Evening star., 1920-05-27
REAL IMPROVEMENT
IN INVESTMENTS
Believed That Today's Action
Indicates Turning Point
in Credit Conditions.
by srUARr p. wEsr

NEW YORK. May 27.-Again today
the foremost feature was the con-
tinued recovery in the investment
sections OF the market. Speculative
issues which had hesitsted yesterday,
and finally yielded to profit taking.
regained their upward drift and made
some notable advances in the course
Of the day.
Still the speculative market was not
as interesting and by no means as
important as the investment market,
When one stops to consider that in.
vestment securities have been going
down with scarcely an interrSption
for nearly nine months it is difficult
10 overrate the Significance of the
upturn which started early this week.
and which is not displaying every
reasonable indication of permanency
Advances of a point were the rule
an through the bond list. and this
from the average level Of bond prices
al the start of the week.
voiume OF trading both in the bond
crowd on the floor Of the stock ex.
change and over the counter"-that
DE- nandsd ln the Ha,v inseroitice 1t te market-ex:
!nat It was a real increase in the new
investment buying that was taking
place: and not simply a little recov-
cry In an oversold market With
oonds went investment stocks.
the higher priced dividend paving
rails. the depression in which had
been one of the most disturbing in
cloents q week ago. had the best dav
tney nave had In a long while. The
;nacs unusual ; activity In purely investment
Ss.e wss nota, IKE Union Pacific preferred.
So was the better demand for ,bA
shares. 're0
This is the first run in the invest.
ment market that has occurred in
nearly a year. with the turn in the
time money market and the credit sif.
uation generally.
A great investment fund has been
awaiting proper time to get busv hut
~ mas not been willing to act until
there were positive signs of a let
up in the credit strain.
inese signs have now appeared. and
ABUNDANT testimony has been given
from high financial quarters that the
peak Of the credit troubles has been
reached and that we are definitely
The good feeling was STRENGTHENED
today by the unexpected arrival Of
$2O.OO0.000 gold from the far east At
nrst 1t was supposed that this ship
ment represented repayment on the
later established as coming from
China at the instance of the British
government.
Everybody had looked for the re-
sumption of gold transfers. but had
expected the movement would start
from London. The fact that the gold
was coming in from the far east
was a proof of how Great Britain
was calling in its free supply Of the
metal from every possible quarter in
order to improve it's credit stand
ing in this country.
Speculative Shares Firmer.
In the speculative market the same
undercurrent of increased cheerfulness
was apparent. Still there was no idea
that the time was right for any sus-
tanned speculative revival. The only
feeling was that the corner had been
turned. that the market was well sold out
and was in a good position to respond
to operations for the rise in special is
sues where speculative cliques are at
work, and which for special reasons are
regarded as undervalued where they had
been recently selling. Indications Of
these speciality moves was sufdcientiy
seed, United Food Products, Tobacco
Products and American Locomotive.
Helps the Rails.
The strength in the rails. although
in the main a response to the i'm
provement in investment conditions,
was also helped by the testimony at
Washington before the Interstate
Commerce Commission. which was
hearing again today the railway side
of the argument for very much
higher freight rates. The point was
made very fully and emphatically
that the reproduction costs Of the
roads As determined by the commits.
have In nearly every instance 20 far
proved considerably larger than the
property tnvagtmsnt accounts which
the railroads are willing to be made
n haaia for rata YnAkfnR