Evening star., 1921-09-24
CAR EQUIPMENTS
ARE READILY SOLD
Investment Houses Find In
quiry Larger Than Antici-
pations.
RY l. A. FLEMING.

The great ease developed in the
money market and the plethora of
cash seeking investment, coupled
with the lowering OF discount rates
by federal reserve banks. has de-
veloped the fact that railroad trust
certificates bearing interest at rates
that would not have been considered
by investors ten days ago as in any
way tempting are now commanding
the attention of those looking for
employment of their funds at best
rates obtainable.
Bonds have advanced to a point
where they are becoming less attrac-
tive for their return, and the bond
dealers are looking for new issues
and have turned their attention to
the large block of equipment notes
held by the Treasury Department.
Within the last few days these car
trusts, which yield 6 per cent and
less. have become an attraction.
largely through the cutting of the
discount rate of the federal reserve
banks of New York and Boston to
per cent, and S100,000,O00 sold by
the government have been sold
ment bankers.
The proceeds of these sales are be-
ing applied by the government to the
claims filed by them against the
Railroad Administra ton on accounts
growing out Of the period of control.
Banks all over the country have
been sending to the investment houses
for car trust notes, as an investment
for surplus funds.
Late yesterday Kuhn. Loeb & Co.
closed a contract for the purchase of
S3l. $4,000 of the S4S,250000 Pennsyl-
vania car trusts held by the govern
ment and issued under the Philadel-
phia plan.
The bankers have set Monday for
the sale of these trusts to the general
public. They are per cent gold
certificates, maturing serially, annual
ly from January Is. 1928, to 1885, and
are the only certificates under the
equipment trust made with the for
mer director general of railroads that
are issued under the Philadelphia plan.
1t is within the probabilities that
s50.000,000 additional trusts can be
disposed of without straining the
market. in which event one-half of
the entire amount issued, $325, 100000,
will have been marketed.
The marketing of the balance will
be conSummated over a longer period.
should Bring Lower Rates.
The lowering of discount rates and
the increase in the supply of money
should bring lower commercial rates
in the relatively near future. Bank
deposits here are holding up remark
ably well. despite investments made
in certificates. So long as the Rich
mond Reserve Bank is borrower it
will probably hold to the present rate
of discount, but efforts should be made
by the governor and directors to bring
about n readjustment that will enable
it to follow the general trend. 1t is
out of line today.
Short-term notes put out September
10. payable September, 1924. are quot
ed at 1901. bid. ALI certificates are
held at considerable premium.
May Make Gold Loan.
Leading bankers are said to be con-
sidering a gold loan, with the govern
ments approval, to England. bankers
taking the responsibility. 1t is said
that $500,000,000 is contemplated as a
means of using the gold to help the
foreign trade.
One banker is quoted as regarding
the big stock of gold held here as a
potential danger. This belief is evil
IDENTIFY founded on the theory that too
large holdings of the yellow metal,
may lead to the adoption of the silver
standard elsewhere.