Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-26
BY byron SELLERS
fSpecis. Correspondent Of The Tribunel
lCopNriGlt l2.2 BY Great Eall4 Tlihunal

.-- hI oItdL L MES l1Lbbtt3
New York, Nov. 2j.-The decline
which came when the bond market
turned downward last August and Sep
tember now seems to have run it's
course. Prices for prime issues appear
stabilized for the present at least. The
reason generally ascribed for the de-
cline was the doubt as to the future
of money rates. There is now no ex-
~pectation of any material advance in
quotations for time money.
The second factor materially to af-
feet the market. was liquidation on
the part of banks of securities bought
a year or so ago, when demand for
funds for business purposes was at a
minimum. This liquidation for a time
was very heavy and prices suffered
correspondingiy. That too, appears to
have run its course for the present.
Next came a wave of pessimism as
to the situation abroad. Doubt as to
the ability of foreign governments 10
meet their obligations was freely ex-
pressed. The decline in prices for
foreign bonds became acute. Here
too, the pressure has been lifted tenn
porariiy at least.
New Influence
This week q new influence has come
into the market foR knvestment securi-
ties. 1t is feaR ~ to the attempts
of the radical group in congress to
modify the transportation act TO the
detriment Of the railroads. The effect
has been very plain in the stock mar
ket, bu& bonds have not been exempt.
Issues SO well secured both by proper
ts value and earning power that no
conceivable decline in net income would
affect them are. of course, unchanged,
but the great majority Of second grade
and speculative issues have been in
for the same reasons that brought the
selling Of railroad stocks.
Investors look to dividends on stocks
as q margin of safety for continued
payment of interest on bonds. Most
states make dividend payments on
stocks a qualification for bonds legal
for savings banks and trusts. Any
Developments which threatens the rail
roads as a whole has a disturbing eff
feet on the holders of railroad bonds.
And even if the holder does not care
to sell he certainly is not ready TO
buy until the outlook becomes clearer.
1t is perfectly true that there is lit
lie likelihood of any adverse to rail
roads until the new congress meets.
but the discussion by the legislature
leaders of the so-called agricultural
bloc as 70 the imperative necessity
of a reduction in rates has its effect
on sentiment.
Strike Cost
Then too, the revelation as to the
enormou cost Of the strike to the
railroads has been disturbing. 1t was
n shock to many investors to hear
from the president of the Baltimore &
Ohio, hat the cost of the strike tc
that road was between $10,0OO,0 600
and $11, 100000. The usual crop OF
rtimors as to the financial condition
Of the weaker roads has also been il
evidence all the week.
Probably all the rumors we're base
less. Certainly they We're prompt.
denied in all cases where they hat
crcpf into print. But the cumulative
result was bad. Nor did figures show.
ing regular c~arloadings and genera
business improvement serve to coun.
teract the prevailing feeling. 1t mus
be remembered that all this talk about
prospective troubles for the railroads
was super-imposed on a bond market
which has been declining nor months
Now all this is entirely illogical. No,
even the radical leaders in congress