Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-29
FRENCH BONDL|ST
FEATURE OF WEEK
Other Foreign Issues, Par
ticuIarIy IndustriaIS, Show
Much Activity.
BY GEORGE T. HUGHES.


Special Dispatch 10 The Star
NEW YORK. August 2S.---The out
standing developments in the invest
ment situation of the week have been
continued activity in the market for
French government and foreign in
dustrial obligations, further signs of
hardening tendency Of time money,
and a substantial increase in the
amount of new offerings.
Toward the end of the week the de-
mand for both the French govern
ment per cent and per cent bonds
resulted in new higher records being
established for the year. Industrial
obligations of the type Of East Rail-
road IS have been favored in the buy
ing, this issue in particular being
carried to its best prices for 1926. The
increasing demand which is develop
ing for these issues apparently is
based in part on their comparatively
high yield at present prices, but more
particularly is reflection or the
quieting down in the political sltua-
ton abroad and the gradual stabili-
zation of the French franc.
Little Domestic Action.
This naturally has resulted in
lack of interest in domestic corporate
issues which. save for the speculative
rails. have been practically without
feature. German industrial obEga-
tons, which went into new hlgn
ground last week, have continued
prominent. but are down slightly
from their record prices. although
the pronounced demand for Rhinelbe
is and German Electric 6l2s has
been impressive. At the same time
Poland 6 and per cent issues have
been carried forward substantially,
the former to it's best figure. while
more active market for Italian rs
has carried them up a point or SO.
so far the higher tendency or money
rates has not had its erect upon
highs grade isues. Their failure to do
anything noteworthy can best be eX-
plained by the fact that foreign obi
cations. because of their yield, nave
absorbed attention.
New York Railway IS.
New York Railway 6s have featured
local traction issues. The sharp up
ward movement which has taken
place here has been direct response
10 the order of the transit commits
sion permitting the Fifth Avenue
Coach Company 10 purchase All OF tne
common stock of the New YORK Rall-
wav Corporation at SO a share. This
was taken as an initial step toward
the unification Of surface lines ana
the eventual replacement OF surface
cars with buSseS.
The manner in which new offerings
have been absorbed leaves the impress
sion which has prevailed Tor some
time that funds for new financing are
plentiful and probably VIII remain So
FOR several months. despite the up
ward drift of call funds for specula-
tive purposes. These offerings have
approximated $8l.520 900, compared
with SAT SAC 900 last week and ~, 4oO.-
900 in the corresponding week III 1890
The $50. 900 900 Westinghouse per
cent issue due 1916 was the largest
niece of new financing and was quick
w oversubscribed Considerable IN
terest centered In the Offering OF ~,
500 900 one -siXty-tive Broadway oulld-
ing first mortgage 0i2 per cent SIM
in. fund gold bonds because or the
fact that 1t was the largest piece or
new financing for any completed
building offered his year. The issue,
legal for the investment or trust
funds under the New York laws, was
quickly disposed Of, subscriptions nay
ing been received in excess OF the
amount offered.
Large Foreign Offerings.
Offerings of new securities during
the first six months of 1926 have been
featured by large foreign Obligations.
l. is expected. however, that from
now on public utility corporations, VIII
he in the market in an active way Tor
additional capital. During the frst
half period corporate security oner-
jnss increased IA per cent over the
amount for the first half OF 1870, While
Government securities declined 4per
cent. The amount Of new financing for
municipalities during the period de-
cined to s71l 1000 900 from $751; ,000,OOo
In the same period of 1929. THESE
figures are accompanied by the state
ment from reliable sources that pro
spectiye municipal flotationS indicate
that the year as Il whole Will snow a
Sttll further reduction.
Speculative railway issues continued
10 work higher in sympathy with new
high records for railway shares on the
stock Exchange. The demand has
been accompanied by another series
Of highly favorable railway earning
statements for July, showing substan-
tial increases both in gross and net
operating income over the month a
wear ago. International Great North
ern adjustments have been carried to
their highest prices While Seaboard
and Missouri Kansas Texas issues
RI