San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-23
EASE IN MONEY
. IS FEATURE Of
|. WEEK|NB0NDS
Call Funds Drop to Low.
est Point Since 1918
on Friday.
EFFECT IS IMMEDIATE
Market for Unlisted Securi-
ties Is Broadening
Out.
EFFECT IS IMMEDIATE
BY BYRON SELLER.

Copyright, 1924. by Consol. Press Assn.
New York, March 22.-The out
standing development of the week in
the financial world was the remark
able drop in the quotation for money.
Call funds on Friday on the stock
exchange fell to IL per cent, the
lowest since April "a. 1918. except
for casual loan at 2 per cent just
before the close of business on No.
vember 3. 1910. In the outside mar
ket money loaned even below the Of
ficial rate and sums could not be
placed. TO a less degree this ease
was reflected in the quotations for
time money and in the rates for bank
ers acceptances.
Several explanations were current
in Wall Street for this phenomenon.
The one most widely accepted was
that the situation was brought about
by the operations of the treasury CO.
incident with the income tax pay
ments due on March Is. On this
theory these rates were only tenn
porary and an upward reaction might
be expected by next week. Another
cause was the let up in demand OF
business upon the banks. A few
economists expressed the opinion that
conditions in the money market were
the cumulative effect of the enor-
nous surplus of gold. On this theory
easy money would be expected to con-
tinue over a long period.
Liberty Loans Affected First.
Whatever the explanation the eff
feet upon the investment market was
immediate and pronounced. 1t first
appeared in the quotations for United
States government securities. All the
Liberty loans except the tax-exempt
lbs ran up to new high levels OF
the year. The buying was understood
to come principally from banks who
found themselves forced to find some
profitable employment for their ex-
cess funds. There was eager inquiry
for high grade railroad and industrial
bonds. Quotations advanced only
fractionally in this group, but the
trend was unmistakable. Here too,
banks and financial institutions were
reported to be active on the buying
side.
Bond Prices Could Be Better.
There is room for improvement in
market price of high grade invest
ment bonds. The high point for this
year was reached. late in January
under a belated reinvestment demand.
Present quotations are still well under
that high. While it is very difficult
to trace il is true that some buying
for foreign account was responsible
for the best prices not only this year
but last. This applies only to bonds
of the highest grade. There is no
indication of any such foreign buying
at this time. Bonds which benefited
most were not those of the very high
est grade yielding around ~ 10
4 3-4 per cent, but rather those Civ
ing a return of 34 to : IA per
cent. Such bonds as New York Cen
trail 5s and Southern Railway con-
solidated IS are illustrations.
Speculative Market Is Divided.
In the speculative market a sharp
line was drawn between railroad and
utilities on the one side and indus
trials on the other. Favorable earn
ings statements. together with talk
of mergers and increases in divi-
dends stimulated speculative enthu.
siasm towards the rails. The general
expectation was that the February
monthly statements would reveal inn
procurement upon tnOSe LOT Janudt!'
The only section about which there
seemed to be doubt was the North
west. The campaign for the lease OF
the Norfolk and Western by the
Pennsylvania and speculation and to
the terms all aided in arousing in
terest in railroad securities.
As to the utilities, the feature was
the activity and interest among unlist-
ed stocks and bonds. The market for
these securities is broadening out.
This is one result of the customer
ownership campaign so vigorously car
ried.. Earnings of electric light and
power companies show steady and
gratifying increases. both in gross and
net. They have the advantage over
the railroads on an average of better
treatment by utility commissions. So
far there has been no campaign to-
reduce rates comparable with outcry
in Congress against the railroads. TheI
demand for electric light and power
! rose by leaps and bounds. In this con-
nection the announcement this week
of the formation of a super-poweri
group by ten electric power produc-
ing companies is significant.