| Show BOND MARKETS MARKET S ADVICE HALTS HAlT D By BYRON SELLER ELLER I Special ent ot or TalC Tto r Standard Copyright 1926 1326 Consolidated d Press Pre I Association NEW YORK YOm July lO The 10 past week has week has brought the advance In Inthe Inthe inthe the bond market markt to IL a a halt Dui Dur Ihs the first few days fas ot of ot- ot July Interrupted as It was by Uy the holi hoH- holt holt- day holiday prices held hehl fairly airly well nwe al d in fn some omo Individual Issues mostly thc of the th sort semi sort thew were substantial gaIns rain But But a feeling of o uncertainly de devel- devel developed trading felt fell oft off and Investors Investors Investor tors tor adopted a waiting attitude U ODlE CAUTION C C LUTION The only change chanso In the funda funda- fundamental tun l mental mental sitt situation atlon was a a 1 li 1 time money not 1 pronounced 1 but enough h to produce caution l e weekly l statement of ot the th f d- d deral eral reserve tJ li showed a c o n 1 argil In holds Ii ot ot h as yaa only partly offset of et by decrease In open market Tho rg r erve ratio or o banks b of 6 t the be h system y dropped percent per cent ton ton- compared p pared red with the high ot of 76 p per t er r t r Jun 3 and nd a low ot of per Ja January mt on 6 For TOI tho the Now Y York rk federal fc Jeral r reserve bank the tho ratio touched touched the tho lowit figure of o the year Sear yarto to date There There Th r teemed io a bp-a that belief at demand for tor funds for r lil purposes e was on o-n o the tho Increase and an that bond pIlo prices s for tor the nio were re nigh high How v fir fir- this reasoning will 1 b ho over over the li longer period lS ti another r matter prices s show Y no sis s f 4 go Ins higher harrand nd will act aclas as a support to bond quotations V 11 I informed do do not riot an ani i ate any larger cr reaction bu on the he other othor hand fland tho do clo rot t care to load bond sor- sor t I ho hot sake Boke profits ot of possible Ie speculative prof its STOCKS S V Vt BONDS One theory s has hail gained w vt d de e acceptance l aced p Ln ln In Wall Vall street t I a that hat pert part ot oC th tho ho strength In hie grade st cl's clis cli's In n past month ot ok ott otO t O ll hn n l due e to the th turning It bf of investors away a away ay from bonds 1 which they the are aro no longs attractive n on a yield basis fa 11 other ds tho buying In such h l aI stocks stocks 15 4 States and New ew York Central has ha been com com- com J In ht part st t least from former forme purchases purchaser Feeling reason ally confident that hat dividends would woul be maintained at present rates If inot not increased th they y hove have been buys bu buy nc stocks Instead of ot bonds even evel when the yields on the stocks not mUch nuch than on the bonds boud's ItI It is Is very hard very hard 6 to t trace ant all such n movement to Its or orto orto to speak l ly about tho rho mAtter bul but uL doubtless thero ha has n of this kind coinson going on n Probably t It has been true truo more Investors of 1 11 ut 1 buyer buyers the latter n themselves t td fh fixed d interest bearing t securities OCE Hn ANCE r It this of the tho the char aster acter or br tb the huy ng In Investment is c correct It will wll not net fol lov fol la low v prices price up fecklessly An Any ad Vance wll bE orderly and nod limited by the status actual ox or If It thoro thero th ro Is any laUve excess e eel s the th Investors vestor now bAylog will wU turn back to lo bonds bond un An and they hey will surely do that tho the s oil stocks gels Iet down to a 0 bawls blas comparable with that t to be b hadon had h O V bonds Ith In III Is eon It Is to note tho the In the high grade d stocks stock This III t c th case thu-case u cant t the th e pre pre- preferred preferred shares share it f tho Iho electric light ap nd 1 power ewer companies dealt In over the counter by dealers deal deal- dealers dealer er ers do rot not tell the ho whole story Such electric ight and power proS pro preferred tret stocks aio much easier esler to sell ell than hair to buy and Anti for most 11 or of thorn them the oU p at current level are arc very very sn small All this points to tet the UIt strength of the In investment In I vestment ve tm nt m met ret rs liS a a whole whether her It je re e bon bonds stock tock or l stock tock BO iS The The Tho situation In foreign bonds I to unusually unusually- Interesting just lust now French Frei eh Belgian and Italian ex- ex cx ex dl changes have hav I fallen tallen this week t to re record lows 1011 low There Is nothing nc new about the de la to these o pa- pa paper p per pr r currencieS or the reason there there- tor for It Is li only orly another nother stage Kate tia lit 1 lita a movement ha has been Jo- Jo t Ins KO-Ins o ing on for 01 a long lonii tinge No Now fOI forthe the most part olar r bonds bl bonds of dress countries traded In ill on this side aIde have have moved without retard regard to Chine us-Chine er change Prices have sagged front from tint to 10 time Ume but not In any Y degree corresponding to the slump In lh th th- th So So when In he latter laUer part of o th the week a movement mO appear appear- appeared ed od In tn Frenca bond bonds It tt Is la not reas reu- reasonable to ascribe a I H It solely to the tho renewed decline of ot the franc Probably that hat hat had something on to do alth It tt but It may also allo have hav been boen the result of the th delay of French ratification of t the th war Ill debt ro roo root rc t agreement and of concern over o the Increasing evidences or of 1 1 rench resentment at the tb Ameri American can Clin stand on the th whole war ar debt proposition Elsewhere In ibo ho foreiGn group contrary Influences have hD been ut at work ork Less Le s confidence Is felt inthe in the general European situation po- po political po political and The Th only ex- ex exception ex exception concerns te i ic German out out- outlook outlook outlook look which la is I still regarded retarded favorably favorably Some of or the th German ob ob- ob however howver reacted toward the close of of the week but that J l by the recent rapid rise South American Obligation continue In 0 food 1 decor dem nd and yield are slowly r lof Summing It tt all up the Iho surprising thing thine is l I not that there should be doubt doub about bout foreIgn Investments but the fact that the thc hit have hav VO been tI absorbed In such tuch extraordinarily large larco urn vol-urn vot voll ume as they hey 1 eve Ue iv |
