San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-13
Dealers Think a Recession
in Business Would
Only Help Market.
UTILITIES ARE FIRM
Hard to Agree as to What
Class Of Issues Is Most
Attractive.
BY BYRON SELLER.

Copyright, 1854. BY Consoi. Press Assn.
New York, April 12.-Whatever the
immediate future of stocks and OF
speculative securities Is, the outlook
for bonds and investments IL consid-
cred promising.
Bond dealers and traders are al
most unit in their expressions Of
confidence. Money is easy, and
probably will continue 90. Any re-
cession in business would simply i'm
crease the funds available for invest
ment. Therefore all the indications
point for good market.
When any attempt Is made to be
more specific the problem il not 10
easy. The market itself has given
little indication of any change in the
trend. High grade rails Of the say
ings bank class are selling below their
high of the year and still further be-
low the high OF 1923. The return
to the investor is low. 1t is hard to
see why it should 20 any lower.
Foreign Situation Is Faetor.
When the situation abroad appeared
most doubtful there was an influx OF
buying orders for first mortgage rail-
road bonds of the grade Of Atchison
general As from the other side, par
ticularly from Amsterdam. A good
deal Of this buying was believed to be
for German interests. 1t does not
appear probable that there will be a
repetition Of this buying.
More or less. the same situation
exists in the market for second grade
rails, minus the foreign factor. With
this grade present prices are below
the high of the present year and be-
low the high of 1923. Speculative
bonds fluctuate with the earfinss OF
the roads where they are the oblisa-
tons. There has been already this
year n sharp advance in these bonds,
but obviously this had nothing to do
with the money situation nor is what
is meant when better bond market
is predicted. What is true of specu-
lntive rails is even more true of in
dustrial bonds.
Public Utilities Impressive.
Probably the best argument can be
made for utilities. Although these TOO
are below the high Of the year. the
buying of late has been more impress
sive than anywhere else in the list.
The electric light and power COM
panies report steady increases in earn
ings, both gross and net. and there
is even some improvement in few
of the fractions. Seasoned bonds OF
such utilities secured on properties
at pre.war valuations are in a posi-
ton to benefit from any general adj
vance in bonds. Summing 1t up, the
situation is that, while, general con.
fidence is expressed in the future or
the bond market, there is no asree-
ment as to Just what class or grade
of bonds. unless 1t be the utilities, are
the most attractive.
Foreign Securities High.
Foreign bonds must be considered
sepaartely. Yields on the dollar is
sues of. European nations are absurd
" high with the possible exception
Of United Kingdom obligations:
French bonds, national. provincial
and municipal are obtainable to re-
turn from s to y per cent. Belgium
bonds Weld fro0,7 IL to over s per
cent without aGbving for redemption
possibilities. Austrian 70 guaranteed
severally by the various powers re-
turn more than s per cent. 80 do
Czechosloyakia SIS. Well over Q per
cent is to be had On the national ana
municipal obligations Of the countries
of Northern Europe neutral in the
late war.
These high Yields are primarily du<
10 doubt as to the political outioon
1t may be that this has been cleared
in part. by the Dawes commission re-
mort. The average American investor
is very timid with regard to anything
foreign. 1t is not so in London
Oyer there, with the same doubt as
to the political outlook. foreign securi-
ties bring higher price than, in Amer
loo