San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-09
Pressure on Banks to EN-
ploy Their Surplus
Funds Continues.
RAILS ATTRACTIVE
Propose to Admit Public
Utility Bonds to
Legal Class.
Nv BYRON SELLER


New York, March S.-Despite all
the uncertainties as to tax and bonus
legislation the investment market as
the week ends manifests remarkable
steadiness.. In the controversy over
just what plan shall be adopted for
tax revision, whether the Mellon rates
or some compromise is worked out, it
seems reasonably certain that relief
from the present scale will be given.
And even if this relief is not as large
as might be wished for, it ought to
be substantial enough to improve the
demand for securities for sound enter
prises. Nor does there seem to be any
reason for concern over bonus legisla-
ton until the form it will take be-
comes more evident.
1t is in the United States govern
ment bond list that an adverse effect
of bonus bill is to be most feared.
And even this depends upon the method
of financing. Liberties, therefore,
have been slightly reactionary all the
week, but there is always the potential
support of buying for the account OF
| the British government to reckon with.
This support is not likely to advance
quotations for government DUnus so
| much as to hold them around the
present level. The interest of the
British is founded upon the privilege
they have of paying installments on
their debt to the United States in
| Liberties at par, and so the nearer the
price goes to par, the less the in
| centive to buy them for this purpose.
Short Term Securities Sell.
Meanwhile the pressure upon the
banks to employ their surplus funds
continues. There has been especially
active buying this week of all desirable
short term bonds and notes. There
has been less disposition to take long
| term maturities, but here the tone mas
been better. Demand is not so much
for the very highest as it is for Sc
curities yielding around IA per cent
and still of undoubted merit. The
large backlog of money available for
investment is the real strength OF the
investment market. In this respect
there has been no change for the past
two months.
An additional source of strength
very recently has been the letup in
the output of new securities. How
long will it be before there are large
additional offerings cannot be pre-
dicted. Bankers are watching the mar
ket closely in order to select favor
able time. The price of new offerings
also is being carefully considered.
There have been too many occasions
when reports of heavy over-subscrip-
tons have been followed by sharp
breaks in the quotations on the disso-
luton Of the syndicate, to encourage
any extravagant ideas as to the fig
ure at which a new security can be
marketed. This has been notably the
case with certain foreign bonds. In
consequence, investors have been IN
clined to hold off until the prices
become stabilized.
To Make Public Utilities LegnL
A good deal of interest is taken in
the movement to make certain public
utility bonds legal investments Aur
savings banks in this state. The rule
in New York up to now has been to
allow savings banks to buy only gov
eminent and state bonds and certain
municipals and first mortgage rails
where dividends have been maintained
on the stock at a specified rate for a
specified period. The nractice of other
states. narticnIarlv In Tho West hos
been more liberal in this resnect No a
all bond men arc agreed os 70 tbs
advisabilitv Of tbe Chance hut tbe
arguments against n ore not rorr oonl
vinc;ng One Of tbe nh;oc,;on. ba,
been that The tenc;blo nronartr rn" mus
which te1anhona hords ~ upoa
Is NOT eoraI 10 that he'll nf ra;IuaeJ
bonds Tbe great strornth e a.
telenbone comnon;os tha n,st,,. 81.
ernanS;n, danIand Co. .Io;. -n;a,
and tbo;7 donnns+rotod stah;y;t 80
earning mower ore AZ host o .ns ..
20 his nb;oot;or NJ III, VIZ
annears wIr t;r.t w ,a,,u iedsoi'
~ nrosn,ro,s aIo,tn; uon9
nove- cnmn.n,. shoviJ ~ anI
pc b;ah rat;nr s na .ta no' Ho Iusu
os annai f;none;,1 ..r.l id pnas
- Ia. e'iens'u' tNate