
The general opinion is that Az per