The Montgomery advertiser., 1906-03-18
TALKS OF BOND SALE
WITH MIR. BALDWIN OF
 FIRST NATIONAL BANK.
Montgomery Finnncier Reviews the Condition of the Money Mar ket and Praises Judgment
 of Governor JeIks.

A. M Baldwin, President of the First National Bank of Montgomery, one of the banks interested in the syndicate which purchased the State bonds Thursday, being asked yesterday to express his views upon the sale of re- newaI bonds by the State, talked in- terestingly.
 The details have already been given to the press" said Mir. Baldwin, and I have nothing to add In that connec- tion. While the price at which the bulk of the bonds were sold may be a disappointment to many, 1t was as high as could be obtained under present con- ditions, and was $75,000 more than the next highest bid for all of the bonds.
 At the time bids were first consid- cred on these renewal bonds, about a year ago. a syndicate composed of practically the same parties to whom the 4 per cent. bonds have just been awarded, placed a bid for 1-2 per cent bond; at that time conditions were much better, with promise of eeasier money, which. however was unfortunately not fulfilled.
 ''The industrial activity which has prevailed throughout the entire coun- try, abroad as well as at home, during the past year, has given safe employ ment to vast sums of money at re- munerative rates, which Is a factor that always initiates against high values for the standard low interest securities. Bonds of this character are, as a gene al thing, sought for in vestment of idle and dormant funds, and particularly come into demand at periods of general mistrust; under ex- istinR conditions, business investors demand greater returns than such bonds will afford.
 Added to these natural causes, the recent and unexpected high specula- tive values os all stocks and similar securities have required a very large amount of money to sustain them. which fact has an important bearing on lowering the market value of high grade investments like Alabama bonds. For instance: New York city has, up to It's last issue of bonds, which was in the pas. thirty days, been able to sell i-2 per ceny. bonds at substan- tial premium; the change in conditions being recognized, this last issue was made per cent. bond, and brought but a slight premium. Thus 1t will be seen that those charged with the fnan- cial affairs of the greatest money cen- Ire in this country could not foresae these changes in conditions, and do not recall having seen any criticism of them or their lack of foresight.
 'eTho Governor, after mature con Sideration or some daySp TeJecleu IHe former bid, believing that tho bonds should be sold upon a better basis, and in so thinking. as remember, he was by no means alone; certainly d large proportion of the people of this section who have either been holding or ad- vocating the holding of cotton for higher prices, which have not been ob- tained, can appreciate the motive which prompted the Governor in the interest of the State, to take such course.
 The present financial condition of the State, recently shown in the col umna of your paper, strongly sustains him in the title of Our Business Gov ernor which should be unaffected by the happening of higher money rates, which but for the conditions I have given might well have been the other way-resulting n a gain to the State. .
 Cheap Ventilation.
 Of course the ideal house will be pro
 nNR