The sun., 1919-10-27
FINANCIAL NEWS
AND THE SITUATION
Public Trading Is Broadened
i'm Week of Sensational and
Important Events.
NEW FOREIGN FINANCING
Investment Buying Continues
in Spite of Unsettled
Labor outlook.
NEW FOREIGN FINANCING
ny WILLIAM JUsTUs holes.

Notwithstanding excitement caused by
sudden dissolution OF the National Indus
trial Conference at Washington and the
threatening attitude assumed by labor
the public participation In the stock mar
ket enlarged last week materially with
resumption of 100000 share day trad
ing. 1t was In many respects a remark
public was eager to resume speculation
on large scale. The favoring turn Of
money rates assisted that movement and
provided for Az and per cent accom-
mediation, which a week before cost trad
ers 10 and Is per cent. The movement
%as-not without spectacular features
familiar upbidding in steel stocks being
the development of chief interest. The
demonstration was suggestive of the
gathering force of the bull market and
showed that. although the movement
may be interrupted. indications favored
a genuinely higher price basis.
Broader Investment Inquiry.
There were definite signs, however. Of
quickened investment demand by a pub
lie that put in large subscriptions for the
| new British Government s250.000, 900
| loan, by far the most interesting foreign
Government Offering in this market since
| the armistice was signed. 1t was signif1-
| cant that the official announcement de-
scribing the loan suggested that a large
portion of It will be available to the
British Government for its requirements
in this country and for those of British
merchants to whom the British Govern
ment may sell the dollar exchange" II
| Is apparent, therefore. that that flota-
ton marks the beginning OF a well or
| ganized movement to stabilize foreign
exchange rates and provide credits
needed to enable, importers OF Great
| Britain. France, italy and other coun-
tries to release immense buying orders
for American raw material and merchan-
disc. The start thus made Is OF great
| significance and lends interest to what
was said last week by Thomas w. La
mont before the Investment Bankers AS
ISOLATION in st. Louis and by Dwight w.
Morrow to the Foreign Trade Council in
Atlantic City concerning necessity Of
making ample advances to nations which
desire to do business with US
Important Foreign Financing.
There are n dozen or more foreign
| Governments DESTROYS of placing loans in
the United States and. unless unforeseen
obstacles be encountered. the probability
| is that many of those issues will be mar
| keted successfully here. The programme
| may include later on formation OF a
huge investment trust on lines suggested
by Secretary Redfield to deal In foreign
| Industrial companies securities. But be-
fore that be attempted the recourse will
be to the investment market direct in the
effort to obtain popular support for for
| al m
! by Wall Street bankers. Those loans will
assure income return high enough to
compete effectively with home issues and
carry. In some cases. attractive CONVEX
! sion features enabling holder to ex-
change a few years hence his security
| for a long term investment. The full
| programme has not been announced, but
\ 1t Is evident that possibilities of the
campaign have been oanvassed suffi-
ciently by bankers charged with respon-
sibility of making those great loans a
success.