Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-11-01
GOSSIP OF THE STREET
MINGLED CAUSES
DEPRESS STREET
Money Committee Action Not
Only Factor in General lr-
ritation Peryadiup Market


There still exists considerable depres-
sion In the financial district over the
action of the New York money commit
tee. and everything which seems un-
pleasant is blamed on II.
AS matter of fact. there were a
number OF contributing circumstances,
which, combined. produced n general
irritation. and the temper OF the street
is due not to any one Of these circum-
stances. but could be traced TO all of
them. First, the extra dividend of
United States Steel common had been
cut from TO per cent. resulting in
general decline OF virtually the whole
list. Then came the news that the Gov
ernment had Cancelled a se0.o0O.0O0 or
der for troopships, which had been
placed some time ago with the Bethle-
hem Steel Corporation. This was fol-
lowed by an order by the governing
committee of the New York Stock Ex-
change to those who had expanded their
loans after September s. after a warn
ing by the money committee against
such expansion, and finally the action
Of the business conduct committee OF
the New York Exchange to curb the
manipulation in Mexican Pete
Speaking Of the action OF the money
committee yesterday. well-known
banker said. the action should have come
from Washington In the first place. that
It was unfair to place all the blame and
responsibility on the New York money
committee as they were simply obeying
orders from higher up" as he under
stood 1t, He also added that 1t has
dawned on those actually responsible
that n mistake had been made and that
very shortly the bars will be let down
al least part OF the way.
Market Becomes More Cheerful
| There was decided rally in the
stock market toward the close yester-
day, and the more cheerful tone was re-
fiected in the brokers' offices and board
rooms
Many brokers attributed tho sudden
! change to the news of an arinistice
being granted to Turkey. which they
interpreted as the beginning OF the final
| collapse OF the alliance of the Central
! empires.
Conservative brokers we're advising
their customers that yesterday and to-
| day would be bargain days that the
standard issues had reached the lowest
point they would for some time, and
except for insignificant temporary re-
actions quotations would go higher each
! day for some time. They considereu
the decline in Steel common during the
/
| conditions
| A banker called attention to Mexi-
| can pete" shortly before the close, and
remarked that II the stock was being
| investigated by the business conduct
| committee of the New York stock Ex-
| change he hoped they would continue
the investigation for several days II the
| effects produced would correspond VIII
| those Of yesterday.
! rumor that snakes we're discovered
in the Federal Reserve Bank Building
Yesterday was blamed by financiers or
the money committee OF the New YORK
| Stock Exchange, as they are gettihe
! blamed for everything.
There was another PennsylNania
Railroad rumor afloat in the flnancia
| district today to the effect that certain
| bondhouses were soliciting orders FOL
Pennsylvania Railroad ten-year pei
| cent secured notes. II. as and wher
| issued Like all similar rumors apou'
| PENNSYLVANIA financing. 1t was foune
! to be without foundation In fact.
Bond Issues in Popular Demand
| A good deal has been said recently
| in this column in interviews with BANK
! ers and investment concerns regarding
| the large business which is being dons
by them in bonds and how that many
! investors have turned from the stock tt
/ the bond market.
| The popular investments today are
( short-term high-yield bonds and con
vertible bonds. The situation has beer
| summarized by Henry l.. Doherty q
Co. in their letter of October 2S. al
follows:
The last two weeks In the security
markets have been notable for the vtgor'
Gus up-turn in prices of bonds. Witi
RI ilroad and public-utility issues leadinf
| the advance High-grade railroad bono:
| showed an average advance OF Amos
points, second grade railroad bond:
showed an average pdvance OF more
than 5 points. while public-utility bond.
made an average advance of almost
points Industrial bonds showed very
little advance, the reason for this being
of course, the fact that industrial issue:
have been making much the best show
ing heretofore.
1t Is worthy OF note that convertible
bonds led the advance in all classes
Where bonds of this class are convert
ible par for par at the option of thu
holder they usually move In very clos'
sympathy with the price of the stocks
into which they are convertible. Ther'
are many bonds. however. the convert
ible features OF which are of no pres
conversion privilege cannot be exercised
until some time In the future.
Mexican Petroleum Company first ant
refunding convertible per cent bonds
| series a, which are due in october
1921 and are convertible into common
stock of the company at any time VI
to April I, 1921, made a sensational al
vance of almost 60 points. Pierce On
Company 8 per cent notes. of which III
6s Of 1921 are convertible into stool
of the company at $50 a share, and .th
6s of 1924, convertible into stock a
$25 share, also made "a material ad
vance.
Southern Pacific convertible pc
cent bonds, which are convertible on o
before June /, 1924. into stock of tn
company at par, advanced IL point
from their low of this year. Southern
pacific convertible 4s of 1929. which ar
convertible on or before June I. 1918
into common stock at $40 share, ant
Atchison, Topeka and Santa Fe con
vertible per cent bonds of 1860. whic
are convertible at par into common stocl
prior to June I, 1923. also advances
sharply. Consolidated Gas Of New
York convertible G per cent bonds
which are convertible into capital stoc
Of the company on any interest dat
prior to February l. 1920, at par, showe
an advance for the year of more tha
points.
Throughout the entire list of con
yertible bonds listed on the New Yorl
Stock Exchange there were advances
the advances from the low price of tn
year ranging from to points In tn
'Pierce OH convertibles to more than 2
points in the Mexican Petroleum con