Evening star., 1923-01-28
TRADE CONDITIONS
HOLD MARKETS Up.
Remarkable Steadiness in
Face of Dismaying Foreign
Situation.
HOME OUTLOOK BRIGHT
New Securities Quickly Absorbed.
Money in Plenty-Public
Favoring Utilities.
BY BYRON SELLER.

SPeN'aA biepdtcn 10 lhe Star
NEW YORK, January 27.-The Sc
curities markets continue today to
exhibit remarkable steadiness in the
face Of the dismaying dispatches from
abroad. Daily 1t has become more
evident that the task which the
French have set for themselves is or
unexpected magnitude. There is no
siga of a break in the deadlock, and
meanwhile the costs mount up and
the French, not the Germans, have to
pay.
AS far as improving Frances f1nan-
cial position is concerned, the results
TO date have been disappointing, 70
put it very mildly. But neither in
London nor New York are there any
indications of alarm in financial cen
ters. 1t is true French bonds under
the combined pressure of liquidation
by investors and speculative short
selling sank to new low levels and
franc exchange, with minor rallies, is
trending downward. But the stock
market is holding steady, although
speculation is at low ebb. New Sc
curities offerings are being well alb
sorbed.
The fact seems to be that the un-
der!ying trade conditions at home are
so good that they counteract the dark
outlook abroad. It can hardly be
doubted that any turn for the better
In European affairs would be follow
ed by active speculation for the rise
In all our markets.
Trade Reports Cheerful.
still. until this turn comes-and
is the better part of valor even for
those most thoroughly convinced of
the prosperous times to come
All the trade reports are very cheer
high for the season. Commodity
prices are still rising. The whole
sale and jobbing demand is good. Re
tatlers are cautious, but show no lack
not been forgotten and there Is no
rush to stock up, regardless of price.
This is particularly evident in the
cotton goods trade. The automobile
history OF the business and are max
ing plans accordingly. Here and there
doubteT points to the increased costs
Of raw material as forecasting the
necessity of an increase in the price
OF the finished product.
Autos Mny Cost More.
The commodities the motor manu-
steel and copper-caunot continue to
advance without effect on profits un-
der the present scale of automobile
prices. Whether the ultimate con-
sumer would resist a higher retail
price for motor cars is uncertain The
strength of the American demand for
more and more automobiles is aston
tshing, even TO the most optimistic Of
producers.
The case of the truck manufacturer
Is a little different. All he has to do
! is to show that the use of his product
cuts the cost Of doing business Com
1 Nnti Iy1 h4k f-
| intense, however. and it might well
| be that under any unfavorable cir
| cumstances some of the weaker would
go to the wall.
| The political factor is not 50 much
| stressed just now. The agricultural
| representatives at Washington for the
| minute seem satisfied with taeir ef-
| forts to provide more credit 20 the
! farming population and are leaving
| the railroads alone. Sooner or later
! the attack on present rates VIII be
resumed, but at present holders OF
rail securities are having a breathing
| spell. Rail executives could we'll take
! advantage of the rest TO cultivate
good relations with their customers
! as well as their employees.
All New Issues Popular.
! Coming down to strictly investment
| matters, the outstanding feature OF
| the week was the ability Of the mar
ket to take care Of the new offerings.
!
and speculative securities are more
eagerly accepted than those of first
1 rank.
! Investors seem to be turning from
f; high grade bonds either to the second
| grade and emi-speculative issues or 10
preferred stocks. and it is not difficult
/ to sell a new issue Of common stock
which seems TO have some speculative
attraction. In this respect the con-
trast with conditions existing only a
year ago is very striking. In the rush
! to subscribe to new obligations sea-
/ soned issues both in bonds and pre-
/! ferred stocks are comparatively neg
lected, a situation which a few sflrewd
| investors are quietly taking advan-
tage Of.
I the estimation Of the investing public,
not including the fractions. OF course,
! II Is curious fact that the pressure
for reduction in rates has always borne
more heavily on street railways than on
| electric light and gas companies.
| Mystery I'm Money supply.
The telephone interests are under Are
| every now and then. but so far their
policy Of sharing their fortunes with
their customers through the sale OF
stock, preferred or otherwise, has
proved a great advantage to them
Copper and steel securities rank next to
those Of the utilities in public favor.
In both these industries there have been
combinations of q size to stimulate i'm
| agination.
The outstanding wonder of ii all is
where the money comes from. Wealthy
investors are steadily increasing their
holdings of tax-exempt bonds. The in
come tax return showed this beyond
shadow of doubt. The amount avail
able for industrial investments must be
curtailed by that much but resources
- i