San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-28
BOND MARKET
CONTINUES To
HOLD STEADY
Exhibit Remarkable Firm
ness Despite Dismaying
Foreign News.
NEW ISSUES ABSORBED
Speculative Securities Ac-
cepted Over Those of
First Rank.
NEW ISSUES ABSORBED
Nv BYRON SELLER.

New York, Jan. 27.-The securities
markets continue today to exhibit re-
markable steadiness in the face OF the
dismaying dispatches from abroad
Daily it has become more evident that
the task which the French have set
for themselves, is of unexpected mdshi-
tude. There is no sign of a break
in the deadlock and meanwhile the
costs mount up and the. French not
the Germans, have to pay.
As far ms improving FradceS imam
cial position is concerned, the results
to date have been disappointing to put
it very mnary. But neither in London
or New York are there any indications
of alarm in financial cent"rs. IL Is
true French bonds under the 'comolneu
measure of liquidation by investors
and speculative short selling sunk 10
now low levels and franc exchange
with minor rallies, is tending GOWN
ward. But the stock market IS h"Id,
ing steady. although speculation IN al
low ebb. New securities offerings ale
being well absorbed. 49,,
Trade Conditions at Home Gom.
The fact seems to be that The under
living trade conditions at nome are 80
GOOD that they comteract the DARK
outlook abroad. 1t can hardly De
doubted that any turn for the 1C'urI
in European affairs would be followed
bv active speculation for the rise IN
all our markets.
Still until this turn comes and there
is no sign of it yet, discretion Is lhe
better part of valor even 1or 'hose
most thoroughly convinced OF the pros
porous times to come.
All the trade reports are very cheer
fuI today. Car lOadings are very hlSh
| for the season. Commodity pri :cs are
still rising. The Wholesale and job6ing
demand is good. Retailers nre cautious
Inf show no, lack Of confidence. Lhe
| lesson of 1921 has not been forgotten
| and there is no rush to stock up re-
gardlrss Of prices. =, -. H.
This is particularly evident in me
cotton goods trade. The automoDile
people expect the biggest year in me
| history of the business and are making
mans accordingly. Here and there
doubtcr noints to the increased costs
of raw materials as forecastlnS tue
necessity of an increase in the price
1
of the finished product.
American Demand Is Astonishing.
The commodities the motor manltac.
turers must use, rubber, cotton. steel
and conner, cannot continue to advance
without effect on profits under the
present scale of automobile prices;
| Whether the ultimate, consumer woum
resist n higher retail price for motor
cars is uncertain. The strength OF
the American demand for more and
more automobiles is astonishing. even
TO the most optimistic of producers
The case Of the truck manufacturer
is n little different. All he has to GO
is TO show that the use of his product
cuts the cost of doing business. Com-
netition in both these lines is very
intense. however. and it might we'll DC
that under unfavorable conditions some
of the weaker would go to the wall
The political factor is not so nucf
stressed just now. The agricultural
representatives Mt Washington FOR the
minute, seem satisfied with thelr FL,
forts to provide more credit 10 the
farming nopulation and are leaving
the railroads alone. Sooner or Later
the attack on present rates will DC
resumed, but at present holders OF ran
; securities are having a breathing srcI,
Rail executives could well take al
vantage of the rest to cultivate gooG
relations with their customers as wei
as their employees.
! Market Easily AbsOrbs Offerings.
Coming down to strictly lnvestmen
| matters. the outstanding feature OF tn
! | week was the ability of the market e
Z take care of the new offerings. 1t i
significant that second grade am
speculative securities nre more eagerl.
accepted than those of first rank.
. Investors seem to be turning IRON
5 high grade bonds either to the secon'
: grade and semi-spcculative issues or I
: preferred stocks and it is not difficult
! 10 sell a new issue of common stoc
( which seems to have some speculativ
s attraction. In this respect. the cor
trast with conditions existing only
/, year ago is very striking. In the Ens
Z 70 subscribe tn new obligations, season
& cd issues both in bonds and prcferre
y stocks are comparatively neglected.
= situation which a few shrewd investor
= are ouiptlv taking advantage OF.
4 Utilities Hold First Place.
i The utilities still hold first plaC
u in the estimation Of the investing pui
lie. not including the fractions
!. course. IT is n curious fact that II
y pressure for reduction in rates has q
ways borne more heavily in street raj
ways than on electric light and 81
comnanies.
The telephone interests are undi
m fire every now and then. but 80 Il
rs. their policy Of sharing their forum
with their customers through toe sa
of stock. preferred or otherwise, h
ia proved a great advantage to them. Go
pcr and steel securities rank next
III those Of the utilities in public favc
ar In both these industries there ha
nd been combinations of size TO stimula
tE' the Imagination.
The outstanding wonder OF It all