| Show MONEY STATUS GOOD GOOB Bonds and Low Priced Stocks Well Taken By I Traders I B I By Dr SELLER f Special Cat P Correspondent of ot The Tho I StI Standard Examiner Standard Copyright 1924 by Th The Con Can Consolidated Consolidated Pre Pree Association NEW YORK July 26 With With the Investment market markot established on what hat appears to be a p nUY hl her leel level le el there appears appear to be to a shifting of at Interest this week from the so called edge gilt securities to those o ot of slightly lower g ade This Is the tho normal norma development de when hen the advance adnee In a 0 bond mork market t has ha reached a a certain stage There comes come a time when ehen hen tit the tho yields to be obtained on the very ery r cbs securities are aro no rio longer attractive and In investors begin that they can afford to sacrifice a little quality for tor the sale sake o of a little more Income BONDS O DS AT The is that no one un can say any Jut Just Ju t when hen this stige stege lie arrived The trader 1 and dealer I li is almost almot sure sro to bo be of the market Whit ap- ap appears ap appears I pears evident Ident to him he believes I evident o to other people and so while most ot of the claim to be he convinced that pre prea- Jre nt ent quotations for tor honda and first mortgage rail rail- railroad rail railroads road roads have about discounted the money situation their conclusion may well be bo premature premature- As Aa far faras faras lr as the quotations quota go lOa there thero I Is asyet as yet et no sign go of Any roo ro- action Not anI only I Is the tho a average for tor 40 bonds bondO IncludinG high grAde and second grade grae railroad Indus Indus- IndustriAls industrials Industrials trials and public utilities at the tho high of at o the lear Car ear but Iut the high point to fo In the first grade was nas as ASO also reached this week It if the rise to date has run ahead of at o the fall all In money moncy rates rales it does not show how In Inthe tho quotations quotation There Is also the possibility that these market corn corn- com commentators are deceiving themselves about th future of at mane monet The expectation Is reviving re with It Its Increasing demind nd upon the banks for tor or commercial a well as q the needs ot of o the crop MO Ins season will take lice up some come someo of the slack clack In the money market Sooner or later Iter that has hns been the order of at e events In times limes past pst anti and or of course a stiffening In III money rate would check the rise of ot high grade bond bonds even en though It ml might ht not nol turn them downward down Tim The peculiar difficulty in tiny any forecast just nl now is that there Is no pI piece piece- dent ece- ece dent to go b bv GOLD LOW LM-LOW Never before In n the history of at this country or any other for tor that mitter hoc hoa there been heen such guch a stead steady Inflow of gold as BS has hag been pouring pauling Into the United States for tor forthe the past sear ear or more No 0 one can cn say when hen thi this tide will III be checked or It if not checked vilt III willbo be absorbed In la business bulnes and spec pec speculation Study Studs ot of o the state state- statement meat ment of the I federal deral Reserve banes affords no ground for the opinion that any change In fundamental In money moncy rates Is la at band Total gold reserves of ot the federal resen reset to banks are at nt the high of the year Holdings o of discounted bills keep going down The loss los In Inthis inthis Inthis this total this week eek over oer tho the pre pre- preceding pre preceding ceding week eek was as 14 while the loss for tor or the year sear or was na s federal reser reserve e notes In circulation tion dropped and Are Areno arenow no non below what hAt they the same time a year ago It wilt be time enough to talk about effect of at a larger demand for or money when hen It b begins to show how In inthe Inthe the re reserve erve bank G STRONG G There Is however 0 e eer er another pos pos- pos possibility to be b taken t into consider consider- consideration consideration consideration That i is h that the disparity In money mane rite between een London ind nd New York my mey Induct II a a now flow of at funds fro tro side to the tho financial capital of at the old ola world orld It I Is more than n probable that come somo shIfting of at this kind has been going on this week and accounts for tor the tho present strength In sterling exchange Hero here again we e hae ha havethe the difficulty however that con con- con consideration a as n well Ill I'll as mone- mone money move move- move govern goern th the exchanges exchange About as ac tar far ar as it I Is sate safe to go then gothen is to say gay that forecasts forecast or of money and Investment IlI conditions Condition ore are valueless unless clone cloce attention I is paid oth to the federal reserve bank statements and und to tho the ex- ex exchange ex exchange change chanie market STOCKS So 10 far only high grade grado Invest invest- Investments ments mont have hae been considered Any of at the week would auld be In- In Incomplete incomplete In Incomplete complete without reference to the strength exhibited securities lower In Quality There haa bai been active actie 0 speculation In low low- 10 lower lower er priced railroad bonde bonds corre carre corresponding to the same came sort of at trad ing trading in toc stocks There Thero h has hs been this difference ho hoc however c or the bond mar ket market ha has more to Justify it than has the stock market There ha hae have e been boen some same curious discrepancies In the tho relative prices prIce I quoted for tor or the stocks and bonds I of at those these roads road While the storks i ir were being bid up 3 8 to 4 points tim the hon bonds ls of at the tho name lime corporation wore ore obtaInable at prices to yield any any- where anywhere from rom 7 to 9 per cent and more In somo some Instances there have havo been large largo accumulations of Unpaid lInn Interest on Income bonds bond which must be cleared up can receive recelo an on their In Investment estment and vet et spec opec speculation In Is the stocks has bs gone gono on just a as If It these those accumulations accumulation did not exist elst Some of at these dl discrepancies crell ancle ancie have havo been boen partially cancell o cancell-o forthe orthe o 0 w week ek by higher prices price for or the bonds but many of at them roo re- remaIn re remain main i for tor the buyIng which has advanced quotations quotation for tor t railroad stocks stock and bond bonds alike has not been boen increased ed earnings It may have been boen taik of at mergers merger or It may mAT may have have been beon Inspired by con can con confidence In the tb near approach of a time when the railroads will ba b allowed to work out their own cab 81 v nl vallon llon with a minimum of cal cab Interference I |
