Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-06-26
STOCK MARKET TRADE SFIRINKS;
UNFAVORABLE TURN IS FACTOR
Bonds Continue Heavy, Due to Hard List
of Undigested Offerings in Brokers
Hands Absorbing Loans.

, any other non-essentfal should have
been the one this week to originate
such policy. Except In the field Of
| transportation, there have been few
lfnstances this year where radical wage
demands have been successful. This
is an evidence that employment is
being sought and that there Is a sur.
plus in the labor market.
Bond Market Badly GIutted.
1t is some years since a condition
such as exists in the investment mar.
ket today has occurred. Ii was esti
mated this week that there were
$500 900, 900 of unsold new issues in
original hands. This figure Is un.
doubtedly too high. but the sum is
large enough to have a very direct
bearing on bank loans. In a sense
buyers Of bonds are on strike against
present prices. There Is no prospect
of improvement until the level of
prices, for new issues particularly,
drops to the point where the invest.
ing public becomes interested.
The supply Of new bonds has fallen
off somewhat, but the market for for
eign bonds and for many OF the new
domestic industrial issues has been
very much upset. Restricted output
and the closer balance Of the opinions
of the banker and his client on the
question of value are necessary before
this condition will be corrected.
1t will be helped, of course, by a
season of moderate money rates. AL
though time loans this week advanced
to AS per cent. after being as low as
Az per cent in the Spring. there Is
no suggestion of firm money. During
the July l disbursement period, call
Axyo u
renewal rates for a few days at A..
per cent, and possibly as high as 5
per cent From then on until the
1st or the 18th of August. money
will conc entrate in the New York mar
ket and should be extremely easy, as.
Stunning there is no withdrawal of gold
from this country for French account
After the middle of August and until
November rates are likely to advance
again. The entire money situation
would, of course. be affected adversely
by continued increase in brokers
loans. due ITO an accumulation OF un.
sold bonds. and, on the other hand,
favorably Ivy q severe break in the
stock market. releasing funds from
speculative commitments.
1t is more probable that the usual
play of events surrounding the mar.
ket will have. a larger influence this
Summer and. sFall than others of ex-
traordinary character.
Crop Outlook Unimproved.
The crop sit,1sa ton, so far as Winter
wheat and CORN are concerned, has not
improved. Continued rains have low.
cred the averages for both crops.
However, the outlook for cotton Is
better. Where's there were fears for
this years growth few weeks ago.
there is no wanS expectation Of high.
ly satisfactory Ereturn when the sea-
son closes this Eall.
France continues to adjust her
financial conditiIo MS, the government
steadily reducing1 its debt to the Bank
OF France, building up foreign bal.
ances and placing herself in a posi-.
ton to stabilize bier exchange. Italy,
having followed ther program of ex.
change stabilizatibn around 5h cents
with a series of ,ificial DEGREES reduc.
ing rents, wages and the middleman's
profits to conform with exchange, has
this week faced a. runaway market
again in the Ira, which may bring
some embarrassment to the govern.
ment.
Germany, in domestic; or foreign trade,
or in finances. ThelE' has been an ex.
travagant government and municipal
administration for the last two years,
which has called foT| comment from
the American agent general of rcrara.
tons, who CRITICS the, German budget
and calls attention to the acueeness
of the problem arisin 3 out of increas-
ing governmental expenditures. In
the next two months tsansfers Of repa.
rations of between A00.000,000 and
900, 100000 gold marks Unjust be made.
1t is possible that new German dol.
lars loans will be nego Hated to assist
In this transfer. u