Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-25
LIBERTY BONDS.
FOREIGN EXCHANGE
SLIGHTLY EASIER
BY STUART p, WEST.

NEW YORK, January rs Especially
Taking the financial situation as
whole, there was much less of interest
happening today than there was on
preceding days. Yesterdays sensa-
tional rise in French exchange had
evidently been excessive and today
tnere came sharp reaction. This
was technical market movement, &C
corning to all indications, and it did
not reflect any lessening of the hope
which has been the basis for the re-
cent Improvement in the Paris check,
that the German reparations question
Will be satisfactorily settled following
the conference of premiers that is now
Sterling exchange later in the day
moved sympathetically with the rate
on Paris. but at the outset it had
broken through the $3.50 level-had. in
TACT got up as hi gh as 1881. This
was important, as il refuted the view
freely expressed that the recovery in
sterling had reached it's limit.
1t was noteworthy that while the
drafts on London were making their
new high for the current movement the
premium on the dollar at the Canadian
centers came down to the lowest it has
stood at in long while, namely 13k
per cent.
In the security markets the most
notable incident of the day was the
speedy sale of the 10000, 900 American
Agricultural Chemical bonds. This was
a particularly interesting test. not be-
cause there was the slightest question
about the high-grade character Of this
Offering, but because in the new
financing of the last few months in
dustrial issues have not been as readily
taken as those of railroads and foreign
governments
The prompt success of this indus
trial notation is only another proof
out OF many that despite the very
large aggregate of new capital issues
put out within the last eight months
the investment demand is not slack
ening, but, on the contrary, is stronger
than IL mas been at any time. In the
general bond list, barring a slight
further advance in liberties. the up-
ward tendency was not continued
1t looks as if investment bonds in
the main have reached about their
limit or present advance; that is, the
longer term issues where the yield
has ceased to be very tempting Re-
sumption of the advance will wait
upon a further reduction in money
rates.
The street was divided in it's opinion
of Gov. Millers message to the New
York state Legislature on the trac-
tion problem. The first impulse was
to buy, and both stocks and bonds
of the various New York city lines
moved forward quickly about a point
on the average. These figures reach
ed within the first few minutes of
trading proved to be the high, and
later there was a reaction which took
| away part Of the gain. On the one
hand the message seemed to point the
was to an Scent fare more strongly
than had been expected.
On the other hand there were two
adverse points to be considered. The
| first was the very good chance that
| through a combination of New York
| city republicans with the democrats
any attempt TO put through the gov
| ernors program at the present ses-
| sion would be defeated. The second
| was the unpleasant hint in the mes
sage it3lf that if unified system
| were formed out Of the different trac-
| ton lines and an increased fare al
| lowed 1t would be prelude to mu-
nicipal ownership.