The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-08
NEUTRALITY-SUSPICIOUS. BONDS


| "LA % hEE1'c ~ HNAA VNs
It Comes From individual Investors All
Over the Country, who Have Decided
That Prices Have Mt Last Got Low
EnouEh-Marks Change OF Attitude.
Inquiry among some Of the leading dealers
in bonds in Wall Street brought out, yes
| terday, the fact that for the past three or
four weeks there has been demand for
bonds, seemingly confined to no particu-
lar section Of the country that has drawn
more than ordinary attention to this class
OF securities.
In ordinary times such demand would
have occasioned no comment' whatever
in Wall Street 1t s noticeable at this
time, not because Of any great HOOD OF buy
ing orders, but because there are any orders
at all. For long time the bond market
has been duller than a Quaker meeting.
Nobody seemed to want any kind OF bonds
at any price.
Stock prices were ON the toboggan slide
and conservative investors seemed to be
holding on to their uninvested cash, eX-
pecting still lower levels, or demand for
money on time loans. Therefore, there
was no demand for bonds, no matter how
much gilt was on the edges. Under these
circumstances even q little lookup IN the
market would cause comment.
Joseph E. Brown Of Blake Bros. d
| Co. said yesterday. 1T 10 true that
| in the past two or three weeks, there
| has been noticeable but not marked
demand for bonds from investors In vari-
| GUS parts of the country. A popularity
| OF the inquiries that have come to US Is
| that they have come from individuals ana
| not from institutions. Furthermore. quo
tations have been asked for on only the
| highest class bonds Only bonds OF Inc
class which savings banks are peTmltte0
| to hold, or those which are regarded as al
most as good, have been asked TOR.
| "Of course, this must be regarded as
most encouraging sign Of the financial
| times. 1t indicates, among other things.
| that investors have concluded that this dis
| turbance which we have had III wan street
was not sure indication that the country
was going to the dogs, and that, after wall
| Street had got over it's paroxysm, there
would still be something left worth having
| II also seems to indicate that investors have
tired q waiting for q further and bigger
drop in securities and have cohcluaeo 70
| buy good things while the buying is good.
But this demand for BOMBS is only what
| careful observers OF financial situations
| might have expected. 1t Is always the case,
| after periods of depression or slumps IN
values, that investors, regaining some OF
| the lost confidence, come out and ASK for
| quotations on the best securities to be had.
Nothing else will do at first. They want,
after such periods, something that III safe
| and sure.
Furthermore, I am inclined to think
| that the demands for bonds that have been
| noticed in this market indicate that in.
vestors have concluded that there Is not
| going to be anything like the demand for
time money that was expected. Money
| Is not tight. Investors will not buy bonds
| or stocks when they can invest their money
| at higher rates of interest. The ordinary
| users OF money, owing, In part, to the
strikes and the difficulty OF getting men to
work steadily have cono!ude asn 10 ct 1bera
is no lnordinate demand for money. In
vestors do not want their cash on hand to
remain idle. Therefore, they are seeking
high class bonds for investment.
A member Of the firm Of Harvey FISK q
demand for high class bonds for about
three weeks. There has been nothing
very remarkable about 1t but 1t has been
sufficient to be noticed and commented on.
Il undoubtedly indicates that investors
are taking, much more hopeful view OF
The general financial situation than they DID
degrees TO- there Is always demand lot
james G. Campbell Of Farson. Leach
l. Co. spoke Of the bond situation as iol-
lows: with us tho demand for bonds De
came noticeable about Sept. l. we al.
ways hear from investors, however apou.
that time Vacations are over then and
persons with money to invest usually
make inquiries about that time. There
fore we took no particular notice OF 'he
call for quotations and suggestions al
first, thinking that they were the usual
| post-vacation Inquiries They kept COM
ing however, and are still coming, 30 We
| have concluded that money from various
parts of the country Ii seeking investment
| in a little more than the ordinary Septem-
| Der quantity. ,u
vidlals and the securities asked for are
what are called the high grade bonds.
Our clients don't demand savings banks
bonds only. They want good sa;ne, i .ha
demand to the fact that investors have
found out that there is not going to be
expected They have also concluded, l
| imagine. that panic levels in securities
are not going to be realized. Therefore,
they are after good bonds.
A member Of the firm OF n. W. Harris
4 Co. said: "Of course we have noticed
a recent increase in the demand for high
class bonds. / would not say that It has
been a marked demand, but a noticeable
" one" We have peculiar facilities for know
inc about such calls for securities, be-
caIlse our customers are individuals rather
than institutions. We have had inquiries
from all sections OF the country ana an
have been pretty much Of the same char
acterDa cali for gilt-edged bonds for in,
yestmept. We take this az a very good
Indication of the general condition Of the
country. 1t indicates to me, at least,
that the country, at large, is not taking
gloomy view Of the general financial situa-
ton"