Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-08

railway organizations will move in line
with employees In other industries and
that railway transportation will not
be interrupted even II wages are re-
duced. They attach most importance
to the successful Pennsylvania financing
and to the prospect that other new rail.
way obligations that are expected to
be offered in a short time will find
broad demand and that offerings will be
oversubscribed for at once after their
appearance in the market.
It IL insisted by them that too much
Importance has been given to the new
| financing by industrials and railroads
in the recent past and that. as a matter
Of fact, much Of this new financing IL
simply TO replace standing obligations
and that the amount Of new borrowings
are no more extensive than were in
! former times arranged without public
offerings and simply by the railroads
obtaining credit from the banks In
which they had accounts.
Corporations in Unfavorable Position
In connection with the securities sit.
uation there are many who are less
fnvorably impressed with the develop
mpnts which have taken place since the
first Of the year than the great ma ajority
who do not carefully study general
conditions. Some of the leading bank
CrS insist that many corporations, since
the first of the year, have found them
selves in a much less favorable fnan-
cia position than had been enjoyed
previous TO that time. According to
BrndStrcrt report on commercial con-
ditions, there we're more commercial
failures in January than at any time
on record for the first month Of the
year, except January, 1915.
This In itself. II is argued, is a fac
tor TO be considered in any prognos-
tications that may be made relative 70
the securities markets. There still are
millions of dollars tied up in so-callcd
frozen credits. and until retailers bring
prices down To n point commensurate
with the reductions by wholesalers. IL
Is regarded as unlikely that inventories
will begin moving in any considerable
volume, SO as to release funds tied up
In bank loans for the purpose of carry
ing large lines Of goods and Commodi-
ties.
Bond Issues Readily Absorbed
Much favorable comment IS caused
bv the heavy absorption Of big issues
of bonds the last week or ten days, all
being ovcrsubscribed Dealers report
a liberal buying of the securities. Since
the Offering Of some of the issues, the
price after working little above the
Subscription basis, worked back to the
initial price, this being especially the
case in the issue of Pennsylvania 6h
per cent bonds.
Most of the current interest lies in
the offerings paying liberal rate. sew
cral issues yielding around Z per cent
being especially IN demand, foreign
government bonds continuing TO find
fnirly active demand. Municipal bonds
meet with moderate demand. The
tax exempt features Of the latter class
Of bonds recommends them to an in.
fuential class of investors, and recent
issues have been distributed readily.
Anticipation that interest rates will
follow eventually the general decline
in commodity prices undoubtedly is
stimulating moro interest In offerings OF
bonds bearing high interest rates.
Western Money Market Unchanged
Reports from money markets in the
West, which have been received by local
bankers, arc not materially changed,