| Show securities and stocks and bonds move with increasing confidence new york april 26 speculative sentiment as reflected in the securities market last week took heart decidedly and stocks and bonds were absorbed with growing confidence and increasing volume the dominant factor in causing the improvement was the bet torment of the investment situation and the incident relied on to point this improvement was the success of tho pennsylvania bond issue it Is many years since a single financial transaction has been invested with so much significance as this pennsylvania operation analogies are drawn with tho lake shore and the new york central bond issues in the spring of 1897 which marked in a decisive way the re establishment of credit and the start of that growth of prosperity in the country which ran ultimately to unprecedented heights tho comparison offers some striking contrasts the issues were years 3 12 1 2 per cent general refunding mortgage and the par value realized for them was heralded as marking a new era in american railroad finance the event proved that this new basis of interest return on capital was not to be permanent and was due in large part to the prolonged prostration which had preceded it coupled with distrust and timidity oc capital which had prompted its hoarding and accumulated to a point of extreme redundancy alie terms of tho present pennsylvania indicate no such unwieldy plethora of idle capital tho forty year present bonds being sold to subscribers at 96 from which must be deducted the unknown bankers corn sensation pensa tion to arrive at the yield to the issuing company the pennsylvania bond sale however has had the effect of creating confidence that the revival of credit of the railroads set in and foreshadows fore shadows the arrest of the industrial and commercial contraction collateral influences expected to from this chief development of the week played a large part in tho stock market improvement the participation to the extent of half the new loan by the great banking houses of N M rothschild sons and barin bros co limited of has stimulated expectations of a widening interest on the part of a gain in investors in the new issues of american securities which are known to be im ril conditions may become propitious pit ious union pacific has been especially affected as its plans for a coming bond have been announced already and its making connections are loeb co through which tha foreign participation in the pennsylvania loan was enlisted ane heavy subscriptions for the new issue demonstrate on the strength of the banking in new york and the betterment in the investment position hiis tiis has brought announcement of other proposed issues of new securities and of their purchase by banking houses and a general impression of returning confidence on the part of investors and of re establishment of credit was caused hope was stimulated at the same time that industry would be revived with the supply of resources to the railroads to resume the work of construction improvement and extension interrupted by the financial crash last year tho effect on the securities market while marked has been sober and restrained and without symptoms of speculative excitement this restraint Is partly due to qualifying considerations ip the outlook the new financing while reflecting marked improvement in conditions over those of the recent past docs not indicate the full restoration of normal conditions either of credit or of capitals supply the conditions in industry and commerce also are not of sneering cne ering effect |
