San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-20
Acceptance Of Dawes Re-
port and japanese Ex-
clusion Factors.
FRENCH ISSUES FIRM
Tone Of Market for Domes.
tic Investment Securi-
ties Improves.
BY BYRON SELLER

Copyright. 1924. by Consol. Press Assn.
New York, April 19.-Foreign af-
fairs were the predominating influence
in the investment markets of the week.
There were two outstanding develop.
ments. One was the unexpectedly
quick acquiscence in the Dawes ON
mission report of both France and
Great Britain on the one side and
velopment was the action of Con-
gress on the immigration bill and the
consequent friction with Japan. This
made an unfavorable impression, but
the effect was confined to the market
for the new japanese loan.
1t was an unfortunate coincidence
that the emphatic expression OF re-
sentiment on the part of the Senate
against the tone of the Japanese am
bassador's protest should have come
on the same day that the syndicate
which offered the Japanese bonds was
dissolved. These japanese bonds were
Offered in February. simultaneously in
London and New York. The most
prominent bankers in both countries
participated in the underwriting. The
American issue carrying 6 IL per
cent coupon was floated to the
amount of S150,000,000 and the
British issue carrying 6 per cent
coupon amounted to 25,000,0 600 pounds.
The offering was well received in
| both countries. The break in the
quotation on this side at least was
probably due TO the political develop
ments.
French Securities Strong.
Against this incident may be set
the strength and activity 'in French
bonds. New high quotations for the
year were reached for both the direct
obligations of the French reprolic. and
for those of French cities and prov
inces. 1t must not be assumed that
there was any rush of investors to
buy French securities. That. il it
comes, will be a matter of time. On
the other hand there was bo longer
pressure against the market By tinid
holders, and traders were quick to sec
/ the possibilities of speculative nppre-
citation. The improvement did not eN-
tend to any material degree TO Euro
pean dollar bonds in general, but
such extension would be logical to OK
pect provided no hitch occurs in the
negotiations over the Dawes report.
Meanwhile the tone of the market
for domestic investment securities
showed great improvement as the week
ended. The most significant happen
ing was the upturn of United States
government loans, carrying the treas
ury 4 las and some of the older
Liberty 4 las to new high records for
A. H. t,r,a tha ID
mand for the high grade rails became
much more vigorous. 1t looked as
though at last the great surplus of in
vestment fund was making itself felt.
New issues, too, began to move more
easily.
Utilities Leading Industrials.
Public utilities were still favored
over industrials or even railroads. A
study of the band averages shows that
the public utilities are selling closer
to the high Of the year than the in
dustrials or either the second or the
first grade rails. No earnings state
ments make better showings then do
those of the utilities. Regulation OF
the public utilities is not feared BY
investors. Moreover, so far. while car
loadings and gross earnings of the
railroads are down from the peak,
there is no such decline in the buEs'
ness of the utilities, especially cf
electric light and power companies.
This is not TO say that sentiment to-
ward the rails is unfavorable. The
general expectation is that the March
returns, the first of which will be
published the coming week. will re-
veal economies in operation which
will more than Offset any small de-
crease in gross earnings.
Industrials Depend on Business
The outlook for industrial obliga-
tons is more bound up with business
conditions Uncertainty as to the i'm
mediate future of the steel and of
the automobile and affiliated indus
tries causes hesitation. The action OF
the United States Steel Corporation
directors on the next dividend on the
common stock is awaited with great
interest. The declaration Of sub
stantial extra would be regarded Sc
indicating confidence the trade ou--
look, present and prospective.
4r%
CuARTERS CR SNrrn