Show MARKETS HOLD IMPROVEMENT I Foreign Affairs News N Wields Its Expected i Influence By Dr BYRON D SELLER SELIEn Special Sp of 01 The Tho Standard 6 J tam I nr Copyright 1925 1926 by The Consoli Consoli- Consolidated Consolidated dated d ted Press PreS Association NEW YORK Aug 23 Taking Taking the market as a whole Investment securities s have maintained during tho week Just closed the Im Im- Improvement Improvement im- im improvement provement of ot the tho week before Trading has been very quiet but i there has hns been no pressure to sell and a fairly good Inquiry from financial l The backbone of the tho demand Is from the tho insurance companies and tho the savings sa banks who were care caro- careful careful ful buers buyers and never bid up prices on themselves Still It may be said that no concern has been shown over the future of money rates such uch as aa was In evidence eo earlier In the summer The feel teel- feeling feeling ing is that bond prices will remain reasonably steady even If It there is a II larger drain upon the money supply for tor commercial purposes TWO T REACTIONS S The news that might be ex ex- expected expected to influence the market has related mostly to foreign af at- at fairs Most ost Important was the I tentative agreement between i France Krance and Great Britain for tor the funding of ot the the war r ar debt of ot the former to the latter About this I time there was varying opinion The first reaction was the better feeling toward French securities I maintained In jn the market markot for tor French dollar bonds Later some I doubts appeared and fluctuations fell tell off ott slightly The fact that the generous treatment which Great Groat offered to 1 France ranee was was' contingent upon similar conces- conces concessions i by the United States Stales caused some hesitation Probably the I Ivie view vie of oC the majority was v that the problem of ot the international war I debts at last was In the way of ot I being solved sol and the tIme way would be cl clear ar for tor new foreign financing I In this country It Is La the general understanding that once Ice a satis satisfactory factory arrangement has been made mad with the United States on the tho debt question new loans for tor forthe forthe I Ithe the accounts of the countries con- con concerned i corned will be asked of ot American investors The Washington au au- authorities auth au- au auth I th who have frowned Crowned upon I anything of ot this kind prior to the debt negotiation n it is expected will be favorable and certainly I Ithe the bankers aro arc ready to extend I Ithe the desired accommodation More- More Moreover Moreover over a II better market for for 1 for for- foreign foreign I eign bonds as a n class will wilt Prett surely follow tollow u. u J S. S ILlS S MONEY MOMY I Now It cannot be denied that I with the burd n of payment on ur f fIO rn I account u of international n govern govern- government government er ment obligations assumed new I funds must be secured and that I the United States is I the only place to find them It may also be I granted that the credit standing of our r foreign debtors d OS will bo I ag ld I raised Is when w they have hae agreed to discharge l their obligations O U In Incurred in- in incurred I Sr during the war wui I and just j afterwards All these thes considerations I however will viii not relieve I Ithe the tho individual investor from Crom the tho risk involved Agreement to pay I is not no the same came thing as pa paying ing and both Franco France and Italy to sa say sayI I I nothing of Belgium have a long longway longway longway way to go before they 1 i themselves them elves upon a a. firm financial lal lalI I foundation I It t Interesting is tho the intimation I II m I from abroad that Germany may have to ask additional I I dation If it she is to meet me t the re requirements re- re of the Dawes 8 plan both German municipalities and andI German industries are band bandl- bandli I- I II I i capped by the tho current high money rates I Up to the tho present relief has 1 been found mostly In short term terne i credits in London and New York Attempts will be he be made to substitute lute tute for tor this kind of ot accommodation tion Uon long term loans and with the bar still up against capital ex ex- export export port from England tho the only left Is III America To meet meat these demands will 11 be beI I good 1 ss but bul here too the th I American Investor will wil have to I II protect himself He lie will wiit have to toI I I consider his lila and pre pre- preserve preserve serve servo a a. proper balance between I the Hit foreign and the domestic com- com comI I if his own Interests are areto areto areto to be best served r cd H. Turning to the homo borne field the railways have been snaking malting a u. serIes of ot remarkably good earn earn- earnings ings inga statements this week Grail Gratl- GratifYing earn I increases In gross Income havo have been heen accompanied by still stillmore more pleasing additions to net neL There have been exceptions but they have been duo to causes which do not affect the industry as all a Do whole A good deal of ot this Improvement has been discounted dl In both the tho stock and bond mar mar- market ket but not all Particularly is Is this true of ot the Junior bonds which a a. few years ago ugo were on the ergo I Pf ot financial lal difficulties I There has hall been a 0 striking re- re recovery ery covery in New England Ingland high terminal coats costs and anti motor truck competition arc are so great greata a 0 handicap rho Tho that the tho southern roads have havo been ben making are arc matters matter of ot knowl knowl- edge edgo In the northwest the tho out out- outlook outlook look Is U not so clear but it is certainly no worse That tion depends depend upon the tho he result of oC the application for higher rates rate and upon what In III I done about the suggestion of ot the St St. Paul re- re celver for tor a pooling of the In Increased In- In increased creased earnings received from these the e higher rates ratu The other railroads are against the St. St Paul the interstate com con commerce commerce plan What merce commission lon will do can cannot cannot cannot but Intense In- In not be predicted terest is shown in tho the hearing hen ring scheduled for tor next nn |