The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-02
EVIDENCE OF BASIC
STRENGTH IN STOCKS
Adverse Influences Fail to
Check Upturn and Heavy
Operations.
BOND MARKET BROADENS
Foreign Trade Expansion and
Big Crop Prospects Cause
Optimism.
BOND MARKET BROADENS
NJ WILLIAM Jusrus BoIrs.

In view Of adverse influences that II
had to contend with the stock market
Of last week gave an extraordinary
demonstration of basic strength with
sharp upbuilding OF prices In various
quarters. The movement was broad
enough to show that the outside public
as heavily interested in the speculation
Notwithstanding the somewhat startling
observations of Mr.. Vanderlip In the
course Of his remarks before the Eco
homie Society.
This address is likely to rank among
the sensational episodes of the year, and
had the situation been less sound It lie
probable that the market would have
been seriously unsettled by IT. The re-
Spouse was not at all disturbing, how
ever, and while there has been heavy
selling In some quarters the recessions
which took place were not sufficient to
provide a genuine reaction.
Encouraging News.
In contrast with the rather dark pic
ture drawn by Mr.. Vanderlip there was
much in the news developments of the
day to support the contentious of those
who believe that the country Is headed
for sustained business revival. and that
when the peace compact IL out OF the
way method will be devised for pro-
viding Europe with the credits essential
to carry on record breaking commerce
with this country. Director-General
Hines OF the United States Railway Ad-
ministration emphasized this view on
his return from an extensive trim
through the West. declaring that the re-
construction process had gone far enough
to indicate that business recovery was
inevitable. owing to the pressure upon
the country to produce the merchandise
that was urgently needed to make up
for the deficiency resulting from the
reduced output during the interval when
productive machinery was utilised prin-
cipally for Government work. The influx
OF buying orders from interior cities
showed that the demand for seasoned
securities was assuming nationwide pro-
portions. and that to a greater extent
than at any time since the world war
began the investing public was mani
Testing It's interest in worth while Sc
curitIes
Quick oversubscription Of the SIC, o0o,-
600 Rio de Janeiro loan was highly sig
nificant In view of the approaching de-
mands for immense loans for foreign
Governments and municipalities. This
Offering showed that a 6M per cent. In
come return with maturities ranging
from three to twelve years was suf-
ficient to attract large support from the
investing public In cases where a strong
foreign municipality was back of the
loan. This fotation prepares the way
for other financing Of similar character
and shows that the American public is
ready to finance the requirements OF
foreign municipalities, IL these are held
within reasonable limits The proba-
billy Is that many such loans will be
offered in the near future unless I'M
favorable Developments In the foreign
situation should occasion fresh unsettle.
ment
The bankers have the situation we'll
guarded, however, and with proper re-
strictions there is no doubt but that a
broad market for foreign securities can
be created in the United States. Impor-
tant developments may be looked for in
the near future. for the proposals made
to high banking interests here show that
with the signing of the peace compact
work Will be begun upon various con-
structive enterprises that were held up
during the war commotion.