Show INVESTMENTS HIT HIGH MARK Upward Trend Gathers at End of Week By Dr BYRON SI-LLEn SI SELLER Special ot of The Examiner Copyright 1926 Consolidated Press Preen ASSociatIon NEW W YORK April At AI no notime time Ume this year yur has hag the Investment market been so strong as aa it w this week At no time has hu there been such euch Impressive buying of high grade trade bond bonds bonda evidence The upward trend was wu In evi evi- evi dence all nil the weeK but It gathered momentum at the end when hen not only the called so-called legal bonds but Bound Investment Issues issue which do donot donot donot not quality qualify as ae bank holdings holding joined In tho the ad- ad advance ad advance vance Even en some of o the foreign obligations obligations rations about the the security ot of which there Is no reasonable doubt were vere In active demand The tini iwas Was drawn only at the point where the speculative feature nas sas Involved ed The scope of ot the tho movement may be maybe better d understood If a few u cx examples ample are used Take lake three bonds which made new 1926 1328 high record ecord San StI this week Atchison general 48 St San Louis Francisco prior lien Hen A 45 and Commonwealth of Austral la Ie Ia te 58 EXAMPLE The Atchison Issue represents the highest degree des of ot security avail available able In a railroad mortgage It Is commonly considered the leader In its lt group It Is a a legal Invest Investment ment tor for savings ravings bank benk In practically practically cally all the state states It ft sells to yield well under four per cent Fluctuations In Its market price are governed entirely by the cur cur- current current cur current rent charge for tor money and the tho outlook for tor commodity prices and not b by the prevailing trend In the earnings ot of the Atchison railroad Bonds of ot this type are always alwan the first to respond In a general ad ad- ad market The St St San Louis Francisco ob obligation i Is In quite a a different class The bond Is well secured by property value alue But It Is only oni In recent years that earnings have been stabilized at a sufficiently wide margin over fixed charges charees to satisfy the requirements of ot exact exact- exactIng exactIng Ing bond buyers It l Is only with within in a comparatively short shori time that the common stock has been put l L upon a dividend basis In other words I this bond la Is th the obligation ot of a a corporation with an ImprovIng Improving Improving ing financial Outlook which every promise ot of being permanent RANKS niGH The Australian bond ranks rank high among foreign loans The market rates It Inferior Interior only to Dominion of oC Canada and United Kingdom obligations But interest and principal on an Australian bond are for all aU practical purposes just justas justas justas as well ell assured as they are on the obligations of ot either pt pf the theother theother theother other two countries Moreover the Australian Issue carries a five per cent coupon and sells below par and and five per cent bonds below par Spar as secure as these are no loner It will be observed that there Is nothing of o a a speculative nature about either of ot these three issues It Is true that a 0 good deal ot of the th buying this week probably came from dealers who expect to retail the bonds later to Individual In- In Investors In Investors vectors but this does not take takeaway takeaway away ay any or of o the significance WILL WUL CONTINUE CO It Is hazardous to forecast how far Car any such any auch movement as this will go but at least It can be said that all fundamental conditions favor continued strength In pure Invest Invest- Investments Investments ments mente The downward trend In com corn commodity prices has been sized In lit this this correspondence In previous letters letter This week the influence which was most potent was the tall taU In rates for tor time money to the lowest since la laet t autumn Probably a a contributing factor was the let up In stock speculation and the diversion of funds from that market to Invest Invest- Investment Investment ment bonds A change is possible In any of o these quarters quarter or all 1111 of olot or of them but at present It H t looks unlikely Then too there is al ai ways the theoretical argument In favor ta of ot a long time advance In bond founded rounded on the historical precedent of or what hat hat has always hap happened after arter great wars wan In the field ot of foreign affairs the most development ot of the week has baa been the state state- statement statement ment ot of o the tho American section ot of the International Chamber ot of Commerce on the situation In Ger Ger- Germany Ger- Ger Germany Germany many as it effects the private dol dollar lar mr loans floated In the United States It Is estimated American investors In have absorbed In the tho last year ear or so 80 about In inGerman German corporate and government offerings offering The question Is now raised formally s s It has been casually for tor months past put how the th exchange Is to be secured tor for the tho th service of ot these loans 4 BONDS GOOD The problem will not become becom pressing until 1928 or 1929 when the German balance of or Interns International payments under the Daes plan reachel reaches th the maximum The market for tor German dollar bonds bonda p paid ld no rIO attention to flu this analyst analysIs and as al a matter or of fact t ct the eco ceo economic situation In Germany In re recent cent months month has shown marked maried Improvement The chances chancel are ar that Ion long I before the time comee this difficulty will have been ur sur- sur surmounted surmounted mounted T Two o pieces of ot new hew financing this week have commanded commande l unusual at One wu was wa the sale eale ot or 25 City ot of Philadelphia mu bonds bonda to yield the Investor per cent This Is Higher than the New NewYork N York Tork City Issue retired In Feb yuan but It Is the i to the borrower to Indicate strength of ot the municipal bon bonS i even under the reduced I The other was Wall me ene i I IThe Electric 5 which was the largest el electric light and an power bond Issue on record Aside front It Its size lie the feature about bout t this offering ottering was waa the Progress It showed toward a a simplifying of othe the financial structure of ot lars large l holdIng companies |