The Washington herald., 1920-08-15
RAILS LEADIN
BOND MARKET
Moderately Increased Ac-
tivity Shown During Past
Weeks Buying.
lNDUSTRIALS ARE DULL
Flood of Short Term Notes
Proves Detrimental
To Market.
INDUSTRIALS ARE DULL

Moderately increased activity was
SHOWN in the railroad bond market
curing the week, but industrisls
appeared 70 be neglected. Fraction
d gains were shown in practically
all Of the rails and there aDnesrsd
to be a somewhat better G'msr5
Dut the advances which were rc-
corded Immediately following The
decision by the Interstate Com
merce Commission for Increased
freight rates, apparently has stoned
with the two or three point IN
ward movement esta ab!iShcd This
might have boo carried further
mad 1t not been for the action by
some Of the State commissions in
refusing to cOUntenancc the r-ov-
eminent bOdy's action and tbera
promises TO be considerable con
tr"Ncrsy before the revised srre5-
ule will be permitted 10 become
generally effective.
short Term Notes.
One OF the factors which has
proven detrimental to the brD-
market has been the food of short
term note issues which has been
placed with investors since the b,--
ginning Of the current year. Dur
ing the latter part Of juno there
developed fairly good demand
for the best grade bonds hu- the
slack was Immediately sbsn-br1
through large offerings OF short
term notes at unusually attractive
interest return rates. This has rr-
suited IN some upset in the va-kc.
as many are asking what railroad
bonds as well as industrtaTs really
should sell at with the best Grade
short term notes quoted al prices ID.
yield from ~ TO per cont Il
Will probably require some little
time 10 effect raadrusr--r7r OF
the bond market situation rr nee.
the newly created conditions
Numerous new issues rrrbab7v
Will be put out between now and
the end Of the year. as many com
panles already are negotiating with
bankers Tor the sale of fairly sub
stantial amounts n short term
notes. New York Central is known
70 be in the market snr 5000 nO0
/ Chicago and Western Indiana for
similar amount, tho Erie Railroad
Company is requesting extension rs
about S20.0O0.0G0 0f bonds. and
there are many other corporations
some Of which doubtless viii en-
deavor 70 obtain even lar-er
amounts than the totals JUS men
toned Another element in tho sit
uaton is that of France. which IS
expected 10 arranged loan ~
from $100.GNooG0 % SI2- 600 .OD0 I'm
connection with tho AncIn-F-arrl
bond maturity. on October Il next
That country is arraUEir- TO send
about S5nOO6.O0O 0f gold -r The
United States between now and Or
tober- according to reports and
representatives. are now on The way
TO America 70 arrange the details
OF loan 10 meet a part NJ tho ma
turing obligations. While this docs
not involve the raising 0r new. mon
ey. il is a factor 10 ha considered
because II is possible that many -
the holders Of the AucTn-F-.r.r
bonds will not care 20 taxi o nov
issue in exchange but will Insist
upon payment in full on the due
date.
Bond men saw they E0 M. look
for any appreciate rhan-a fr the
market in the immediate future rr.
hopes are o7terta med rha- - grad
usl bertrrmout will take place s7
that prices eventually will work
hack to level more ro--Ty nor
NAL At the u0mor; r. Is anyona'e
guess as 10 the month 20 month
I fluctuations. but II fra expected
| defation IN commodities takes place
1T is a foTeE0Da conclusion that
/ greater amount Of funds will no
4 available for Investment channels
and this accord 5nrLv should prove
| Of Importance 10 N, securities
market as a whole Commodity
irrICes already have shown . fru-
Idcncy dow ward and m. rN9or---
ltions are that ihe-a Will Doe con-
tinUanCe OF such developments.
Treasury Certificates.
Some Of the large Investment
/ houses have reported fairly good
/ buying Of United States Treasury
I certificates Of indebtedness hg inc
diyIdUals and manufacturers which
/ is Interpreted as indICatin- that
their business is not at present or
la volume sufficient TO absorb all of
their surplus funds. Il is recoE-
nized that the Treasury certificates
/ not only possess the highest merits,
but show return. considering thcfr
exemptions OF above Glz per cent
/ Tho recent government issues have
been quickly absorbed and there
has been an increasing demand
4 from the public for this class Of
short term paper.
Foreign government bonds re-
Gently have presented an irregular
tone presumably because OF the un-
settlement incident to the Russian
Polish situation which at times has
assumed a most unfavorable aspect
It also has been instrumental I'm
somewhat unsettlinE the securities
markets in this country. although
some maintain that this would hav"
occurred anyway irrespective 0c
foreign influence