Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-10-08

NbhlpuiitS SNlVht
and which. will be Of the highest i'm
portance In the formation Of new sys-
tens.
This il especially true Of Wabash
which, according to current report
will be the chief factor in new south
western system to be formed by the
Interstate Commerce Commission, with
the securities going into the new cor
poration on a basis which will represent
far more than their present market
value.
Confidence In Steel Group
The trade reports in regard to the
conditions in the steel industry were
looked on as n pronounced change from
the attitude taken by those reviewing
the steel trade recently md increased
confidence in the market outlook. for the
steel industrials n a group. 1t Is re-
Pnrdcd with satisfaction that. after the
recent unsettled trading. United States
Steel common and Baldwin Locomotive
both show only fractional losses.
Rise in Liberty Bonds
! The rapid rise in price of Liberty
BnndS in the last couple of weeks il as
Signed by local news bureau to an in
crease in purchases made by the Uniteu
States Treasury. which. in turn. has
stimulated public demand.
! In the month Of September the
! Treasury retired through the sinking
! fund S37, ,1G0, $50 of Liberty Bonds.
This was nearly eight times the aggre-
gate amount of bonds retired in til,
months of July and August. Transac-
tions In Liberty Bonds on the New York
stock EXchaugc in September. this
being their principal market. aggregated
3 n
amount Of bonds retired by the Treas
ury constitute more than 20 per ,"mL
OF this turnover. Liberty Bonds are,
of course. traded in mt nj, markets, SO
that the amount of bonds retired con-
stitGt"s II less percentage than ~ per
cent of total traded in throughout the
country.
Purchases by the Treasury IN Sep
tCmbcr had a more beneficial effect upon
the market than it has hnd in other
months when larger amounts Of bonds
wrr" bought in becaus" pressure to sell
has been removed and con 'cqucntly the
reduction In the floating supply Of bonds
tended to. firm the market.
Reduction Of Liberty Bon & in the
new fiscal wear. that is since .Iu'v l. by
August 81 ia. POO and and S~ntrmor,.
S37 100 80. It has hoca estimated that
the Treasury will rctir" in the current
frra' v"ar somewhat in excess of $3.50.
OOO 900 Liberty Bond. lis j. at the
rate Of more than 500. 900 .n0n Or
month. so that in the tirNt prnt1cr of
the wear government buying. IF bnnIs
for hiking fund WAS nrgfl below the
average.
Of th; mixing fn2lY. thr Treasury
5, e." r"n,mniTng nine months Of thg fiscal
year, W better thnn S23 900 900 per
M2hsR These linking fund require
! HcntS in connection with the renewed
investment d"rNand for the bonds prom
iscS ~ ca""v prices even higher.
Auothr" fn"tor bearing on the stca Is
1dvrncr in liberty Loan prices is a
'rndua, tendency fnr easier conditions
n the money market. This is having
, Sa'utNrv effect not only upon Liberty
ROndS but uOOn Investment issues in
General
Trend Of the Bond Market
\ downtown investment banker N
speaking Yesterday 0f the t"cnh in the
bond market said interest in invcstmont
,Srl''", ""ut"rS now to large cytCn.
on the issues of now railroad scruritrs
This cn>S nf security Sc"ms to have
the "n'l with investors and most Of the
recent issues have been "aS,lv placed.
In some cages the bonds i>>ucd by
some Of the roads hay" hrougDt higher
price than that at which the securities
were uffrrcd to the public originally
However. there has been no great
change in prices.
The rcadiu>tmcnt of the new rail So
curiti"s has h"rn extremely sat 'sfactory
to banking and investment houses. who
sec in il the possibility for favorable
reception to other contemplated offer
ingS. \ great amount of rail financing
is in prospect. both to prUvid" funds
for the purchase of needed equipment
and to meet maturing bonds in tie near
future.
That the investment demand for
equipment trust notes is extremely vital
is indicated by the fact that recent
offerings of such notes have been over
subscribed in a few minutes. Bond
men report Il continued inquiry for re-
cent issues Of short term rail issues
The general investment demand is
still far from broad. although there
appears to be- no lack of investment
funds where the issue and return suit
the investor. Industrial bonds and pre-
fcrrrd stock have met with Il fair de-
mand. Following the rally in Liberty
Bonds. there has been renewed selling,
with evidence that some of the buying
at least, had been of n speculative
character. However. there is said to
have been considerable amount of the
government bonds bought and put away
for permanent investment.
Efforts are being made to secure what
may be called II secondary distribution
of bonds, and corporations and banks
are being urged to encourage the pur-
chase of bonds by smaller investors.
4 factor which should not be over
looked in connection with the stock
market situation Is that Of the large
volume Of gold which is coming into til"
United States, with the assurance that
still further substantial totals ar to
be sent from the other side. This is
not bcariSh factor, and while it does
not assure a continuance of advancing
prices. it is interpreted as indicating
that money rates should not stiffcn to
any apnrcciablc extent.
Another faCto" which would rather
tend t. indicate raSier money conditions
was that Of the pronounced success OF
the French Governments 500 .WO.OOO
loan. The fact that more than SlJO, =
900. 900 bona fdc subscriptions were
received for this issue speaks well with
respect to tn" money market situation
generally Throughout the country.
Another factor v that the average sub
Scriptlon received was for amounts ap-
proximately $4,000 per subscriber. This
Is an accomplishment which has never
been recorded in the past.
The opinion Ct some important Oank-
-rS is that money rates will show an
4 90 hn