San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-07
IN
BOND MARKET !
IS IMPROVED
Government Issues Prove
Exception to General
Tendency.
RAILS HOLD FIRM
Outlook for Railroad Com
panies Better Than in
Years.
RAILS HOLD FIRM
By BYRON SELLER.

SOPyiiSht Wy Aho Sdh Ahtohlo A<lSuts
New York, Oct. 6.@The outstand-
ing event in the security markets of
the week was the sharp, almost perpeD-
dicular, advance in stocks on Wednes-
day. Almost without warning the mar
ket turned about and there was a
scramble on the part of spectators
for the decline to cover their COM
mitments. The recovery was not sus-
tanned, however, and the speculative
pessimism. which has reigned tor the
past month or SO, regained its sway. 1t
was explained that the sudden recoy-
cry was purely psychological" and
that it had no significance as to the
long range outlook either for secure
ties or for business,
Much was made of the announce
ment that the largest cotton mill in
the world would close its department
today indefinitely as result of un-
toward business conditions. This, it
was argued, showed that increased
costs could not be passed on to the
consumer and the inference was drawn
that like action would be forced upon
the other manufacturers. On the other
side it was asserted that local cOndi-
lions as well as the geenral market
situation were influential in bringing
about the shutdown of these particu-
lar mills and that the southern manu-
facturers would continue operations
as usual.
A Disturbing Development.
1t cannot be denied that this is
disturbing development, but it must be
remembered that somewhat similar
occurrence in the building industry did
not prove permanent. Last spring
there was a suspension of building
operations in New York and SOME
other large centers, due to the pre-
vailing high labor costs. The situa-
ton then readjusted itself and work
was resumed.
About the same time there was also
a revolt against the high price of SUI
gar with threats of government action
and with an adverse effect upon the
quotations for the securities of sugar
producing companies. Sugar, however,
is back to its high price again. The
fact is that there are certain con-
sumptive needs which must be filled
and that demand may be relied upon
to reawaken as these needs again be-
come pressing. When this will prove
true in cotton goods, only time can
reveal
Aside from the news as to the cot
ton goods trade there were no fresh
arguments put out by the prophets of
reaction in securities. Stress was still
laid on extravaganza" in the buying
of automobiles, on the lack Of thrift
Of the general public and in pre-
pared statement by the head of one
brokerage house, even on the amount
of money spent on admission to prize
fights, movie theaters and on the con-
struction of golf courses. This same
authority admitted that the savings
banks had increased their deposits by
$500, 900 900 during the last year, but
alleged that much of this was con-
tributed by wage earners of foreign
birth and did not evidence any thrift
on the part of Americans as a
whole.
Bond Sentiment Improved.
If the sharp advance of Wednesday
was not followed IN there was at least
no substantial downward reaction ex-
cept that which might have been ex-
pected from the rapidity Of the rise.
1t is also important to note that SEN
timent in the bond market, when is
more truly representative of invest
ment interest, showed great improve
ment during the latter part of the
week. Exce.t for weakness in United
States government issues, which can
be accounted for on several grounds,
obligations of domestic corporations
were firm. This applies especially 10
the speculative railroad issues. 1t
looked as IL at last there was to be
some response to good earnings state
ments in the bonds if not in the
stocks.
The buying. whether for specula-
tive or investment account, and-it IS
not easy to say which was predomi-
nant-was carried on with great dis
elimination. Two or three roads, the
position of which is doubtful, were
neglected in favor of the great major
ity wheer, the outlook is better than in
years. There is still room for much
more improvement, but the change in
sentiment, slight though it may be,
was very encouraging.
Farm Conditions Improved.
Another dis, reilly heartening event
OF the week was the testimony from
well-informed sources to the improved
conditions in agriculture. Certainly
the corn farmers have no reason 10
complain about the present prices. for
their products. Proposals for legisla-
ton in aid of the farmer also as the
time for the assembly of Congress
draws near are becoming more con-