| Show RAILWAY A Y liST FEATURES WEEK Plenty Money Prevents Industrial Slump liT r 1 I 1 e lal Jorl ot or tbt 1827 1027 by Consolidated lIe Press Al A FW YORK Feb The 18 18 2 if I h hU ha been leet a II notable one In thet the t I n mArkn Speculation In rail rail- ro rall-ro 10 ro d s arell was wes of oC course tho tha In some flome re- re rop p the demonstration was WILlI wa more ni thAn limn anything that has o 0 4 BO o far tar this year with the Wheeling T T e Erie Irie Incident in the aIled corner this thin weeks week's pro pro- pro ding havo have been If It not so spec spee- spec lar much more Important For Foro Q 0 thing thins the market has hILS been broader It was not alone tho low and medium priced but the II 11 II l grade rade seasoned dividend a pay pay- pay J r which were svere tho he object oI ot of buy buy- buy ir lr It that at time times became bearne actually tel itel and resulted In numerous T 1 ord ord prices throughout the tho list widel widely widely- extended activity d dt- dt es ea Cs careful examination as to fundamental causes causee of the movement F Di T D At the tho beginning It Is s In order to o point out that present marl marketha et Ita Ia a a strong Irons Investment back ground This weeks week's eks prices for some at least le st of ot the better beller rail rall- railway rail railway way ay shares chares may bo be defended on th basis hasis of ot Investment merit It Itt t- t 1 not so much the return at pres- pres nt lit dividend rates that counts as asIt asIt asit It Is 19 the relation Of ot quotations to ii nines per share and nd the mar mar- In in ot of s safety which Is certainly with the built of ot tho the rail rail- railroad rood rail road stocks than it is with the util- util util-Iti util iU ti s IS of o equal rani rank Comparison with Industrials can can- cannot cannot cannot not be made on the same basis for Or the reason that there Is I aio h similarity as a there Is between Ani an utilities In other words word U It does not need special develop developments ments In the way of ot mergers or or to justify prevailing en ell for such lIuch railway stocks as Union Pacific At- At Atchi chison At-chison chi chion on Chesapeake Ohio and others In the tho same general class This much admitted It Is still true rue that most of the buying of oC oCr r d shares this week has been founded on an entirely different t t ot of considerations I Investment l ue offer oHer no stimulus to speculative e Imagination On the other hand the belief that one or more rat flat railway y systems were pre pre- preparing pre paring II to acquire either by alc ate negotiations or in the tho open the shares of certain small email C lines lilies is enough to encourage a bidding up of quotations which easily be carried to danger danger dangerous ous lengths II I I Undoubtedly there arc are Important n w alignments in process of for for- for formation mation matlon In the railway world ant an i time Dale o of them will result In en lu t the te e value of oC the shares but the tho Investor or the peculator who simply rides along Ith the tide Is taking more than thai h hi- hi usual risk The only prudent ourse Is to base commitments on Jues lues regardless of combinations lual or potential While all alt this buying has been e on in tho railway list tho Industrials Industrial have presented a rag- rag jed fd appearance Motor shares sharell In particular pa from time to time have n hen ben under pressure an and little head y lias has been ben made elsewhere et ee- eeC f cx-f C pt pt lt in Iii certain special Issues In the market has been moro more of a t two sided affair than a casual survey sUr would Indicate Of Ot course all that this signifies dignifies Is III that there is 18 doubt about the trade outlook In Inc inC Inc c Industries a tl that will not be cleared up for a month or more at least Meanwhile the money supply acts as II a abar abar bar har to any major decline In the In- In Industrials In Industrials just as It has baa served to accelerate the rise In the tho he rails A AC AC Ac C condary reaction would not bo be surprising whenever technical con con- con conditions invite It but bat without some of Increasing credit stringency rny ny extensive fall In prices I Is Im- Im Improbable improbable Im Improbable probable 11 MOM IN JS SUPPLY the stock stoel market Itself I he drop In the quotation for call money was waa the most p of or the week Iek At 3 percentI per percent cent I 1 K II rate rato for new loane loana on Thurs Thurs Thurs-da da and 1 Friday the quotation wa was lower than anything since sineo 1 last June More Moro attention was vas paid to this evidence c of an abundant money than to the failure of the theY c v York federal reserve bank to reduce roduco Its count rate In In- In ad of ot money hardening as aa It might be expected to do s as spring It has hall ha easier also was put on the tho aller total taken up by Wall street Ie C re eale 1 In the lie s Os revealed bro bro- broa bro broa bro a a loan figures at a 0 time when i I turnover In tho stock market 3 Increasing The tact fact Is that th Ih stead steady Inflow v of gold 11 Is the und und un- un d dying influence In the money s rhe Che he bond market has liu dragged Ing all the week without making uch progress one way or tiLe the theo heo o 0 her New financing has lias fallen 0 r sharply the weeks offerings h I in tho the smallest of the year to datil It may estment do de dc md a a little time timo to catch up ip with II larger output earlier in the ther r 1 but It If the theory that money ho controlling factor In stocks Ii a resumption of oC the ad- ad inco ad-inco In bonds ought to be near at and As All it Is III the tho only bond ie- ie flies ues me that have ha showe 1 any life lifer lifer-i rT rl I u been convertible and income tiC lr which always alway move moo O c o or 1111 less with tocks stocks III he weekly trade reviews are Ole optimistic Duns Dun's review ro pe ks eaks of ot a further moderato moderate of demand In most basic industrIes with Ith the commercial presenting a a stronger Ip ct The textile Industry Is out s as s showing improve improve- ni no writ nt nt The rhe commodity market cotton cottonn f id the tho grains have adopted a awaiting awaiting awaiting waiting attitude most of oC o the time ending ding final action by the preel- preel on tho the called so-called farm Carm arm relief reller I ala elation 00 00 |
