Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-07-08
LOCALS STOOD Up
REMARKABLY WELL
Bond Men Attach Significance
to the Weeks Activity in
Government Issues

Considering the surrounding unset
/ fling clements. the local stocks stood up
well in today's market Trading was
fairly active for a midsummer session
and was we'll distributed. The general
| price movement was irregular. with
about an equal division Of fractional
gains and declines. Pennsylvania Rail-
road continued one of the strongest
| spots. although shaded near the closing
under the best price of the week. The
street railway shares were all firm on
small dealings. +. II. 7. rallying 10
33as. while Philadelphia Traction
moved up a - point to 66; Union Trac.-
tiOn remained unchanged nt 40. I.
q. |. dropred back a - to 81, hut the
Philadelphia Electric issues remained
firm. Erill preferred moved up 11a
points on small transactions. American
Stores closed at 1211a, the top price
of the week.
Students Of market conditions attach
great deal of significance to strength
and renewed activity Of the Liberty
Bonds and other Government war is-
sues. 1t is generally accepted as re-
liable sign Of a continued upward trend
in bond values and also a prolonged
period Of cheap money. There IS. how
ever, quite n diversity of opinion in
financial circles as TO the latter condi-
tion. Some express the belief Of mini
mum interest rates already having been
seen and expect sitter rates after the
crop moving season sets in. Money for
short term maturities Is obtainabe at
! and AZ per cent. but II is understood
very few loaning institutions are dis
posed 10 put out much money over the
wear end under 4le per cent. In fact.
are openly dscouraging six months
loans.
II the theory Of cheap money IL real
lied ard money becomes actually drug.
az has been predicted there is a like
lihOod some observers say. of there
being veritable food Of refnancing on
the part of all classes of corporations
which last year were compelled to pay
cxorbitant rates for imperative needs.
There are comparatively few industrial
and railroad maturities to be cared for
during the last half of the current cal
endar year, which would leave an open
field for the putting out of new issues
Mt much lower rate. especially where
last years financing was done in short
term notes.
Some few weeks ago II was predicted
by several well known bond experts of
the overflow demand from investors
reaching the better grade of railroad
and industrial stocks. Such buying has
appeared in n number Of the seasoned
dividend paying rails and among the
industrial preferred stocks. Concrete
evidence of which is given in the steady
accumulation of Pennsylvania Railroad.
In this particular case there is the adj
ditional incentive of the assured res
toration Of the old 6 per cent dividend
rate. With that rate restored. the cur
rent price would give an income yield
of approximately per cent. New York
Central Is another instance where the
expectation of an increase in the divi.
dcnd rate to 6 per cent basis promises
n correspondingly attractive income
yield. The better class of the railroad
stocks are growing in favor because of
widespread recognition that the coun
try's transportation industry has left
the worst troubles behind and. barring
some unforeseen catastrophe. existing
dividends are relatively safe.