Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 13, 1925, Winnipeg, Manitoba of 12 Manitoba Febee april 13, 1925 Dodge Deal centres interest on whole Auto Industry which whirls into second Quarter of year at great Pace. Of the us Lluc Trade and Commerce markets Bond Market is very quiet but forthcoming big Alberta is expected to revive interest and activity. V i if of f i a to to a bom Market is Idle Awai toc Dehate Lead the traders viewpoint Clark Martin co., 232 Portage big Alberta Fesce is expected soon and Opi Slos expressed ibis will so Navaie and Irviv Toronto in to blah from movements and to str rms Hen Frist five or six weeks the has probably the past Welc witnessed a. Very in interesting Market Tho Only important of the week being on tuesday aps i when the entire Market rallied Laap a. Tho Industrial average Udvanc is Faity two Points on rather Largo volume oui this is an far As they wont. Tha two following sessions were of a very Dull Ciui racier moving very cautiously Between the Range of the Higl of april 7 and Tho Low of april 3. Thil cautious attitude is characteristic of a preparation for a. Sharp move either one Way or the other. Owing to the fact that the industrials have declined approximately 12 Points from their and so far have rallied Only three i Points from their lows it would seem ios Scal that the move should o. Higher Levels and the Market of issues action during the last ten Days seems i to confirm that. Bearish news seems have lost its Power the volume Pas week t away on every decline and on a record so pressure practically every group be motor Industry enters period great activity a Load of beets Fren f rns activity is concerned in the the i comes Dull. It can then be justly sail j that the recent decline has placed i Lihi Tyk Clit in. Exception of one or two municipal is stocks a Strong who seem to tics in the province of Quebec no Bond have More than Ordinary Confidence sales were reported. The general trend of prices has been much the same As Ovar the past few weeks. It is to be noted that the 10s4 Vic tory loan has slipped Oft to a marginal extent. On the other hand the Lonser discount Dominion government issues remain much the same us to Tore. So there is no consequence attached to Tho a Tion of the 193-1 a. In fact. Puhst Nathai portion of the Bond business being done today is in the in Tiro of trading out the holdings of clients which they have had for some time and on which they Are now Able to realize a profit. This is particularly True of Bonds which arc quoted at a Premium and the argument used is 16 take their profit and at the same time re invest in longer dated discount securities at a substantial increase in the principal value of their holdings. Thile the ultimate yield to Tho private investor is the same on a discount and Premium Bond which he purchased o the same basis. In the other hand the average sea investor is reluctant to Purchase Premium born is in the belief that by pay ing say 102 and receiving Only 100 of his principal at maturity he is actually reducing the amount of his principal holdings and the higher Coupon Rato not seem to be sufficient compel pation to offset what he considers the disadvantages of a Premium Bond. More activity looked for. There appear to be More issues com ing on the Market in the next few weeks the most notable of which Are 53.740.000 province of Alberta 25-year fund 5 per cent Bonds for which alternate tenders Are naked for payment in Canadian or new Tork funds. Also Montreal Cath Olic school commission 20-year 5 per cent Bonds payable in Canada or new Toik. It is a number of weeks since uts Amial issues of this nature have been lilt posed of and if the Bond.-, come to this Market at the right Price and Are disposed of quickly it May be that this will have the effect of acting in the nature of a tonic to the borne Market and reviving interest in those issues which Are at present out stand in the new York Bond Market has not been any too Strong during the imme Diate Post and while five weeks ago it would have been Safe to predict that the above issues would go to that Market under present conditions it is quite possible that Tho Bonds will be disposed of Here. For the last Issue. A week of City of Van Couver on which alternate tenders were asked the spread Between the and Canadian bids was so Small that the Canadian tender was accepted. While the Market has been very quiet for some time with fractional Price changes. It is a condition of affairs which is not. In the Ordinary nature of things. Permanent and it would seem that the next week or ten Days should see a definite trend to the Market whether downward or upwards. With the majority of dealers favouring the latter course. Changes Are proposed in n Alta. Tax recovery act Edmonton april 12. Numerous amendments to the tax recovery act designed to meet the situation arising out of the noted. Pelletier versus Muni Cipal District of Opal Case live been prepared by attorney general j. E. Brownlee for submission to Tho Legisla Ture. The most important change in the act is an amendment to Section 10, to do irling registrars of land titles offices to Send notice of the filing of caveats under the tax recovery act to Regist ered owners caveat Ora and the Mort encumbrances re 92 of the land s gees and other t erred to in Section titles act another important change requires advertising of notice of Sale in the Alberta Gazette at least go Days before Uch Sale. Canadian National Gross earnings Are less the Cross earnings of the Canadian National railways for week ending april 7. 1925, have been be ing a. Decrease of Over the Cor responding week of 1924. The toss earnings of the Canadian National railways t rom Jan. 1 to april 7. 1325. Have been 555.505.s51 being a decrease of Over the corresponding period of 1d24. Joins Sovereign life staff that the Market has yet to have a very mll5r. Railroad stocks the Railroad Section showed still less activities during tha week ending april u than the previous week tha major Ity of stocks remaining stationary working within a very narrow Range. The encouraging feature is the Low volume of trading at the present do pressed prices. The analysis of the movements of this group reveals interesting features. On oct. 15 the average As recorded was s5. They advanced to the High Point of 101 i. Reaching there on Jan. 12, or in precisely three months of unprecedented Advance on volume never before equalled. From that Date to March they worked within a Range of Points also on Large volume but Noth ing compared with the volume during the Rise. Prom March 3 to March so in less than 27 Days they declined precisely 50 per cent touching 92% on that Date. It is evident that from the Market movements volume that has taken place so far Railroad Stockn have not been properly liquidated that holders of that class of securities Are viewing the recent decline with equanimity and Are satisfied to hold the bulk of them. Considerable amount of fluctuation within a narrow Range is Likely to continue which will be characteristic of accumulation preparatory of a move of substantial motor stocks the motor group last week was the most Active of All. It is the Only group where tha average has practically re covered the entire decline some spec Salties even making new highs for the year. The great activities of this group is due no doubt to the covering of a Large Short interest which was feeling rather on account of the Large merger that was taking place Mack truck during the laut five Days has been extremely Active but has Only moved within t narrow Range the Stock is no doubt meeting with a in Iro amount of profit taking after its Raj cent Sharp Advance and a. Considerable amount of fluctuation will have to take place before a decked move will a Ain be underway. Studebaker also to within a fraction of its old High. The character of buying is lot of tin kind to inspire great Confidence. General motors has rallied four Points from its Low of 6s. It has however. Dodge Deal throws limelight on whole automotive Field smaller priced cars in big demand specs no a Tours despatch to tree by free Frejik private wire by Todd w. Wright new april is doubt Ful if the Automo bile Industry Lias Ever experienced such a Large share of the financial As it is now following the record i breaking achievement last week in the financing of the new Dodge Bros. Inc. While the Industry was. Running at very near top rate it took just such a huge transaction to most people s eyes to what bids fair to to one of Tho most profitable years in its his tory. Rumours that tha acquisition of dose Broa. By Tho now York Bank ing so a Ducato of Billon read and company is the nucleus of. A Gigan tic merger will not Down despite More or less emphatic denials on both sides by the parties involved. These rumours have turned traders attention to the stocks of various motor companies which for the most part Nave been lagging behind the Market. Industry moves faster the motor business in funeral is whirling into the second Quarter o the year at a Pace Seldom equalled and the conservative production schedules made the latter part of last year have had to be revised up Ward. A. Scrutiny wag on Load of beets containing 13.3101 pounds delivered to the Dominion sugar company at Wau Aoe Burg ont. Tho beets contained 16.1 per cent of sugar or about pounds. The total weight behind the team was pounds. Of use fled disclosed one significant phase of the Situa impetus la being Felt chiefly by those makers producing cars that sell for and less which includes a portion of the coach and closed car output. In the higher priced fled from and up the schedules Are classes Only fair with the possibility of increases to capacity or near it be fore the. End of this month. On the production Cost aide the Heck in the adva Jice of general commodities and More especially failure o the steel Market to and Vance is decidedly in favor of the motor car manufacturers and will assist them in operating profitably following Tho Gener ii reductions inaugurated at the beginning of year. The taken Over ten flays for it accomplish that much and nothing like us had buying seems to be behind the present movement. Chandler motor continues to be accumulated the Stock moving Forward very slowly but All purchases seem to be made at constantly prices. T Oil stocks Oil stocks carried on the Good wort of the previous week reaching the top of the rally on april 7, but they failed o Advance further. Some of the issues Ell Bank rather sharply but the majority maintained their Best level giving Tho group As a whole a very erratic appearance. The group average Lytic rated within. A two Point Range on much lighter volume than the previous week. Their actions for the present does not indicate that materially lower prices can be expected. The recent decline has More than shaken ont n speculative molding so that Al stocks As a group Are in a position to a the rally. Pan american foundation for a. Considerable the most Active of the group during the last three weeks Las been very quiet and has fluctuated tween 74 ant 6 for the entire week its action is Lirt cult to Analyse and rather indicates that it May have Ito ook for lower Levels before substantial buying Power will develop. It is the Only Issue that has so far failed to follow the of the group. Sinclair Oil after advancing sharply from Tho Low of 18 to 20% retraced its step sharply losing its entire Advance n less than a Day. Martand Oil recovered exactly 50 per cent of its decline and has so far Man aged to maintain its Advance. Pacific Oil also gave a Good demonstration of strength persistent buying appearing from the 1st to the 7th month advancing the Stock Over six Points during that time. Steel stocks the steel group was very quiet and still Down to the lowest Point of the decline. The group average is hardly a Point from the lowest reached on March 30. It seems hard to understand the reason for that action. It is now practically the Only group that has not bad a rally since the recent slump United states steel rallied from 11_. To 116% on Short covering but slipped right Back to the 114 level acid so far Haa failed to get out of it. Bethlehem steel has fluctuated now or exactly 15 Days Between 39% and it looks like accumulation for decided move. Crucible appears to be in the Posi Lon. But it exhibited weakness on All bulges. Republic steel is the Only one of. I group that lower ground. It resents a decidedly weak appearance. Equipment stocks the equipment group have failed to maintain their leadership and volume. The drastic decline suffered by that class of Stock has no doubt put them in a position to be responsive to favourable news but so far nothing like a Normal rally has taken place. Enormous increase in social service expenditure in 1923 great Britain expended s338.319.000 on various forms of pub Lic social service to. The comm Unity. This included health insurance unemployment insurance War pensions old age pensions education reformatory and Industrial schools the Reform of inebriated Public health housing poor i Relief lunatics and mental deficient. An official statement and transmitted to Achord intr to just published Bankers Trust company or new York by its British information service the expenditures for similar purposes in 1s31 were in 1001 in 1911, and in 3521, these Are the expenditures not Only from parliamentary Grants but also from and from receipts from except borrowing. Local taxation All purposes car in jugs me Smyj decrease drop is chiefly in f pulpwood and its products com Ulm j resin despatch Ottawa april oar. Load Ings continue to decrease on Canadian railways. In. The Wank ended april 4, 51.39s cars were Loadell. In Tho preceding week and in the correspond ing week a. Year ago cars. The decrease was chiefly in pulp and paper Ana other Forest products. Grain loadings picked up in Eastern Canada but fell off in the Western division. Oil drilling activity begins in Turner Valley april least four new. Wells will be drilled in the Al Berta Turner Valley Field within a half mile of the no., 4 Royality the affiant wet Gusser that is still producing More than 300 barrels of High Grade Oil daily. Are now on the Way from Texas for the drilling of two of these Wells. A luna5r. Managing director of the Advance Oil. Co., has Pur chased 80 acres of. Leases near the no. 4, Well on behalf of the Oil men from the Southern United states. This is one of the most important deals that has been made in local Oil circles since no. 4 Well came in with its tremendous flow of wet Gas last fall. Money at work scientific management of currency Mist replace old system says Keynes american. Bankers decry Keymes scheme but United states would be benefited while great Britain might not reap Benefit. New York stocks we Clark Martin i. Co. April 11, 192s. Close open High Low bid a Cropper an. Smelt. _. Sm-14 9414 Anaconda 38% 38% 38 Cerro de Pasco. 45 45 4 45 Chile Brief but important Lenons in markets investment Money Market ing and figures. Investment arithmetic equals a Dollar is like an electric Battery t you try to take too Muffi out of it a Short time Down. Likely to. Break a Good Battery last a Long Timo and give Depe Dabila service unless too much of a Load is put on it. 4. Dol Lar will last indefinitely and give excellent service if used rightly but it too will break Down if an attempt made to draw too. Micil Short time. In from it in a the average Dollar is perfectly will ins and capable of Sfingi you. Four to seven cents every year up fever without growing one bit smaller. Don t be Lite the Man who wiled tie Golden egg Lay ing Goose and try to eel too much out of the Dollar. All of this is another Way of saying flon t try for too High a return on your Monsy because of the enormous risk entail Oil when you seek More than a fair it tej of return. Copyright 1325, associated editors. The haste with which the economists of the. Great new York Banks Rush into print to refute tha Raan aged currency theory ack truck. Iss a Gold Tuvae de monetized by almost the last country to do it lip sen ice. For the past two years the United states has pretended to maintain a Gold Standard. In fair it has maintained a Dollar excess Gold causes alarm these words written two years ago in his Book monetary have been borne out by a recent statement of the president of the City Bank of new who says the Large surplus reserves of the Federal Reserve Banks undoubtedly hold pos is Bill tics of inflation they Are in excess of our needs. If a movement of inflation were once Well started thera is reason to fear that it would go too far. The Reserve authorities Are however Well aware of the danger. And doubtless will apply such remedies As Are within their chief among these remedies is the discount rate. Since these words were written the All important re serve Bank of new York has raised _ its re discount rate. This was an in j Hudson portent contributory cause of the violent deflation of Stock Exchange values which. Has taken place in the last three weeks. A further error of Keynes s critics is that they look upon him As the sole supporter of a mad doctrine. Yet a is in substantial agreement with such orthodox authorities As professor Irving Fisher of Yale and Haw Trey of great Britain. Hawtrey is not in favor of a return to Gold until International co opera Tion is secured. It is not he says to promote International action and. Should it fail the Wisest course for the time toeing might be to concentrate on the stabilization of Sterling a Jenns of commodities rather than tie the Pound to a Metal the vagaries of which cannot. Do fore seen " but this is in essence the Keynes plan itself. The nimble Keynes is not slow t6 recognize the fact Concrete suggestions this Concrete suggestions Are 1 close co to operation Between the trea7 sury and the Bank of England to maintain internal stability of this would not prevent the possible attempt to co operate with the Federal Reserve Board in the Effort maintain ithe. Exchanges at Par. 2 to overcome the Long run changes in the value of Gold he pro poses that a Gold rate the Price of which the Bank of England would buy Gold should be posted at the same time As is Hie Bank rate and that tie not hold to the old fixed Price 17s lord per of. 3 in order to overcome the Short Ruri seasonal fluctuations in the. Exchanges he proposes the maintenance of. Gold reserves by the government to be used for the " purpose of correcting these fluctuations. The ser vice of the american debt he con siders which entails Large Purchase of Dollar Exchange by the govern ment could be used to even up the Ordinary course of the exchanges. 481-4 49 1054 Hay cons. Railroad stocks at Olson Iso a 121 . Pac. Kly Chic. Nor liw. 50 51 of. I Xor. Pro. 6155 kans. City so Lohl Sli Valley. 74 3iisb. Kana. Rejc. _. Miss. Pac. Com _ miss. Pac. Pad. 75 48% 10% 45 3214 49 10% 12% 120 i 121 142 142 49% 61 or 495. 75 74 74 a 115 72v, 41 74 31 33 75 29 115 60% 437. 41% 65% x. T. Central 115 North. Pac _. 60% Pennsylvania. 44 Reading 73% 73% Rock Island -41 42 St. L. San for. 66 66 St. Paul pad South. Pan _. 102 102% 102 102 a Union Pac. 139 Wabash com 20% 20% Wabash 62 Kulp. C an. Loco. 124 a Balf Lweln Loco. 112h 113h.112 112v, Pullman co. 133 Ray. Steel spas _ 123 motor stocks Bosch mag. V 21 Chandler 36. Gen motors 71% 35% 71% 45 35% 71 a 45 35% Packard Stewart Warner. Studebaker time. Kller. Ere. White. Motors Willys Ovar. P Fol Oil Stockh Atlantic elfin. Calif. Pet. Cosden ____.-. Imperial Oil int. Pet. Marland Oil Pacific Oil pan an. Pure Oil Royal dutch. Sinclair cons. Stand. Pilot ind. Stand. Oil of , stand. Oil . Tsas vacuum Oil Beth. 22v, 59% 44 i 40 2sk 55 76 27. 61 it 4114 44% 87 45 16 a 99 a 103 138 138 22% 22 a 60 59 a 43 a 39 a 40 30 27% 29% 27% 22w 59 a 44% 39 50 80 .103 29% 27 v 23% 75 26% 19v, 61% 41 a 41 4 44 h 87 40% 40m 757, 27 61% 4114 36 a 26 a 41% 44 a narrow list is Active in Brief saturday session Nash motors feature Market b soaring 28 Points to new record High of 350 f associated press despatch.1 new York april interest in saturday s Brief session of tha Stock a Market was confined to a few motors which were bid up briskly tha general list displaying a firm tone in relatively quiet trading. The Maxwell issues were again the the a Stock being bid up six Points to a record High at 104 and the a Stock closing More than a Point higher at g35 a More than a Point higher at g35 5-s Nash motors was the individual feature soaring 28 Points to a re Cord High at american can rises United states steel common held relatively steady in the face of a poor March tonnage statement Clos ing Only 3-8 lower at Baldwin closed at 112 for a Small fractional loss but american can was bid up More than three Points to 168 and then fell Back to 166. The rail list was decidedly irregular weakness of the Northwestern rails being counteracted by the strength of Lehigh Valley Atchison and Southern Pacific. Chicago and Northwestern common duplicated its recent Low of closing slightly above that figure for a net. Loss of More than one Point and the preferred broke below 105 to a new Low. Total sales shares. Curb close. Osier Hammond Nanton Standard Oil of Indiana. To Standard Oil of new York 41% to 4194. Imperial Oil 28% to 2sh International Petroleum to 24. Continental Oil 23% to Continental Oil rites s2 to is. Canadian Pacific earnings. Pacific railway earnings for week Evains april 7, ?2, decrease Colo. Foci Iron Crucible lop. Iron steel Replogle 66v. 66% 45 45 34 66- 66 a 1ft 14 rubber Stocki. Fluke bub. Co. Of Odrict. 54 u s rubber sugar i ;