San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-08-12
PRICE CHANGES
/. IRREGULAR ON.
BOND make l
High Grade investment
Securities in Good
Demand.
FRANCS AT NEW LOW
Anxiety Over Foreign Sit
uation Evident in
America.
FRANCS. AT NEW LOW
BY BYRON SELLER.

Copyright, by The San Antonio Light
New York. Aug. 11.-Due to tn,
suspension of business entirely on Fri
day and partially on Wednesday
trading in the securities markets was
ON a small scale this week and til.
changes were irregular and confessed
There were, however, two or three sig
nificant movements, which, if sus
tanned, may throw some light upon thu
future.
One was the demand for the very
highest type of investment BOMBS ana
the other was the discriminate;
shown in the stock market between
the shares of those corporations in III
thoroughly sound position and thoscI
of organizations where the OUTLOOK
is more doubtful. In "bull market"
little such discrimination is shown .
Under the enthusiasm of the buying
stocks for the most part move 10.
gether without much attention being
paid to relative values. In the SAINT
way in "bear market" the trend is
downward and good issues suffer
with the bad. Neither of these condi
tons prevailed this weeG.
High Grade Bonds Strong.
The strength in the high grade
bonds was marked. This does not mean
that the advances were large. A gainl
of point in q bond which is selling
TO return only little more than al
Liberty is large. Even fractional gains
sometime are important as forecasting
investment tendencies.
A study OF the range of bond quota
tions this year TO date shows that the
gilt edged issues were at the low IrY5
the spring about when stocks we.eI
selling at the high. Since March. how
ever. and while the stock market was
turning downward, these bonds LayeI
very slowly and almest without notice
been creeping upward. This week the
progress was pronounced.
Atchison general As may be takenl
as the type of this class Of bond. tn
PROBABLY the premier railroad secr3HN
The Atchison is among the most pres
porous of all American railroads and
its general per cent bonds of 1895
are secured by irst lien mortgages upon
some of the most important mileage
in the country. There is no room or
the slightest doubt as to its quality.
1t liz very interesting then that these
bonds should have made new high
record for the year on Thursday and
that purchases in comparatively small
amounts should have been sufficient TO
cause this advance. In a less degree
other bonds of that grade have shared
in the improvement.
Buying May Be Foreign.
Now it is impossible to say with
any degree of certainty from just what
source buying of this leind comes. Or
dinarily it is banks and insurance.
companies which invest in this class
of securities. Due to the income tax
private investors generally demand IA
higher yield. 1t might be that with
smaller demands for money for strict
ly commercial purposes banks with
surplus funds have turned to bonds.
But there was another suggestion ms
to the reason for the strength in
the high grade bonds this week.
This was that the buying was cont
ing from aboard and possibly from
German sources. With the mark in
flation reaching such fantastic heights
that million more or less to the dol
lar is hardly worth counting. it woili
be very natural for German capital
to seek refuge in securities. about the
intrinsic strength ot which there could
be no question. This explanation is
plausible.
Certainly conditions on the other
side have shown few signs of improve
ment.
Business Outlook Favorable.
The French francs have made
low record for all time. So have the
Belgian francs. There is grave anx-
iety in Great Britain and even here in
America. but it is reasonable to sup
posed that our own domestic conditions
will continue TO govern business here.
This makes NIL the more Interesting
the discrimination shown in the stool,
market. Stocks Of northwestern roads
have displayed further weakness m
the theory that the plight of the
wheat farmer will react upon the pros-
perity of the whole region served. On
the other hand securities Of the an
thracite carriers have been in favor
OF the theory that the Washington
will intervene to prevent a
strike. That being the case there has
been active speculation in both the
bonds and stocks of the Erie which
has been reporting astonishingly good
earnings.
Among the industrials favor has
been shown the shares of the ele~-
trical manufacturing companies while
stockS of corporations interested IN
have been reacting until in
some cases new low quotations have
been reached.
Generally speaking the business out
look is not unfavorable and the pros
meet is for reasonable prosperity. Con-
fidence in President Coolidge is almost
Carioadinrs continue at rec
ord figures. Unemployment is at RI
minimum and the nervousness over the
political situation as affecting the
railroads has abated. for the present nc
least.
Much Coff0r picLaI