Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-04-13
INVESTMENT ISSUES
IN LEADING POSITION
Bond Dealers and Traders Unite In.
Forecast of Favorable Re-
ports.
MONEY TO CONTINUE EASY
Problem Nevertheless in General
Business Outlook.
MONEY TO CONTINUE EASY
BY GEORGE II. HUGHES.

BY GEORGE Il. HUGHES.
Special Dispatch 10 The Star.
NEW YORK, April 12-whatever
the immediate future of stocks and
of speculative securities-and as TO
this opinion IN Wall street is divided.
with the prepondera of belief that
lower prices are to be expected-ths
outlook for bonds and investments is
considered very promising.
Bond dealers and traders are al
most a unit in their expressions OF
confidence. This is, as a. matter of
fact the logical view. Money is easy
and will probably continue SO. Amy
recession in business would simply
increase the supply Of funds avail
able for investment Therefore, all
the Indications point for a good mar
ket in bonds
Problem Beconaes DimeuIt.
When any attempt Is made to be
more specific the problem is not 50
easy. The market itself so far has
given little indication Of any change
in the trend High grade railroad
issues of the savings bank class arc
selling below their high of the year
and still further below the high OF
lS13. The return to the investor is
even now very low. 1t is hard to see
why it should go any lower. Tn
nigh price for bonds of this grade
and Consequently the extreme low OF
return last year, was made under the
count
When the situation abroad appeared
mos1 doubtful there was an influx OF
buying orders for first MORTGAGE rail
road BONDS of the grade of Atchison
general Is from the other side mar.
ticularly from Amsterdam A eond
Zeal Of this buying was believed to
De Tor German interesta anxious for
SAFETY above other considerations. ii
does not appear probable that tflere
WIN De 4 repetition Of this sort q
buying.
Rails in Similar Position.
More or less the same situation ex
r ISL. In the market for second grade
rams, mlnue the foreign factor. The
Y1eid is, of course, a little higher thar
Win the hrst- grade rails. but Hheth4J-
II 10 hlgh enough to tempt aggrexxsiy.
new buyIng remains to be seen. With
t ms Srdne also present prices are be
the high of 1923. Speculative rail
roan ponds fuctuate with the earn
lnss or the roads of which they arr
the obligations There has been al
ready this year a sharp advance in
THESE bonds, but obviously this baG
nothing to DO with the monev sitna-
Llon. nor IS it what is meant when !.
pFtter bond market is predicted
" nat Is true of speculative rails i
even more true of Industrial bonds.
Iooaoiy the best argument can b.,
mace Tor the utilities. Althoupi,
these, too, are below the high 81 H.
year, the buying Of late has beer
more impressive than anywhere else
IN the list. The electric light anS
po~er companies report steady in
N in -.
net, and there is even some improve
ment IN a few Of the fractions sea
soned bonds of such utilities secured
on properties at pre-war valuations
are IN a position to benefit from anv
general advance in the bond market
summing it up, the situation is that.
While general confidence is expressed
IN the future of the bond market
there Is no agreement as to just what
class or grade of bonrS, unless i: be
the utlities, are the most attractive.
Foreign Bonds Separate FHcfor.
Foreign bonds must be considered
separately. Yields on the dollar is
sues of European nations are alb
surdly high, with the possible excep-
ton of United Kingdom obligations
French bonds, national. provincial
ana municipal, are obtainable to re-
turn from to per cent This is
not taking into consideration the pro
visions whereby certain of these is
sues are redeemable for sinking fund
purposes at premium. Belgium
bonds yield from IN to over per
cent also, without allowing for re
demption possibilities Austrian Is
guaranteed severally by the various
powers, return more than per cent
So do Czechosioyak IS, although this
new republic has conducted Its
| finances with skill and conservatism
Well over per cent is to be had
on the national and municipal obi
cations of the countries of northern
Europe neutral in the late war
These high yields are primarily du,
to doubt as to the political outlook
It may be that this has been cleared
| in part at least, by the Dawes com
mission report. There are, however.
| other factors. The average American
investor is very tinid with regard to,
anything foreign. 1t is not so III
London. Over there, with the sam
doubt as to the political outlook, for
[ eign securities bring a higher pric-
| than here in America.
View of the Observers.
Some shrewd observers expect tha,
sooner or later the attraction of the
large return on foreign bonds vii.
outweigh the reluctance to take Il
foreign risk, which now has such q
! restraining influence on the Ameri-
can market for these securities A.
any rate, American buyers of foreign
bonds at present prices do not ha@f
! to take into account either the money
I situation or the prospects Of domeSti.
business