San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-16
NOTABLE WEEK
: IS CLOSED IN
MONEYMARKET:
Improvement in French
Bonds One Of Many
Features.
RAILS OUTLOOK GOOD
Record Carloadings Ex-
pected to Be Translated
Into Earnings.
RAILS OUTLOOK GOOD
BY BYRON SELLER.

Copyright, 1924. by Consol. Press Assn.
New York, March 15.-From an in
vestment standpoint, the week has
been notable foE three developments.
First was the establishing in Amer
lea of credit on behalf of the Bank
| of France, the immediate purpose of
which was to support franc exchange.
| The second was the declaration by
the directors of the Southern Rail-
way of dividend on the common
| stock and the third was the large
Over-subscription of the United States
| Treasury's offering of certificates of
Indebtedness on 4 per cent basis.
While the granting of the credit
| to France was of immediate effect
only upon the exchanges, it has a
vital bearing on the investment sit
uatiOn in that it strengthens con-
tidence in the restoration of French
finances TO a solid foundation.
With the reparations problem ap-
| parently insoluble and the French
government making up budget deficits
by continued borrowing from its own
people, it was natural that there
should be hesitation about the buying
Of all French securities, and that this
hesitation would affect sympathetical-
ly the market quotations for other
European obligations. In no other
way is it possible TO explain the ex-
tremely high return afforded by for
eign bonds at present market prices.
French Bonds Yielding More.
For example French bonds have
been selling in this market to yield
anywhere from s IA to Q IL per
cent, the higher return on obligations
of the French municipalities and
provinces. The direct obligations of
the republic demanded better price,
because the credit of the nation as
whole is higher than that of any
part and because large sinking fund
was available to support the French
government dollar bonds. 1t is true
that there was no such weakness in
the French bonds as there was in the
French exchanges, but they did have
some sympathetic decline. Now if it
proves to be the case taat confidence
is restored in Fre1scl securities, the
benefit ought to extend TO foreign
bonds generally and so make Foreign
financing once more possible in this
country.
Good Outlook For Rails.
The placing of Southern Railway
common stock on an annual 5 per
cent basis is likewise important to
those interested in railway stocks in
general as well as in the more specula-
tive railroad bonds. 1t can hardly
be supposed that the Southern Rail-
way board would have taken the
action they did unless they believed
the railway situation in general to
have an improving outlook. Here. too
it is likely that the confidence born
of this action will extend throughout
the railway list.
In his comment upon the dividend
declaration, the president of the
Southern Railway expressed the hope
that the stock on dividend basis
would attract investors in the terri
tory served by the company. Such
distribution is a kind of insurance
against political attack. This prin-
ciple has been acted upon to their
profit by managers of the public
utility corporations.
New Season Record in CarlOading.
One other point should not be over
looked in considering the railroad sit
uation. That is the record carload
ings. For the week ending March
1 a new high record for tile season
in the loading of revenue freight was
established. The total for the week
was 94J.049 cars, exceeding by a
considerable margin the loading record
for any one week in any January,
February or March. 1t is reasonable \
to expect that these loadings will \
eventually be translated into earnings
increases although January state
ments were disappointing in this re-
spect. The February statements, due
about the Goth or 25th of the month,
are awaited with great interest.
Treasury Loans Over-Subscribed.
AS to the offering of Treasury GER
tificates, Wall Street was not pre-
pared for per cent rate. it had
anticipated the coupon would be
4 IL per cent. Nevertheless the Of
fering was 30 per cent over-subscrib-
ed. This is testimony convincing and (
conclusive to the ease in the money I
market. The report made public this
week showed n gain in gold reserves (
of more than S13,000.000, while the
reserves ratio remained practically at
the high point. In the face ofthese
figures any substantial reaction in
the market price of investment securi-
ties seems improbable.
Meanwhile investment bankers have
an important problem in the ruling \
of the Interstate Commerce Commits
sion on the application of the Chicago
Union Station company to selling Il
their new bond issue. The commits
sion makes it a condition in approx
ing this application that the bonds
be sold TO the highest bidder after
public advertisement for public bids. |,