Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-14
GOSSIP OF
THE STREET

HhOIly on the puDlIsneu etutN.iehI Al
regsrd to the details of the plan now
carry out the order of the Supreme
Gnurt TO dissolve the company. They
NOD much TO say about the various
riusscs of stock being called on for the
nnymCnt of so share before receiving
rn,,ities in the assets of the company,
and were extremely vigorous In express
Siors of opinion as to how low. they
will be able to make Reading COM
mon 60.
we're published some of these interests
predicted that Reading would be forcd
down to 20. but In the statements made
on Friday the predictions. were of even
lower levels being reached on this SELL
ing movement.
Il is matter of general understand
Ing that the statements published about
The pOints of the plan were virtually
correct. but It Is insisted by some of
those fully informed about the Reading
situation that 1t should occasion no
surprise II the plan now under consider
stion should be disapproved by the
Supreme Court and suggestions made
As to other steps which must be taken
with perhaps direct instruction us to
the course TO be pursued.
In aOmC circles it IL insisted that
when dissolution comes the Reading
general mortgage is, the Jersey Central
collateral ~ and the two classes of pre-
fcrrcd stock will be paid of at par and
that the assets Of the Reading company
will be distributed to the common
stock.
There has been some borrowing of
Reading in the stock loan market, but it
has been easily obtained for delivery.
1t has been frequently noted, son pre-
vious occasions. that Reading Is always
kept easy in the stock loan market, and
that sales of short stock are virtually
invited.
Orderly Reduction In Selling Prices
Much is said about indications of
business improvement in many indus
tries and 1t Is insisted by some that the
industrial recession tnat was reflected
in unemployment all over the country
had been intensified BY those WHO
seemed to believe that ovcrsupply has
been so extensive that there would be
10 necessity for new production for a
lons time to come.
1t is said by some of those making
study of industrial conditions that
~ matter Of fact the surplus of fin
ished product in many industrial lines
does not really amount to more than
few months average consumption,
while production has been retarded for
q far longer period and business in
many lines interrupted to period
dating back to last summer. Those
who believe in improvement attach
much Importance to the fact that wage
reductions have been accepted generally
IN good spirit and that an orderly re-
duction in selling prices can be made
without any further unsettlement of the
BUSINESS situation.
No Let.up In Bond Offerings
Within the next week, according to
prominent bankers, official announce
ment will be made of the sale Of $50
100000 of long term Chilean Govern
meDt bonds to group Of New York
banking interests. 1t is stated that the
So.called South American group is
simply waiting for confirmation of its
terms to the South American republic
before making official announcement of
the conclusion of the transaction. In
the trade. the opinion is expressed that
these bonds will go we'll with investors,
because 1t is expected that they will
carry attractive features as well us Il
substantial income return.
The S401 900 600 of one. two, three
and four year notes of the Copper Ex-
port Corporation authorized for the pur-
pose Of financing 40O, zoo. 900 pounds of
copper. which is TO be trusteed and re
moved from the market, were we'll re-
ceived in investment circles and little
difficulty was experienced in placing
them with investors. AS matter OF
fact, the demand for nearby maturing
obligations has been better than that for
longer mnturities recently. with the re-
suit that most Of the short term paper
has been taken out of the hands of
dealers and lodged in permanent quar-
ters.
Unless there is q let-up in offerings Of
new securities in the near future it is
regarded as highly probable that the
bond market will pass into a stage Of
doldrom. because it is evident that the
.arge issues which have recently been
put out have not been properly distri
hutcd, as IS evidenced by the fact that
pric"s for them, almost Immediately
after the closing Of the books and alot
ment Of the bonds. have declined to be-
low the subscription quotation.
This clearly indicates that there is an
oTersupply Of issues at this time and
while the public demand for securities
fNA'LHlAS lti b''uuSt VI NIit
peculiar circumstances obtaining. it is
not sufficient to absorb the continued
"Ntpouring Of securities with the as
Eranr" Of their being successfully lodged
II n" hands of actual investors.
Bond men fully realize this phase Of
'"r NluatiOn, but, rs yet, have failed to
TAX" Iced of the dangers incident to
oYerCr0wding the market or otherwise
there would be n cessation of new issues.
During the last week there have been
considerably more than 800, ,00O. 900 of
Jonds or notes offered for public sub
S"ripton. m amount which in ordinary
TIMES would be- looked upon as tre-
uendous.
TIE "rrime wave" il said to have
tr"Ug 1T about large increase in say
,NgS bank accounts. according to the
"adS Of these institutions. Foreigners
ar" largely in the majority in the list
"L recruits to the saving habit. Many
wa" nave 40 checking accounts and have
h"en making II practice of carrying
around in their porkets larger sums Of
money than thcv had any need Of, have
0eI3lNr alarmed at the frequency Of
""Id UPS and urc dcpositing their sur
''u" cash where II Is SAFE. before some
rhcIa. Lawn
Market Opinion
tie"Err to.-The market is 30
S"'y Professional there Is no trliina
.A"' II lA"y !" at any moment for Il
e" n@Iinys., Public interest is ut low
'on' ~ spite OF which hcnrish attacks
'~r, WIN only temporary success. The
way t"" market has resisted bad news,
.'H there has been plenty of il since
=. rN!hinatl"n of the January rnlly, is
,iH"''Sy III its favor. while spcrula-
no. .,M If thus confused by its professional