Show HIGH GRADE BONDS STRONG 1 Washington Looks for Period of Reasonable 1 Prosperity I IB Bv Bi BYRON il I to Com ComI nt t i f TIe The l I l I 1923 I I V NW YORK thy May 12 Two Two dl- dl di opposite opp Interpretations are 1 on the week weel ll s developments In the financial l and Commercial worlds world Before e theoe stating con con- con contradictory i coni ory conclusions lons drawn by equally well Informed byI I It m mat mav V be b well ell eli to examine with aith lIh ome orne detaIl not only the new nw dee dc- de developments t but conditions which Iome have prevailed 0 over oer er a II considerable period I FI First then te i I to tl U e money mar mar- marcet Quotations mar ket Quotations showing I leg ing In ease e A week eek or tl tco t o 0 ago I 5 o iper I per pr cent a was bid and 5 1 per cent I aed for Jor jor 60 and 90 day funds On FrIday of ot this week seek eek bids ere rE reduced to tn 5 S per cent and moneY wa freely offered for tor ill II maturi maturities ties a at II 54 14 per cent Th The seekly statement of tf the th Reserve b showed ho i t lecren decrease t in redis- redis redis pOlln l for the system of 35 against an increase for Cor or last wee week I of More ore significant cant coni still till tIl this weeks week's eks statement cs eo- eo a n new high record Cor or 1923 In total gold holdings nO BONDS BOS PIH Also Alao bes healing beating ling on the money situ situation allon I is lq the lery sery unit firm tone she she-an n In th the market for lor high grade bond bondi during the last laet few fes days dayn day Bonds wl-Ich wl showed ho Id I'd the tue greatest strength I were the first mortgage ne rail rails an l such Industrials as U S Steel inking tu fund 13 s the quotations for II which ord ordinarily respond only to pr ent pr sent or prospective In Inthe th the charge for tor mane money It 11 ma may be that actual Investor are not acquiring the these o bonds but that doe does not lOt alter niter the fact tact that the quotations are higher for the I kind of ot securities in It which a capital 1 seek employment when it is not notI needed d in business s I With Sith a II less few notable commodity pi ices show declines over tle no last se seven seen en day period This is the case with wheat vhaL corn I flour lead copper an and tin There Is no rush to anticipate require require- requirements requirements ments In the belief that a a higher price must be paid later on These decline decline- moreover come In th the face of- of of o no apparent Increase s In Th en ease case e of oC raw silk Is typical The statistical position I Ic I ery strong but the ma maket Jet is quiet t land and the mills are o great caution i STILL For tI the first t time Inc since Decem Decem- December bar ber the U S Steel corpo re re-J re ports portA i decrease In 1 unfilled on IL its books bool Two reasons are ascribed for Cor the thc drop One Is Ic the falling failing off ate in buying because o of ot dif difficulty IP II prompt I and the Oilier olier th the higher rat rate I of op operatIon r which allows S lh th the corpor corpor- corporation alien atlon to cut do don down n obligations rap rap- rap W idly rapidly i iB B 11 projects to the amount I ot of about 60 in tn and around Now ew York City habe have hase be been n tem tem- tern lem held up th the n assigned a iso rea-iso so soi being e ce s e cot cost of la bOI and mAterial More prominence I has hns been glien gisen to this of thel the th Ui s 5 week than tp to am el elce 4 It Is to predict just hoW far tar this movement will wll justI go o oThe I The oThe g-oThe contractors of if course coure hope to toI hello bead off oft tiny demand on tI the part I of lebor labor for Cor higher compensation I partI nd nd ps p tora to ra ix l the th onions to accept 10 lo lower er wages wage are arc ready to continue ue the nion of activities indefinitely I In case cp JOe c of ot lor l'or Interests 1 firm Is p e Twitter matter of or II which hidi there ar are two opinions Meanwhile the ital Importance of ot this to is s evident e e JI ht Fall Rh Rl River Ir at mills curtailment of operations on tb the ground that they were ere v ere unable to contracts at nt i a a l price to meet operating co as its Increased b recent inces nd In age v ages and could not wo o eo the ad adIa of filling op ip 11 their storehouses I Ith 00 I 1 ht his looks like an- an another an another other buyers rs tr strike to Inaugurated by hy the contracting builders 1 o I eHr this dispute and that of the bullies bullie's with sith their workingmen men mav may come out the only rp- rp recorded re recorded corded changes change In n v ag age scales ar an upward r pr orlo It Is I- announced i th th-it the will willI I demand 8 an n Increase At lea least t to r hav already granted In- In In Increases erns creases th the tries bpi II and anI of ny waymen ay aymen men I menTh This o Th- Is no evidence e of slack slack-I slack slackened ened nc in the automobile trade hut but on the other tho th I expected general Increases In the price e of or the tho finished products have not de developed Production generally h has s con con- con continued at a high hish rte rite at least un-I un un until til very ery recently a as is ii shown h by bythe hythe the g figures which hh for fortin or orthe the past ast w week k railing April 28 I all al records for tor that time lime of year CAl C I 10 Now Xo-a what arc the deduction drawn front from all these facts facU tact Ono One Is that there lias is been a letup tIl mi a bu eo which wilt will Increase e pro pro-I pro and iid the effect of ot sooner or later he e evident eIdent Ident In business It itself elf and in tn the securities IU market I The otier Is that the elY cau- cau caulion cau caution lion tion ls c lae cd l by manufacturers and merchants the decline In com com- commodIty com commodity prices and the abundance of funds make for prolonged pro pro-I pros prosperity on a reasonable scale The tom torn Washington tend to support the latter view slew Sec Sec Mellon Is quoted a as saing hit the danger of i tion ion I is pa passed sed and that sound pro 1 pro pros prosperity will aili continue unless nex unexpected p excesses are engaged in by business |