New-York tribune., 1918-06-24
Finance Economics
WALL STREET OFFICE: r..nhon..
Mills Building, Is Broad St. Hanover e6l

Security prices maintained gen.
eral tone of strength last week on a
comparatively light volume of busi-
ness. In the stock market operations
were almost entirely professional,
with little evidence of public par
ticipation. Prices Of representative
issues reflected moderate improve
ment as result of the weeks trans
actions. Industrial shares predomi-
mated in the trading, number of
issues touching new high prices for
the current movement. Develop
ments In the theatre of war were
almost uniformly favorable, but
there was disposition among specu-
lators and investors to await i'm
pending events before increasing
their commitments. From the Wall
Street point of view the war out
look is distinctly encouraging. The
Austrian offensive on the Italian
front has so far proved costly
failure, and there is reason to hope
that further efforts to break
through the Italian line and into the
Venetian plan will be frustrated.
Meanwhile a state of relative calm
has continued on the Western front
in France. 1t is generally assumed
in financial circles, as elsewhere, that
the German military command is
gathering its forces for another
powerful thrust against the Allied
line. But everywhere there is su-
preme confidence that the Allies,
strengthened by more than 800, 900
American troops, will be able to
parry the blows. Optimism in finan-
cial circles is'growing with the rapid
increase in the strength of the
American overseas fighting force.
One of the most powerful construc-
tive influences in the security mar
kets to-day is unquestionably the
realization on the part of the finan-
cial community that the United
States is now really getting into it's
full stride in its war programme.
Conditions in the general bond
market underwent no important
change during the week. Prices,
while more or less irregular, dis
played firm undertone, and there
was fair inquiry for the better
class of investment issues. Develop
ments in the market for new CAPT.
tai were the most interesting in
weeks. The American Telephone and
Telegraph Company arranged for
the sale Of $44,500,000 of new
seven-year convertible G per cent
bonds. The issue will be formally
offered to yield IL per cent early
next month, after the stockholders
have authorized the transaction.
This is the largest bit of corporate
financing that has been done pri-
vately in months. The Brooklyn
Rapid Transit Company, which has
$57.735,000 Of 6 per cent notes
maturing July i, obtained from the
War Finance Corporation direct
loan of $17,320, 900, which will be
used to pay off a portion Of the
notes. The remaining notes will be
exchanged for new three-year Z per
cent notes under the terms of the
plan agreed upon. Municipalities
were active in the capital market
during the week, large number of
small loans being arranged.
Having passed the period of
greatest strain imposed by the ex-
traordinary Federal tax payments
without difficulty, the money mar
ket last week began to reflect a
moderately easier tone. Banks were
much more liberal with their offer
ings of both call and time money.
which indicated that the pressure
against their resources had, for the
moment at least, been somewhat
lessened. At the Stock Exchange
there was an abundance Of call
money loaned at a per cent, which
compared with recent ruling rate
Of around 6 per cent. While rates
on fixed date funds underwent no
important change the tendency was
toward improvement, and borrowers
found substantially larger supply,
number Of the larger banks put
ting out considerable amounts Of
money on time at per cent for
sixty to ninety days. That there can
be any pronounced ease in the
money situation is, Of course, en-
tirely out of the question. Govern
mental demands for war purposes