Show INVESTMENT MARKET Cheap Money I Is Incentive Incentive tive to Business With Outlook Favorable 11 Il 11 B tO SiLLER II c Correspondent of the I t miner Copyright 1924 b The Con Con- Con Consolidated Pies PIMO r ip association YORK lORK ORK June Th 21 21 Ii The The in- in In Investment vestment market has been ry ery strong all this week seek ek High grade securities of ot all kinds have been In demand and hll while shile from time timeto timeto timeto to time there have ceen oen minor r re- re reaction re-I re actions action due to taking profit at lit no thee LImo ha has as there Ihre been ben any I Confidence In the future of or the market h has haa been confirmed by the be beS I S ek cek s a developments development The result has ha In been quick ab- ab ab absorption sorption of ot all desirable new nw of- of of offerings brings and In many cases sub sub- subsequent sub subsequent sequent sales at a premium over the tho original orb price This In itself Itsel la is a chan e the con con- con had prevailed durin during the past six months month Up to a 01 i few tew weeks ego ago a new offering ottering oft which maintained Its quotation after th the support of ot th he hc of offering Cering syndIcate had bad been n awn was sos as an ex- ex ex exception not the rule On the a price slump of ot from 2 to 6 points was sas not uncommon ow all alt this h has changed and the investment mark market t favors th tho sell sell- seller sell seller er r and not the bu buver buer er 1110 rY MO rY It TI Il LOW The reason for all this strength I the money mony situation and nut not any Improvement nt In the trade out out- outlook out outlook look Last week the market had the reduction In the rediscount rate of ot the Nc New Nv 1 V ork and Bos Bos- Boston Do- Do Doton Boston ton I edral Reserve banks bank and the fixing of ot a ft 2 t per cent rate on the tho government s new financing ing as tangible evidences of ot time tho 1 new trend In mone money There Thre hav have ben been no such developments de this seek k but nevertheless s rates ba base continued to sag Call mon money haa ha ruled at 2 per pr cent all the week and time funds ha have hase e loaned at atthe atthe atthe the 10 lowest et since 1917 Moreover the supply of or money ha has ben been gnetter g than the demand even esen rn at those low 10 figures Under these circumstances tanca the market price ot of In c in securities has Jas been Ir- Ir lr forced up t Is not enough howe however r to say that cheap cheal money mony has been a stimulus to the market advance For a complete understanding of oC the situation It Is necessarY to go goa goa goa a step and Inquire hene corn comes tIlts this Immense surplus of funds The accepted cx- cx ex explanation Is la that trade reaction has mono money from bulnes bu Is forced to find somo some other employment and so turns lurns to In- In In Investments vestments estment Undoubtedly this has had something to do with sith the tho mat mat- matter matten matter ter ten It If that were re all nil bo boe however e r It toll follow ow that business revival bring about a r er il 11 01 ol time entire situation I or OF GOLD As a matter of or fact toot the slack slack- slackening slackening ening In ha has been only on one factor and probably the tho least Im- Im Important Im Important one In th the mono money market markot the rho other Influence and on one I li is th the deluge delugo of ot gold gohl which 11 11 been Inundating the United States tor for the past t tso 0 or three thre sears lears ars Treasury estimates are ore that on Juno June 1 I this country held 4 00 In gold ROld which Is the largest stock of oC the yellow metal evet assembled In anyone any one coun coun- countr country tr Ir try at an one time This Is not nil all The gold Is still oWl com coming In In InThe inThe InThe The official forecasts are for tor an Importation of ot about 5 moc during In 1024 4 It will take n a trade trado rc revival h 01 of ot considerable pro pro- proportion proportion pro proportion portion to make mako any impression upon these total totals It Is upon this nt argument ar that Ihal the case for tor L a a con con- continuance con continuance of or th time the present lr nt ease case In mone monel and anti so far tar sustained strength In iii In Investment resto rest n TO Tn DC It should be understood then that this assurance so 0 often In the tho future of ot an In- In investment In Investment vestment market founded upon easy money monel does not Imply ak ack of oC confidence In trade re revival hal tin Un- Un Under tier der 1 ent conditions condItion It Is per per- per perfectly possible for tor th the t Is two a 0 to fo ro to- to to together gether It will sill be contrary to au alt all ex- ex ex expo po lence It If the ultimate result of oC an abundance of ot credit i Is not an n in incentive e tor for buln business exp It has always been so ao In the tho past Pt and ther there Is no reason to believe bellevo It sit nil not nOI b be so 00 In tho the future Xo No Xoi Noone Noone i ono one can predict the exact act time shen h n this will wUl come cone to 10 pass but I butI that It sill III come admits ot of no I dl- dl dis dispute The two features of ot investment this week have hase been the demand tor for new offerings and In- In ln ing favor or shown hown for for- tor aign Ign bonds Probably the latter has been as much speculative o 11 as Interest I IN CST It 1 r GOOD rh The speculative attraction ho lios- lios how ee Is founded upon the Invest invest- Investment ment mont sItuation The Tho case ce ot of French bonds may ba he taken for tor illustration It Is doubtful ci heth- heth hethel el ci the buying thi this week seek ek which car car- car carried rId led French dollar Issue Issuer up the highest points ot of o the year ear sas primarIly for Investment Bath RUh Bathen er er en It has been speculation built upon uron the tho tact act that to borrow mon mon- mone monC mon mon- money e C ey at rates and buy with slUm the he lie proceeds any security leiding from 72 7 to 8 11 pet pel tnt tent a operation provided however howe the 7 to 8 S per cent r urn I la is ron reason son rea abil certain Foreign countries with sith Ith new fin fin- financing fin financing to do are arc exp expected to take ad of or the pru present nt market markot The Tite railroads are arc likewise like Iso maUn making the most mot of ot the opportunity unity Most Mosto ot of them 0 owe ose a large larco sums Rums to the SO la In U the shape shapo of or on which the Interest Is elx dx ix Cent Many carriers are In L poJ 1 po position to raise money mony at l t much lower char charge In toe mi-ar- mi k kt t and the plan Is to pay poy oft off these thee government six ix per pen cent nt notes with the tho proceeds proceed ut of Icam leaM made In the open market markot at t a 10 loss loss- lossU low lower er U r rate i I |