OCR Text |
Show A SMOKY W.EEK. H The past week has been a "smoky H week" in financial circles, but there H is a light in the sky, says the weekly H IVache letter. The big brokerage firm H feels that conditions in the financial H centers arc certainly bettering and H chat confidence is fast returning to H the market with a resultant rise in H The following is the weekly market B M If ever it were needed to prove high H generalship for the Union Pacific, it H would do but to point to the financing B of the company's bond issue just H . closed. To have had this successfully HJ underwritten, and oversubscribed in HJ the underwriting, months ago was a HJ bit of far-sighted management, which HJ has its fruition now, with the public M subscription falling flat, and making HJ not the least difference to the rail- H road because it has its money. Ncv- H crthclcss, the public failure to sub- scribe has had its effect and the week HJ has been one of fluctuating sentiment, H mostly gloomy. For those who wish HJ well assured principal, a good, round H 5 per cent per annum, and a chance H to take advantage speculatively of HJ their faith in the country and its ulti- mate emergence from the clouds of H the present, these with their feature M of convertibility into the common H stock of a great railroad with great M prospects, afford splendid opportuui- M I The other pessimistic features of M the week were some further export M of gold, a rise in call rates, and k.ilci- M doscopic manipulation of Japanese M and American Jingo news. As if this M were not enough, a fresh outburst M from Washington, threatening rcceiv- M crship for the tobacco trust, fell with M a sickening thud on the bciumbcd M body of the patient. Constant whack- M iug, however, has made opinion al M most insensible and this startling bit M of news, which two years ago would M have caused an explosion, simply M made the situation more smoky. M The foreign bank situation still con- M tinucs reduced as to reserves, the M Banks of England and France both H showing lower than a year ago, and M each straining for a recovery of -?old M The movement of export which we M arc watching with such interest, and M .doing nothing artificially to offset, H will probably have much effect upon H our situation later when the fall H squeeze begins. H This year it is to be presumed that H the Old Lady of Threadncedle Street I (Continued on page 7.) H j (Continued from page 3.) 1 will not be caught napping, and if, k, ' ' and when, Cortclyou tries the Shaw k tactics of paying interest in transit. I the Rank of ' England's rate may I quickly rise prohibitively, forbidding. I t Wc shall begin to be then in throes of our yearly money stomach-ache, and what medicine shall relieve us? And this brings us to a consideration considera-tion of the, outragequs waste of gold reserve in America, through our sup- crannuated, vicious currency, system. y ' There is gold money enough being carried around in the pockets of our people uselessly in the shape of ware- house receipts, to make rcserves'casy around the world. Those $20 yellowbacks, yellow-backs, every man who carries a roll flashes on you when he opens it, represent re-present a wicked waste of the basis of prosperity. It is as if a man recklessly reck-lessly poisoned millions of bushels of grain in warehouses, when thousands of people were dying of starvation. All these ar.c serious considerations, and the horizon line i not yet clear enough for much optimism. Nevertheless, Never-theless, that the situation is clcarii.g there is no doubt, and the calm way in which much that is depressing' i? met, gives good evidence that prob-ably prob-ably the worst has been encountered as far as securities arc concerned, barring always the daggers of .this fall's money- market'.' Complete .'recovery,' .'re-covery,' however, and high, prices feem still a great' way off; Meantime, the security market furnishes a. most attractive at-tractive field for the investor, and pre- fcrrcd stocks, convertible bonds, short and long notes, and even some common com-mon stocks, make up a wealth of selections, se-lections, any of which, if purchased, are sure to'produce great rc"sUlts"f5r.' tljc. mvcstpr, .who-will -IiQld, .them, -, ' . r c ' '" " ' J. "S.- B ACHE Si1 Co; n |