Show HIGHER GRADE BONDS Rail Bail Merger Proposals Held Only Academic Discussion BY BIRON RO T 1 Special Correspondent Standard Standard- d J ExamIner Copyright 1923 I NEW YORK Ia May Mar 19 IS study Study or of orthe the commercial and l de- de developments de developments of ot the wee week I throws no none noI ne flea light on the future either rither of ot I or of o f the securities marI markets mar- mar t kt-t Business men are sere con con- I tod toda Investors are arc reason reason- reasonable abi able Speculators ire re doubtful I I Taking up conditions In detail the moteo mO mArket Is 1 still eSY e Commercial paper rates are steady at B 6 to 6 5 4 per cent with the bill hulk k kI kot I ot of the business at it t the lower rote rate Demand tor for speculative purposes purpose I ismall small and dem demand demind nd for sa cx- cx ex expansion I panl n has haA not malt In- In in I I I 1 he of ot the Federal Fedral lie lie- serve Re serve system rho shows an advance ance ot of 2 In the total bill bills but this l I Is n R very vry amount and the New ew York Cut hank bank shows a n decrease in the the- ilig Id I'd pAper pH ot of o lor l'or or the there re I Is a decrease dt I iii Ingold gold reserve reer of ot 1 a 1 in the total of ot I Perhaps the I hp mot most Inter Interesting thing about this week s federal re-I re re- re re Iser serie e statement Is the large In- In increases creases in creases creases the I system as a whole and andIn andin In the Now ew cw York bank of ot hills bills purchased sed In th the open market marlet Thu andI I Ii h in accord with Ith the announced policy o of the federal SH Rt-SH e hoard board Incidentally talk about a aI I higher r rediscount rate ralp rat ha has hns almost entire entirely Iv subsided d HOM OOS S An A VA CT cr In the bond market the strength In high hl-h grade rail rails and Industrials s h been very erv notable In the past month securities of or this class ha hae e advanced somewhere re between en Hc and a dollar on the It Is doubtful whether v heher buying has been primarily tor for the account of In- In Investors inVest In Investors I Vest ors It is more probable that dealers and traders have been accumulating accumulating ing the securities on the theory that low lowe prices and the subsiding of ot speculation In coupled with the continued lease ease in mone monc would mean higher r prices ricEs tor for prime bonds There is nothing In the market to show that t the theory Is I IThe The treasury's offering ot new newt s 4 or s per cent notes was ass vcr eO er hea- hea heavily ily lIy oversubscribed Some ties ties- ties have have drawn the Inference I from cash the fact tact that allotments against cash sUb subscriptions were limited that Secretary Mellon expects easier mone money in the future 1 New ew offerings b Investment bankers ba have hae e been I ser er small II More ore activity is looked for rn next week I SUGAR SU All SITUATION Commodity prices hae hac nave shown Ir- Ir irregular Ir Irregular regular changes over the eek There haic hao been advances in wheat and corn while flour I Is lower Cop Cop- CopPer Copper Cop Copper per is lower and nd so 0 I is tin Steel and And iron are arc unchanged Cotton is higher Sugu Is a little 10 er As to the sugar situation the department department of ot justice is I- said sald to regard regard re- re Igard gard its efforts as aa successful not not- notwithstanding not notwithstanding withstanding the setback in lIt court The sugar brokers regard them them- themselves selves aa as exonerated howe however er and p Cr body Is happy hippy except the I Cub Cubans ns attracted The news ot of o the wee week which has I attracted the most attention has been the announcement by the do- do de department I of commerce that tor for the first time since 1914 the lance balance ot of trade In March last turned against I the United States In that month there was an excess It if Imports or of I over 60 This was the largest excess for tor anyone any one month In the history story ot of the country i While the real significance of these figures cannOt ca be known until the detail details aa IU to the commodities and and the countries ot or origin are available It seems to be the gen gen- general gen general eral oral opinion that this Import ex- ex excess ex excess cess was S as largely made up of ot raw brought Into the United States for manufacture reflecting trade activity E EXCESS op 01 Of GOLD The deduction drawn in some quarters that gold export exports are near looks foolish in the face of ot the exchange quotations When the turn In the yellow tide does come however as a- ait it must some come day It will be bt- looked upon by the tho well In- In Informed In Informed fonn formed with satisfaction It is a question how bow such a move move- movement movement ment mont will affect the speculative mind and perhaps even the minds ot of our bankers We e ha have hae e been taught to characterize an excess ot of Imports as aa unfavorable for tor so tong long a time that It is not at all certain gain tain the psychological effect of ot gold exports would be the same as Its effect Also lt it must mut be remembered that a large share t cf the prevailing ease case in to credit is due to the enormous excess of ot gold RAILROAD OUTLOOK Car loadings show a slight de- de decrease de decrease crease St They are still at record cord fl fig fig- figures fig figures ures tor for this time ot of o ear but the total tor for the week ending May 5 the latest for tor which returns are available was under that thaI hat of ot the previous week Freight traffic for forthe the first quarter of or the year was the heaviest In tot for that period It would seem that the bar bar- barnets car carriers r nets of or the United States were wre re reeling In prosperity No o confirmation mation matlon of this view can be had from the quotations for tor railroad so- so se securities however The inter tate commerce commis commis- commission commission sion continues Its hearings on the railroad consolidation program It ItIs Itis Itis Is hard bard to regard the proposed mergers as of ot more than academic Importance Under the law no rail rail- railroad rail railroad road read can be forced to acquire another road against Its wish and the strong lines ha have hate made It ery ery evident that they will not voluntarily Ily burden themselves with the weaker roads Even lIven it je congress should attempt to make consolidations compulsory lears ers roust must lapse elapse before th mer mer- mer- mer mergers mergers gers could be he put Into effect And meanwhile the agitation tallon for tor lower rates goes on Some road roads doubt doubt- doublI doubtless lens doubt I less woul make maJce money at lower r freight rates but for tor others such uch action would mean ruin The big question Is la who I In is going to 10 furnish the capital for tor the th Improvement program |