Show INVESTMENTS MARKET GOES CUES UP STEADILY Explanation Found In Declining Money loncy Rates Rates I In Country SA TINGS S A VIN G S GROWING This Money loney Eventually Finds Way Yay Into Bonds Claim n By Dv nl-HO nl BYRON SELLER SEILER Special of oC Standard Standard- Man Examiner Copyright 1926 by Consolidated Press Association NEW YORK Jan 30 30 Again this week the record of ot the Invest Invest- Investment Investment ment mont market has been one of ot slow and steady Impressive advances The average price of ot domestic bonds Is at t another new high un- un unequalled unequalled un unequalled equalled since 1917 An Incident of or unusual interest was the renewed Inquiry for tor United States Slates government obliga- obliga obligations obligation tion resulting In n new high quota quota- quotations quotations quotations for Cor the year for Cor three or tour four ot of the active Issues In this case the buyers are ar principally It If not entirely banks but the movement mo ls is significant of ot an excessive sup sup- supply supply sup supply ply of ot money seeking temporary employment The most mo t Important Vail Vall street house specializing In government bonds expresses the tho opinion that the advance In LIbel Liber- Liber tys is likely to go co on tor for three or tour four months the Inference being that the case ease In money will con continue con con- continue at least that long lone MONEY CONDITIONS Just as M the trend In bonds has been upward so the tendencY In money has been downward There has been an appreciable yielding In the charges tor for time funds ot of o all maturities and until the last of ot the week day to da day money on the stock exchange did not deviate delato from Crom 4 per pei cent the low Jow ot of the month Money conditions are reflected In the higher hither reserve ratio of ot the federal reserve banks as asa asa a 0 whole and of ot the tho New Kew York fed fed- federal fed federal eral oral reserve bank hank In particular The TheNet Net Nef York banks bank's per cent 10 r rs this week compares with 19 per 79 8 per cent In the same week a year ago It Is III reasonable to expect DI as spring approaches an an- Increasing demand tor for mope from business would naturally lI bring about II a hardening ot of o rates Nevertheless less leas there there-is no sign of ot Inflation In commodities In fact tact outside ot of the tho security markets prices ob- ob obstinately ob obstinately refuse to advance This Is true of ot steel It Is certainly true or of copper and while tome some food tood- foodstuffs foodstuffs stuffs stutts are arc re moderately moderately- higher the general level Is unchanged And commodity prices are arc just as much mucha a factor in influencing bonds as Is money moncy LOW COUPON Illustrating COUPON the more mor favorable 1 terms upon which corporations of established credit are able to do tl- tl tl I- I is the of offerIng otterine Cering this week ot of of ot Commonwealth Edison bonds with a 4 4 per pc cent coupon The offering otterine price was ata at ata a 0 substantial discount but the ln in- in interesting thing Is that this Is th the first time since sin e the thear var ar that a utility has marketed a bond with so 80 Iowa low a a coupon In part this Is due to the advance the utilities hav have made In gaining the public confidence but in ill part it Is due duo to the general Investment situation It will dou doubtless be a long Ions time ho- ho beCore fore bo-fore fore Core three and three and a halt half per percent percent percent cent bonds bondi arc are put lUt out by railroads as they used to be a II quarter of ot a century Century ago apo but it is not Impossible impossible sible amble that this day wilt will again agam return some time The one respect In which fundamental conditions dif dit now from then Is In Ip the Income tax POWER COMPANY COlIP BONDS In connection with utility securities ties lies demand for tor the high grade electric light and power and tele tele- telephone tele- tele telephone telephone phone bonds this week was stimulated stimulated stimulated by the mo ement to make these securities under certain re restrictions re- re restrictions legal investments Investment for Cor savings banks In tn New York state Aside ABide from Crom this the feature of ot the market has bas been the search on part ot of Individual buyers for tor discount bonds selling out of line IIno In this group tho he Improvement has been more marked than In mv hm as soon aS as a a b bond Zt r par and 1 I a premium the demand To an institution a x pre pre- pre premium bond is just as a desirable as asa aua II a discount bond the yield being equal but to the Individual investor the necessity of ot amortization Is an acle SA SAVINGS I DEPOSITS nearing Bearing upon the demand for Cor I bonds Is us tho the statistics showing the growth of ot savings savinn deposIts deposit of ot all which eventually go into bonds bond The figures are sire reported to the tho federal reserve board by banks banka In selected centers throughout the country showing a II ri ln In the these e de deposits I de-I do- do posits during the calendar year 1926 1925 from to 8 t 0 Despite buying and record breaking lation the country's savings con con- con continue to accumulate It Is Interest Ing to note not that the Increase In the th various federal reserve district WIlS we s the tb largest proportionately In Inthe the Dallas San Francisco and the th Richmond districts district The Th lowest increase was reported by Kansas City A good deal has been said paid ald dur- dur Ing durIng inc the week about the vantage to the Investor ot of o stocks common or preferred which lack voting power and the New Naw York stock exchange e authorities have taken notice nolle of ot the criticism In thu connection and have Indicated that they will wilt scrutinize applications application carefully ap ap- ap for listings ot of new stock stoel Issues In lu this category As its tar far ns liS the preferred stocks are concerned d the dIsadvantage It It Is IsIL isa Isa IL a disadvantage Is paid for In tn part parI d on wi page T Two 1 0 o s I INVESTMENTS MARKET GOES UP STEADILY Continued from Page Pace One by the tho higher yield Sometimes it 11 has been suggested that the tho bond bond- bondholder bondholder bondholder holder ought to have a voice In n the management of ot tho property on which ho he has a a lien however he frankly accepts this situation contenting himself with his lIs position as creditor as com com- compared compared compared pared with the tho status of the tho stockholder In any event the demand for bonds shows no Indication of being affected by the alleged superiority of common stocks over the longer period |