Show fiord securities 1 ing to finance railroads assures development new york may 10 consideration of the improvement inthe investment situation as it favors the plans for new financing of tho railroad corpora bons continued to dominate specula tive sentiment in the securities market last wee there was additional that supplies of capital will be forthcoming on good security to i finance the of the railroads and obviate the embarrassments embarrass ments they have been under to carry on work necessary to the successful con duct of thear business tho promised relief from this difficulty Is of such importance that it has to overt ride the effect of some of the de dei i of a less favorable nature from the side of business and industry the allotments on subscriptions to the pennsylvania consolidated soli dated 1 per cent bonds showed an twenty throes both in new york and in london after due allowance for the high so cuilty of the bonds the attractive ins in s vestment basis on which it was afi and the premium bid over the allotment price before the bids were closed which prompted bidders to send in aver to secure the amount they really wanted the transaction was regarded as striking testimony to the recuperation 0 capital supplies the quick resale re sale by the underwriting syndicate at a good profit of tho notes wad corroborative evidence so also was the price realized for bonds at the stock exchange and through bond houses broadened moderately at the same time the coming union pacific bond issue is awaited with interest on this account as an additional teat of the stability of the situation the conspicuous place hold by the harriman pacifies in the stock market movement an J the large centralized operations by houses usually employee by interests largely concerned in those companies created an imbres rise in stocks was fos by those interests with a view to improving for the pending union pacific loan A bene control of the market by the great banking and financial interests in concert was supposed to bo exercised partly for the purpose of furthering proposed now financial issues partly with a alow to aid in restoring general confidence in the financial situation and partly from the conviction that conditions had mended sufficiently from the disorder of the ft nandlal crisis to call for a readjustment of values of securities on the basis of investment returns an am factor in furthering this alev was the action of railroad clala to bring about an advance in the rates or freight transportation extended conferences were held to this end and the project was advocated as a necessary step in view of the heavy shrinkage in traffic and the obstacles to an adequate reduction in operating cost to meet this shrinkage the policy of rate advances came in for criticism and opposition not only among shippers but from some of the railroad officials themselves making it problematical whether the plan could bo carried out athla doubt had some effect in checking the rise in stocks and causing hesitation in the movement the same criticism has been heard of the policy of the principal producers to hold prices where the stagnation in demand and the general course of prices of other commodities is pointed to as calling for reductions in prices to revive gnp demand th e money market has continued easy and reserves still accumulate in banks in spite of the withdrawals of government deposits by the treasury department the continued overflow from the treasury by reason of the current deficit neutralizes this action the gold outflow has been checked the bank of france having already effected a substantial recuperation of its holdings while foreign subscriptions to the pennsylvania bond issue and the new york city revenue bonds establish foreign credits against which to araw in the foreign market good crop prospects were a factor in the market although the government report was not as favorable as expected and inclement weather in the week following the period of the report had to be allowed for the low figure of the winter killed area was a satisfactory feature and the movement of the stock market after the appearance of the report was still strongly upward |