New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-06
Trade and Finance
Developments of the Week and
Their Bearing ON
the Omepmmk

the Outlook
What happened In the securities mar
ket last week 10 graphically shown in
the movements OF the price averages.
The curve Of prices for the hrst time
in good while was. upward in both
bonds and IN stocks, and what was per-
haps most striking was the fact that
railroad securities showed che most
extensive gains. The average price Of
twenty representative railroad stocks
which closed the week before at 65.7O
forged steadily ahead most Of the week,
getting to 6s.10 on Friday. At this
level the rail average was close to the
high range FOR the year. The low for
the year is $3.50, 50 that the extent Of
the recovery in recent weeks can
plainly be seen. AS 9or the industrial
stock average, the upward movement
Of thirty representative shares in
this classification amounted to nearly
two points net. The variation In the
average price Of ten railroad bonds
was almost as striking as that which
occurred in the stock group. The bond
average opened at 1855 Monday and by
Friday had risen to 1885. Industrial
bonds in the average moved but lit
tie, whereas public utilities recovered
about point.
The uplift in railway security prices
last week appears to have been re-
sponsible for turning the rest Of the
market upward. This favorable de-
velopment in the rails certainly WAS
the feature Of che markets. The rail-
way stocks at times displayed the buoy
ancy Of the old pre-war markets where
rails were the favorites Of speculation.
The buying was well sustained and to
all appearances Of good quality, repre-
senting accumulation by investors and
spectators who have come to look
upon the rails as having exceptionally
attractive possibilities in view Of the
new conditions under which the trans
portation companies are now operating.
1t seems to be the general opinion in
responsible banking quarters that the
railroads have at last turned the cor
ner and that most Of the difficulties
which have had such an adverse effect
upon railroad credit have been left be-
hind. This explains in large part the
aggressive buying Of both railroad
stocks and bonds.
The recovery in industrial stocks
was in sympathy with the upswing of
the rails. When the railway shares
turned, the complexion Of the market
changed completely. Professional bears,
Of late successful on the selling side,
found 1t less easy to depress the indus
trials as the week progressed. And
to make matters worse for them, call
money rates eased off to 6 per cent.
Despite the recovery in the industrials,
Wall Street was not nearly 80 i'm
pressed with the immediate outlook for
them as with the rails.
Broadly, there arc three ways that
foreign government can meet a loan
to foreign creditors. To paw or q
maturing obligation, such as the Anglo
French loan, which will fall due on Oc-
tober Is, it can ship gold, export goods
and services and can create a new
credit to supplant the old. France and
England have been confronted with
paying OFF the largest loan ever made
by American investors in year when
the balance of trade with the United
States is against them. England,
through the shipment Of some $70,00o,-
900 of gold and through the sale of
securities, the purchase Of exchange
and other credit devices, is already in
a position to pay off its half Of the
$5oo,0o0,0O0 obligation, without the