San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-21
BONDS STEADY
WITH SLIGHT
FLUCTUATIONS
Financial Markets Remain
Undisturbed by Euro
pean Clouds.
LONDON MONEY FIRM
Sterling Prices Hold as
Strong as the Rock Of
Gibraltar.
LONDON MONEY FIRM
By BYRON SELLER.

stability in Continental Europe, if any
has been made during the week, does
NOT appear on the surface. The french'
have tightened their grip on the great
German iron and steel valley oil TINS
Ruhr. The Germans continue their pol.
lev of passive resistance. Deprived OF
the great bulk of their coal supply, 1t Is
a question how long German industry
can escape disentregation. How all thls
will help France is not plain. The Bit
ish and Italian governments remain anx-
ious watchers of the portentlous strusr
Gle. And the reparations problem on
which the future of all Europe depends
is as far from settled as ever.
Rut. notwithstanding all these dark,
enine clouds, the markets OF the worlu
are undisturbed, except momentarily OF
in some particular security or commo-
dity. II is Mt once one of the most sur
nrising and interesting situations IN
financial history. 1t is true that the
unfortunate German mark has dlscoV
cred new possibilities in depreciation OF
quoted price but no one now expects
ANYTHING else of marls exchange.
London Money Not Disturbed.
Franc exchange and French bonds
have weakened under the progress OF
events. but the wonder is that the de-
cline has been so small. Sterling. ex-
change holds like the famous rock where
the British hands guard the entrance
To the Mediterranean. The London
money market which might be expected
TO be disturbed, and when half inc
catastrophes to happen are discussed
in the foreign dispatches, shows no con-
Germ.
At home stocks go up easier than they
90 down. Bonds and high grade invest
ment securities generally are heavy, put
there has been marvellous absorption
of new offerings.
Various explanations are advanced 10
account for this paradox. The most com
monty accepted is, that financial mar
! kets are forecasting and dlscountlns
some settlement of the whole European
| tangle. 1t is certain that there Is o.
| stinate faith that n solution Will be
found. And this faith expresses ltseli
| in the support of the securities mar
ket. -,
French bonds made new lows this
week. hut Mt its close it was still posi-
Bile to say that even French bonds were
easier to sell than TO buy. 1t may be,
of course. that the markets are all
wrong and that the disasters which
seem to impcnd will really occur, but
markets have an uncanny faculty OF be-
| ing right in matters like these. The
] only thing to do is to wait and see.
| The waiting ought not to be long for
| the present deadlock cannot so on IN
definitely.
May Hurt American Copper Trade.
| 1t is to be observed that there are
several possibilities in connection with
the French invasion of Germany which
are of interest to American trade, one
| of which concerns the copper industry.
| II all the German purchases of copper
are TO be cut off, the effect on the re-
viving copper market will not be small.
| If the iron and steel production of in
dustriGl Germany, on the other hand
| is to be throttled, whether directly by
French occupation or indirectly by cut.
ting off the coal supply of the rest OF
Germany, the iron and steel trade of
other countries must be stimulated ac-
cordingly.
There is always another factor than
the European situation to be taken
into account when considering the ap-
parent strength of the securities mar
ket. This is the money situation. Our
gold reserves continue to pile up, not
withstanding the efforts TO force more
gold into circulation. The reserve ratio
for the combined federal reserve system
was practically the same this week as it
was in the corresponding week of 1922.
The difference is only One-tenth of one
per cent. How far this factor is eff
fective is admittedly a matter of opin.
ion but it cannot be overlooked in any
thorough analysis of the situation.
| Ag 20 Arof1N Ga 10
Ccrned there is little change. Perhaps
the most noteworthy thing is the effect
Of rising costs of production on for
ward contracts. Eventually. rising
costs at wholesale must be translated
into rising prices at retail and how far
ultimate consumer will be willing TO go
is very doubtful. But no one seems
particularly disturbed about this just
now.
At any rate the automobile manu-
facturers are not. They go on prepar-
ing for the biggest year in the history
of the trade. Some people seem To think
that the rapidly mounting expenditures
Tor MOTOR carg are dangerous sign oil
national extravaganza. These doubtcrs
might be treasured by study of the say.
ingS banks statistics which show an in
crease in deposits for the year 1922 MS
compared with 1921 of about 81 500.
O0O,OO0. During the same time. build
ing ard loan associations increased Il
per cent in members and II per cent IL
resources. Not all Americans WASTE
: their substance.
i From stricjly investment point .
view, the facility with which the grca
Anaconda financing. the largesS indus
trial operation of its kind on record
was ACCOMPLISHED. was the outstanding
J. Cvent Of the week. 1t is all The NOR,
s noteworthy because of the doubts $,
freely expressed as to the financial ef
feet on the supply of capital for indus
trial purposes, that might be brough
a about by the turning to tax-exempt Sc
: curitics of investors of large wealth
= The income tax returns certainly she's
that more and more capital is goin
:. into state and municipal bonds to avoi
d sle heavy Surtaxes. Yet this drai
y does not show on the total amour
available for other investments.