Evening star., 1922-12-24
MUNICIPAL BONDS
ARE>MOST ACTIVE
Other Issues Display Fewer
Changes in Prices Dur
ing Week.
new ONES WELL TAKEN
More Conservative Investments
Are Now, Leading in
Demand.
New ONES WELL TAKEN
BY BYRON SELLER.

Special Dispatch to The Star.
NEW YORK, December 23.--In ac
cord with the holiday spirit NOR
cheerful feeling pervades the f1nan
cial and commercial world today
Fundamental conditions remain abou
the same, but faith is stronger, ant
faith is the basis Of all credit.
All the week there have been con
fusing and contradictory reports
about what was to be done to saw
Europe. First, a loan was to be made
| to Germany. That was denied. Mr.
| Lamont explained that under the con
4 ditions American investors would no
1 buy German securities. Then Amer
| ica was to act as referee in the repa'
| rations dispute. This. too. Secretnr!
! Hughes denied. Finally. Senator
! Borah. long chief of the isolationists
proposed that the President invite
the nations of the world to confer
ence to consider the economic prob
lens and arrive at an understanding
! that would restore international
trade.
The fate Of this proposal remains
to be seen. but out of all the talk
confidence grows that some way
somehow. something will be done
toward removing the one great OBJ
stacle which stands in the way of
continuing worldwide prosperity.
Lawmakers Study Problems.
Washington is busy with many
schemes to aid the farmer. The doc
tors are not agreed as to the remedy.
but all are sure that some sort Of
treatment is required. Some of the
congressional agriculturists insist
the farmers need more credit. Others
say they must have lower railroad
rates. Meanwhile there is slow but
steady improvement in the price of
farm products.
World wheat requirements are said
to be larger than was expected early
In the season. Italy. Germany and
France must import bread grains.
And nothing removes pessimism fast
er than rising prices for the COM
moditieS the pessmist has to sell.
So even about the agricultural situa-
tion more hopeful views are ex-
pressed.
There remains the problem of the
railroads. In the middle vest rail
executes are apologizing for lack of
cars to carry grain: In the east they
are apologizing for lack Of locomo-
ties to pull coal trains. IN the west
the trouble is ascribed to too much
government regulation depressing
the credit OF the railroads and so
hampering their supplying them
selves with adequate equipment. In
the east the trouble is due to the
cumulative effects of the shopmen's S
strike. although this is not so readily
admitted. 1t becomes more and more
evident every day. nevertheless. that
this strike was far more serious than
the general public ever understood
Rail EarninEs Improve.
Also there are continual rumblings
from Washington as to what the next
Congress will do to the TRANSPORTATION
act. But against all this, traffic. as evil
denced by carloadings, particularly of
merchandise. keeps up remarkably we'll
ings reports. now beginning to appear,
are expected to make much more pleas
ant reading than did those Of October.
The Southern Pacific's statement Is an
example. And so even about the rail-
roads there are silver Innings to the
clouds.
The stock market has been more ready
70 sense this apparent improvement in
the outlook than the bond market.
Spectators are more easily moved by
.ner feelings than investors. Bond
prices have remained about stationary,
but at least they have not declined eS-
cept In the case Of a few railroads about
the future Of which there is uncer-
tainty.
The slow and persistent advance in
the market quotations for Liberty
bonds has been very impressive. More
Or less other high grade securities have
shared this improvement New issues.
when they were at all attractive, have
gone very well, and some of the older
issues have enjoyed substantial recoy.
cry from their low points. Traders look
Iorward to tho January reinyestment
demand with confidence.
Municipal Bonds Active.
The week has been particularly pleas.
mt mt to the dealers in municipal bonds.
plan to prohibit further issue Of fax
exempt securities would 60 through or
% some other reason the demand for
municipal bonds has been very strong
some sharp price advances have result.
"a: Inc TAX exempt 81 per cent Lib. !
'rty bonds we're also we'll bought.
Copyright. 1927