Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-30
BY r SELLERS
Special Correspondent Of TIE Great Falls 7
Copyright. 1929. by The Great Falls TTib

opocfai CORRESPONDENT OF ne treat ans iFtDuHe.
Copyright. 1922. by The Great Falls Tribune
New York, Oct. 29.-The bond mar
ket for the week was one of continuous
reaction. The outstanding feature was
the weakness in the United States gov
eminent issues and notably the new
%refunding AIS. Declining quotations
for bonds the previous week were gem
orally explained as necessary read
juStment to the yield of the new gov
eminent loan. That explanation will
not be sufficient to account for lower
prices for the new issue itself. In fact
there are difficulties without any ex-
PLANTATION.
The decline in the new issue is due
TO the same causes that unfavorably af-
fected the outstanding loans. 1t should
be borne in mind that the average bond
quotation has been declining for over
n month before the new government
financing was advanced.
Bonds Less Than in 1918
Some attention has been given this
week to the effect on bond prices Of
the advance in commodities. One large
financial institution for its own infor-
nation made q careful analysis of the
average price of grade Investment Sc
c~urities today compared with the aver
age for the same securities in 1913. Elk
pressed in dollars the average nine
years ago was higher than the average
today. But when account is taken Of
the effect of income tax plus the higher
level for commodities it vas discovered
that in reality at the high of 3
bonds were more expensive than in
1913.
Authorities believe that at the pres
ent level the decline has discounted
both the rise in commodities and the
outlook for higher charges for money.
Some large blocks of bonds have been
taken around the present levels. Pur-
chasers. however, are particular both
about the issue and the price. Other
authorities equally well informed eX-
press the opinion that the reaction will
20 farther. Both agree that the specu-
lative support which has been so prom
inent in the bond market for more than
a year has been withdrawn.
Rail Earnings Disappointing
As to the business situation. the un-
favorable features emphasized this
week were two-first, disappointing
railroad earnings for September; sec
ond, signs Of impending labor short
age. President Grace of the Bethlehem
Steel corporation called attention to
the latter condition. According to
Grace. this is d very serious matter IN
the steel industry curtailing operations
and delaying construction work. The
situation he attributes to the immigra-
ton laws.
Earning statements show that the
strike was more disasterous than had
been generally believed, in the case of
n certain number of roads at any. rate.
Much better things are promised IN the
October reports. but meanwhile the fig
ures make unpleasant reading.
Outside of gasoline. copper and a
few other commodities price trends are
upward, notably so in the case of
wheat, cotton, rubber and sugar.
Foreign bonds. in response to the
acute weakness in all the continental
exchanges. were in disfavor all week.
AS was to nave been expected, French
and Belgian issues suffered most.
No one seriously believes there 10
any question as to the investment rat
ing Of French government securities.
The price of French securities. with the
long and honorable record of the peo-
pie and government of rance behind
them. is eloquent testimnoy to the IL
n~ancisl disorder in to which the wal
plunged oil continental Europe.