The Washington times., 1905-12-31
HIGH-CLASS BONDS
GROWING POPULAR HERE
A New Feature of Financial Washing
ton That Has Taken Root
and Thrives.
BIZ WILLIAM E. LEWIS

The fact that Washington is fast
becoming a. center for financial mat
I ters, as IL has so long been for social
and poliLcal ones, is stril1ingly Illus
trated in the increase and improve
ment during the past year in the
growth of what is known as the in
yestment bond business. But a year
ago, and one house known as a bond
house exclusively, was able to supply
all the demands of that class OF busi-
ness here, and it's capacity was not
overtaxed at that. Now several Of the
most prominent investment bankers of
the country have branches located
here. and find the business growing to
such excellent proportions that they
are encouraged to look for even better
Things In the future. One of the fndi-
cations of that interest is the recent
formation OF an association of the
Dond brokers of this city, which was
started out under hattering auspices
ana gives promise OF a good career.
Banks Large Purchasers.
During the summer season the local
banks and trust companies were fairly
steady buyers of the best class of
railroad bonds, but with the higher
money rates in the fall, the demand
from that source fell off considerably
and the individual investor was then
looked to as a market for bonds of
the class that were offered for sale
consisting principally of the higher
grade Of railroad and municipal issues.
Individual Investors Sought.
II was found that among this class
a great deal Of what might be called
educational work had TO be done. The
Washington investor has a preference
Tor real estate notes, and was slow TO
see the advantages of standard rail-
road bonds, which have a broad mar
ket Of sale and a fixed value as COL
lateral at almost any bank in the
country; that their value can be as
certained promptly at any of the
larger centers Of trade; that the cor
poration issuing them is generally do
ing tremendously profitable business:
that there is no expense or trouble in
Cured in owning this class OF bonds.
and that generally the income from in
vestments of this character Is as large
as from real estate mortsages. When
convinced Of these facts-and il is
part Of the business Of the bond broker
to furnish them-the individual falls
into line with bankers and trust off,
GERS and becomes a good bond buyer.
Local Investments Limited.
The fact that the list of local in
Vestments is extremely limited. and
that good real estate notes are no longer
TO be had for the asking. is evidenced
by the largely increased holdings of
railroad and municipal
bonds by the local banks and other
financial institutions. The further fact
that Washington is growing rapidly
in wealth and POPULATION, and that il is
the gateway TO the Southern country.
whose resources are now Seing rapidly
developed, indicates plainly that this
city must soon become an important
outlet for the best class of investment
securities.
The gentlemen who are engaged in
this business are confident OF the fu-
ture, and already feel that the seed
they have sown has fallen on good
ground. and will eventually ripen and
bring forth fruit, and that Washington
in the not far distant future will take
rank with some of the larger cities
as a good market for high-class bonds