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Show RAILWAY BONDS ' LOSE STRENGTH Anxiety Over Action of I Congress Believed Out of Place L. By BYRON SELLER, special orreNpondent X The Stand-i Stand-i axd-Evamlner. 'Copyright, 1922. by The Standard- Examiner.) ! NEW YOIIK. Nov. 2 5 The decline which came when th bend market .turned downward last AuffUBl and September now seems to have run Its course. Prices for prime issues appear ap-pear stabilized for the pr.-sent at least-he least-he reason generally ascribed for the decline was the doubt a.s to the future o. money rates. There is now no expectation ex-pectation of any material advance in quotations for time money The .second factor materially to af-1 feet the marke t wa. liquidation on tho I part of banks of securities bought a I year or so ago, when demand rtr iiuuua ior DUSinesS purposes was at a minimum This liquidation for a time was Very heavy and -prle.-H suffered correspondingly That, too, appear to have run Its course for the present I Next came, a wave of pessimism as to the stuatlon .abroad. Doubt as to the ahillty r.f foreign governments to I meet I'lcur obligations was freely expressed. ex-pressed. The decline In pr.es for foreig-n bonds, became acute. Here, too. the pressure has been lifted tem-Iporarlly tem-Iporarlly at least j This week, a new influence has jcome into the market for Investment securities. It is fear as to the attempts at-tempts of the radical group in conjrre-s I to modify the transportation act to bus 'letriment of the railroads. The I effect has been very plain In the stock market, but bonds have not been ex-jempt. ex-jempt. Isues so well secured both by. I property value and earning powei that no conceivable decllr,.- In" net Income jwould affect them are, of . oursc, un- ' '.hanged, but the great majority ofl Ht.cond grade and speculative issues have been in disfavor for the same, .reasons that brought about tho selling of railroad stocks. I HEAVY STRIKJ; COSTS. Investors look to dividends on omen. as a margin ..r safet for continued con-tinued payment of Interest on bonds. Most states make dividend payments on stocks a qualification for bonds legal for savings bank9 and trustees. Any development which threatens the .railroads as a whole has a disturbing effect on the holders of railroad bonds And even If the holder does not care I to sell he certainly is not ready to buy .until the outlook becomes clearer. It (is perfectly true that there is llttlf likelihood of any legislation adverse to railroads until the new congress met but the discussion h- the leaders of the, so-called agricultural bloc as to the Imperative neecs-sltv of a reduction reduc-tion In rates has its ei'fect on sentiment. senti-ment. Then. too. the revelations as to the enormous ooat of the strike to the railroads lias been disturbing It was i shocK to many inventors to hear from the president of the Baltimore & hlo that the cost of the strike to rhat ro-id vas b.-tween $ 1 O.noo.OOO and $11,000,000. The usual crop of rumors ru-mors as to the flnanc.'a! condition of th weaker roads has also leen in evidence evi-dence all the week NEEDLESS ANXIETY. Probably all the rumors were baseless. base-less. Certainly they were promptlv denied in all cases where they bud - rept into print. But the cumulative result was bad Nor did figures showing show-ing regular curloadlngs and generul business improvement serve to counteract coun-teract the prevailing feeling. It must bo remembered that all this talk about prospective trembles for the railroads I was superimposed on a bond market I which h-d been declining tor months Now ail this Is entirely illogical. Not even the radical leaders) In congress are going to dcidroy the value which protects good railroad bonds. Government Govern-ment ownership and operation would not do that. And some d.-.y the lead-!ers lead-!ers of tho agricultural population will realize, even if Lbey do not at present, that neither the farmers nor any one lelse can be prosperous if the railroads jare not allowed to earn enough to pro-ivlde pro-ivlde themselves with adequate eejulp-Invent eejulp-Invent to meet the transportation needs I of the country. BUSINESS MOVES AHEAD. Also, If the other factors which have adversely aflected quotations ould be removed and the general course of the whole market be reversed, re-versed, the prevailing une.r.nlneus aj to the rRilroads would likely be dissi pated. Meanwhile if we get away from the j atmosphere of the security markets; the business outlook continues favorable. favor-able. The. wholesale .Jrygoods trade continues active. Automobile rnanu-facturers rnanu-facturers are preparing for record business In the spring. Tho department depart-ment of agriculture believes !t possible to wage a successful war on the bed I weevil. The cotton grower Is marketing market-ing his product steadily at prevailing1, high prices Many corporations are Increasing dividends. Credit is avail" jble to merchants on reasonable terms. The trend of prices is upward which always breeds optimism. Tho d( mand for labor, especially unskilled labor, Is Increasing Probably some attempt Will be made to modify the present immigration restrictions. While no boom is In hl.?ht, neither is there -ny indication of a depression FOREIGN BONDS HIGHER Opinion us to the consequence ofl the attitude Of America toward Eu-1 rope Is otlll very confused it can hardly be said that the visit of Clem-1 enceau and his speeches have helped much Many foreign bonds have held ,he gulns they raado last week. French issues improved their position. It Is an open secret In bond circles that powerful interests have come to the support of eortaln foreign obligations. It Is Ptlll true that extraordinary high yield rewards the investor courageous enough to buy and hold foreign bondo. SUGAR. N,VV I IJltlV. .OV. id. ilic sugar market was firm and c higher high-er with spot Cubes quoted at 4 00 cost and freight, equal to 5 78 for centrifugal, The raw sugar market was flrmor, aad prlces at one time showed advances ad-vances of three to five points on trado buying, but eased off near the close under realizing. Closing December. De-cember. 8 95, March, 3 52, May. 3 64; There was only a moderate Inquiry lor refined sugar, but prices were firm and unchanged at 7.0007.10 for fine granulated. Refined futures, nominal. LdBERTY BONDS NEW YORK. Nov. 25 Liberty bonds closed: First SMi's $100.06: first 4 s blank: second 4's blank, first 28.24; second 4U's J97-72; third I 4 V $98.2e; fourth 4Vo $98 06; Victory 4 -$100130 tuncaltcd); $100.06 (called); U. 8. treasury 4 Va $93.40. RANK STATEMENT VFW STORK, Nov 2 5. The actual condition of the clearing- house banks and trust companies for the week .hows a deficit in reserve of B.BCS.OIQ This Is an Increase in reserves of $14,-074.880. |