Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-17
GOSSIP OF
THE STREET

81 ''ehl movement IN united SthteS
steel common. The head of one large
commission house has expressed himself
as being positive that. with this start
OF an upward movement. the market
VIII become broader and more active
and continue advancing for long
period
there is nothing in the trading in
nited states Steel common. however,
mat can be regarded as impressive, most
or the buying coming from houses that
nave often acted for speculative plungers
ana there X no reason to believe that
these buyers have any special informa
non in regard to the affairs and intcn-
uons or United States Steel or anything
outside of common knowledge of the
market situation generally. They are
Strong enough. however, to exert de-
termining influence on price movements,
and 1t is possible that buying orders on
ialriy large scale may come from these
interests.
Generally. this buying Is not looked
on with satisfaction by those who are
ottcn identified with sustained bullish
operations, and it is expected by them
,hht even ii higher prices are forced
IN some stocks. it will not be long be-
l"rr those who are buyers turn to the
selling side and dispose Of their holdings
without regard to whether the opera
lons result in profits or losses.
outside of this interjection OF profes-
Hiohal speculative interest, the market
situation is regarded as essentially
strong and would be all the stronger If it
were not for the efforts to create outside
interest by reports about coming spe-
cial developments, such ms the declara-
,ion OF n Liberty bond dividend on
nited States Steel. that has been made
sions.
IL If said by one of the largest bank
ing dealers in foreign exchange that the
continued strength Of sterling which sold
at new high, since last July, that the
chlef feature of that market Is that it
is absol lutely bare of supply and the
same thing might be said about the stock
market. 1t has been commented on
that offerings Of actual stock have been
extremely small. with the floating sup
ply in the Street constantly depleted
| until 1t Is now the lowest in amount that
any of the active brokers can recall.
Some interest is shown in the manner
in which motor stocks are bought in
recent trading and special attention is
! paid to Studebakcr and Chandler motors
interests, often identified with market
operations in those stocks talking about
coming material advances being in pres
pect.
The action Of Ae petroleum issues
| iS also regarded as extremely favorable
and II is asserted by some Of those
watching the trading in these stocks that
it will not be long before vigorous ad-
vances occur in issues like Mexican
pctrol leum, Royal Dutch and Pan
American.
Success of New Financing
| Bond men. in discussing conditions
relative to the trade, say that in their
| opinion there are many factors con-
tributing toward success of new tinanc
ing undertakings, including the showing
up in commercial activities which. in n
measure. has released some of the so
called frozen credits" the practice Of
thrift on the part of the public, which
TO n considerable extent has been
| brought about by those interests that
were cndeavOring to gougc the public in
the matter of prices charged for com
boditicS, ~rOduCtS, etc, and some nlSC
profess to believe that the operations OF
the Nolstead act have been an in,
tluencing clement in the investment
situation.
Naturally. with the narrowing dow
Of business generally, money which
of general mercantile lines Is free from
employment elsewhere and the purchas
Of securities is the most logical Channc
for it to seek, particularly because o
the unprcCedentcdly attractive incOm
return Obtainable through the purChaS,
of the multiplicity Of high grade secur
tiles which are now available in the Opcr
market.
Reading General Is
Although the Reading segregation
plan, az filed in the United States Dis
trict Court, placed the amount Of gen
eral mortgage bonds Mt 500 ,524 900
this represents the condition aS Of De
ccmbcr 81, 1919. the period covered il
the last annual report. The amount o
bonds actually outstanding has been re
duCei since that time by 81 .G6O,OOO t
S94 .SG4 600 through purchases for th'
sinking fund in January, 1920, anC
January, 1921.
Under the segregation plan. the Read
ing company is to receive 81 per share
on its stock from it's own stockholders
or ST., 900 900, and 10000. 900 in cast
or current assets at market value from
the coal company, making a total o
S15 600. 900 in cash or cash assets
Payment Of II 10 per cent premium upor
the $94, ,S64 900 general mortgage bond
actually outstanding would call for I
maximum sum of 50, 4S6, 400, giving thu
Reading company from this TRANSACTION
Sc. l13 600 cash.
The general mortgage provides sink
ing fund of five cents ton on Goa
mined from the coal lands. Outstanding
general mortgage bonds have been re
duced $l1 $50, 900 10 date through
operation of the sinking fund.
Long term Bonds Lower
Prices of high grade long term bonds
which have been actively traded in Ovei
u series of years. recently have showr
tendency toward lower levels, thi,
being brought about entirely by the at
tractivencsS of the newer offerings
which have been made showing suCl
high income return on the investment.
II is perfectly obvious that either III,
older issues must come down in price Oi
the newer ones go up in price, so that
n proper equation of the two Is reached
and, therefore. it has not been surpriS
ing in the trade that the price changes
recorded should have taken place, be-
cause il simply represents rcadjuSt
mcnt of quotations to meet the newly
created conditions.
Cut In Steel CIinches Business
Recent independent steel price cuts
"have met expectations in the words
of the Iron Age THE price cuts
clinchcd business known to be urgent" "
observes that journal. "hut have post
pOncd these purchases which could be
| held back for the time being RumOrs
of prices below those Of actual transuc
! tions were 10 be anticipated. making il
! rather difficult 10 get liked ideas about