The Washington herald., 1921-03-27


or. four weeks OF dullness in the
bond market activity developed
near the close of the week and
prices became a shade better with
indications of Improvement OF
permanent character. developing IN
the market as a whole. Easier
money market conditions no doubt
have been responsible in some
measure for the Improvement
shown in the bond market, although
In the trade 1t was stated that
there has been a tendency toward
moderate Improvement during the
past few days as the result OF the
issues which already were out
standing having become fairly well
digested. 1t will be recalled that
new offerings of securities have
been confined to within narrow
limits during the past month as
this naturally has afforded time for
the issues already outstanding in
the hands of the public to become
better absorbed and more widely
| distributed in the hands of inves-
tors.
Huge Transaetions Pending.
within the next several weeks
there will be a number of important
financial transactions to be carried
out. In many of which IL Is felt very
little dificalty will be experienced
in arranging, particularly as there
| now appears to be quite a general
belief that the market as a whole
| viii undergo improvement during
the next few weeks, especially as
most bankers are of the opinion
that money rates are to remain easy
for considerable period. As a
matter Of fact some brokers have
| unhesitatingly expressed the opin-
| ion that the Federal Reserve dis
count rate will be reduced at an
| early date and also that the Bank
Of England rate will be shaded a
| bit within a short time New York
banks state that the demand for
funds for commercial purposes is
growing less each day and also that
the frozen credits which have been
experienced over a long period Of
| months are being gradually elimi-
| mated. Therefore, there is expected
| to be a greater amount of money
availabl for loaning purposes than
has been the case for many months.
| The natural inference is. therefore.
| that with easier rates obtaining
money will be employed in the pur-
chase Of high grade securities bear
ing a handsome interest return as
| II is recognized that the high in
terest returns on investment securi
ties is not long to be experienced.
| In times in the past when high in
terest rates have been realized. with
| the return of more normal general
| conditions, the interest return Mas
/ a M
basis which Is not improbable in
the present situation.
Probable Railroad PinancinE. 4
Railroad financing for the end of
the year will probably constitute a
! rather formidable total, although
at the moment transactions of this
character are being held in abey-
ance. Railroad securities just now
would not go particularly well with
the public, because Of the agitation
| which Is on in connection with the
wage and rate controversy. which
Is expected to result in sbrogation
| of the national agreements which
| were forced upon the railroads dur
| ing the McAdoo regime. There were
\ SO many evil situations which were
permitted to creep into the railroad
| SITUATION curing the period OF gov
ernment control that it has been
\ extremely difficult to overcome this
situation under private ownership
and operation again. Railroad man.
ayers. however. are looking the sit
uation square in the face and pro-
| fess to believe that the entire diff
ferences now obtaining between the
| carriers and their own men will be
| finally and successfully adjusted
directly. Probably as soon as the
situation in this respect clears there
| viii follow a considerable amount
Of railroad financing. but in the
meantime bankers are trifie ske
tical as to the advisability of such
an undertaking.
g.. Foreign Govt. Financing.
| Foreign government financing is
net popular at the moment and
therefore it is felt in the best bank
ing circles that probably no effort
will be made to undertake financing