The Washington herald., 1921-10-01


the equity Of the shares in the event
that the city should purchase the
properties. The stocks advanced
slight fractions. In the bond mar
ket Brooklyn Rapid Transit certifi-
Gates for this per cent notes went
up 2h points to 81. Third Avenue
refunding Is were up a half point
lnterborough Is up a full point and
there were fractional gains In In
terborough RGfunding IS, Third
Avenue Adjustment 5s and Manhat-
tan Railway Consolidated As.
One of the leading brok.r.
houses brought up a question todsy
as to the disposal which the North,
ern Pacific and Great Northern Rail.
roads will make OF the Chica 90
Burlington and Quincy stock. which
was pledged as part security for tha
recent issue of $3.50, 600, 900 Joint SIS
per cent bonds, and part OF which
has been made available for other
purposes through the convers,on os
the 6hs into Great Northern rs and
Northern Pacific IS. The two roads
held 1.65S,674 shares of Burlinrton
and used them as security for ~
joint SIS with the understanding
.nat II the amount Of bonds should
pe reduced by conversion or retire.
ment the bonds ami stocks pledged
as security might be witbdrawn
proportionately by the respective
companies. The last available re-
port showed that s111.721 900 of the
PAS had been exchanged for Great
Nortnern Is and s9.167ooo into
Northern Pacific 6s. Thus approxf-
mateiy oz per cent of the bonds have
oeen converted, releasing So per cent
ot ooz'olo shares OF tie BURLINGTON
STOCK. The stock is owned Jointly
oy the two railroads. The house
which brought out this point abb
stained from drawing any concIu-
siohs from 1t, but when it becomes
generally known the Street will
prooaoiy indulge in much mental
ana actual speculation on the prob
able employment of the released
stock.
A rise OF IL points on the first
few transactions in Delaw.r.
Lackawanna and Western .tooL
was all the response the marL.t
made to the declaration Of a divJ-
dend at the rate OF IL per cent an
nually. The directors virtually
raised the rate per cent, for the
last payment on half the present
outstanding stock was at the rate
OF 20 per cent annually. The mar
value OF this stock being $50. the
return at the present market price
is only about 5h per cent. Wall
street agreed with the directors on
the company's ability to nav n
higher dividend. There is some Az
ference of opinion, however, on the
wisdom OF an increase at this time.
The market regained on Thursday
all that II had lost IN four days.
This fact was set down today as ad-
ditional evidence that the line of
least resistance Is upward--that the
trend. from a long-range viewpoint,
Is upward.
This weeks statement of the
combined Federal reserve system
shows another increase in ratio to
the highest since the fall of 1917,
the new figure being So per cent.
The latest gain is smaller, however,
than those of the two preceding
weeks, and the statement gives evil
dences of a settling down within
the system after the sharp changes
attending the large financial trans
actions centering around the Sep
tember tax date. Thus the New
York bank loses a part of its pre-
vious sharp gain in ratio and GER
tain of the other banks in the
larger centers show corresponding
gains.
Not tho least interesting feature
OF the statement is the continued
improvement in the positions at
Minneapolis and Dallas. The latter
bank has strengthened itself for the
fourth consecutive week, and its
ratio. when computed without the
inclusion Of borrowed reserve notes,
stands at 22.9 per cent, as COM
pared with 80 on August 81. In the
case OF Minneapolis the correspond
Ing gain is from 24.5 per cent to
SS.1. In the meantime these two
banks have been able to reduce their
borrowings from the Eastern banks
from $4s.oo0.00o to $20,0oo.oo0. The
beneficial effects of the gain move
ment and the rally In cotton prices
are thus apparent In contrast to
this movement. the Atlanta bank
continues to increase its demands
on the rest of the system, so that
this bank and that at Richmond are
now the heaviest borrowers. The
total amount of interbank accom-
modation, nevertheless, show an
other decrease, and the prospects
for relatively easy money during
the autumn continue god.