Show FOREIGN BOND SALES Wan Street Unafraid of Anti Railroad President nr BY SnaRL Rr r J p Special to Tho The Standard Copyright right 1924 1024 by the dated Press Pres Association NEW YORK June 21 21 During the tho week Jut passed paned the tho disposition tion lion In most moot of or the markets has ben been to a an alt d developments In no similar period so 0 far this ear ve eAr r has bas there been such uch little variation In prices Evidence has been ben sup sup- supplied sup supplied plied that the effects effect of or the Iho busi busl- bui- bui business ness fleas of ot the tho last three months has been ben pretty well dl- dl dis In Wall Wan Street y alue Blues On th the other oilier hand the tho stock market hu become IA IIA r v-aM- v OHO pet pert of or relative Inactivity Ity In trade throughout th the summer partly due to the tho Un- Un Uncertainties un uncertainties certainties In the tho business busness pOSItion Itself and partly the result of or the reeling feeling pt pf caution which nOU WALL SmElT SmElT- The rhe coming Democratic cam cam- campaign campaign has been discussed as a re- re restraIning re restraining straining factor and perhaps this la i so 80 But looking at nt the matter maiter In practical fashion the worst wort that the Democrats could do would be beto beto boto to nominate an railroad anti man manon manon manon on the railroad anti platform So Sotar Sotar tar far as tn taxation atlon Is concerned the DC hae have already had their say ay A radical change chanKe in fiscal policies Is therefore able It If there was sas aa likely to be ba a political 0 th the railroads railroad would b be bethe bethe the ones ons to suffer Vh Why Is It then railroad Stocks have havo stood out In the mark market t of ot the week seek k mor more strongly than any other oilier group roup The ans answer Cr must mul be that either Wan Wall Street dos does not believe bellve that an railroad anti Democrat sill be nominated or else Ise that It if nomi nomI- nomInated nominated nominated he would stand no chance of oC success I lon Money rale rates ha have hae e continued to hold hoid to the low levels reached a Week wel ago which Is the 10 est In seven sen years ears Much Aluch has been mad made or of this feature In current discus discus- discussion discussion sion slon and people who ought to hae ha known better hive ve trl tried d to rep rep- rep represent represent resent rent that abundance of o credit on such easy terms tenus win will promote a are areial re reh reial h al In trade trado activity All x cx- ex experience and ond particularly shat hat happened In the last lat three months month of ot receding production and price has been ben a period also or of tailing falling money rates rales When Wien hen the mills were operating at 90 per cent of ot capacity In March the tho ted al reserve banks were ing charging 4 12 per pr cent on rediscount anti and In the outside market markot mon monc ass aa lending at 4 per Ier cent and abo aboe downto e With Hh steel operations down to 40 46 per cent the federal roene rat rate at e en es Yo Toik k I li is 3 per c nt and call can funds on the New Nw York stOck e exchange change ar are going begging at 2 per pr cent IM IrL I IG The fact act Is la of oC course that easy money can be bo A help to bust busi bustness business ness when shen hen other conditions are might light that Is when hen there Is la a 1 sound relation between betseen tion consumption and output There Is nothIng also In the notion so 80 often pro pro- pro pounded propounded In recent rent years e ears rs ofa ora sold gold inflation leading to speculation and end using prices Th The markets of ot the tile last year ear ha have hae e ex- ex cx ex the talla fallacy ot of o this lew I The stock lOLk of ot gold In the tho States Statts amounts amount now to about 4 4 This compares compare Ith I 3 In 1918 and d sith lIh less than 2000 In 1915 Gold Import moreover are not letting up but have o been ben ma- ma ma mo materially Increasing What has happened during the thelast last lut 12 a months Is that the net gold receipts of or some ha hae hac hagon c gon gone Into the Institutions belonging to the 1 I edal Reserve nene System and not Into the Federal Fedral Reserve Banks themselves rhe The holdings holding of ot the latter aro are about the same as they were a 8 ago This gold has hos ben been used ud as lis tho basis for tor taking care of CI edit demands demand while shile the member banks have hae continued to toI toY I IlY Y ort oft obligation lons at Bt the rhe The result Is that the present total of or rediscounts rediscount hos shrunk to against last ln t year ear at nt this time lime and comparing with slUm the peak pak ot of over othe 3 at the tho ha height ot or the era of oC 1920 One hs to go back to the earl earI stages ot of the n nen nes banking regime to u 5 S s CO coer such a small use of ot th the re- re re discount rediscount privilege as non nos obtains t POlLAR The Interesting development from the un unusual uSual money situation appears like lo to lie In the investment por- por por tion lion portion of ot the tho market The Tho highest grade bonds like the he liberty lIbert sand s and th the loans ha have hae already prett well welt adjusted themselves to th the lowered levered ored Interest rate rale rates But there thre has been during tho the last seeka week seek I a demonstration In the o of C foreign governments o me I and this has s sC sI fitted I l lo In s nith I Ith the I opinion expressed In sell ell Informed circles circle that one of ot the phenomena phenomenal I of ot the t ne six silt III be bo a rene ed application on a large scalo for tor fresh loans ns In America On inthe the tha palE pait of ot foreign and private foreign firms go 1 I ego of or this sort aro are under way at the present time The Idea ot of the cente of financial gra gravity Ity from otI I London to Jew Aen N lork ork becomes constanti mor more plausible The question I Is how the Amen Ameri American I can Investing public wiil treat these theae offerings P they 1111 sill b be attractive a on account of i thel high return In a I uhn wre re e Sound Bound home Investments ves are approaching prohibitive prices J I |