Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1910-10-07


By Associated Press
Los Angeles Oct. G,--The future for
bonds IL bright because the present
cnietide in business will stimulate
thrift which IN turn win Increase the
investing power Of the country was the
belief expressed today by Deputy
Comptroller Edmund u. Fisher OF
New Nurl, city In a speech before the
savings bunk section of the American
| nnnkeI's Association. Mr. Fisher said
The future of bonds as an invest
ment Is bound up, 10 a greater or less
ser extent. with practically every qiles-
tlOn which affects financial and indus
trial activity. 1t IL mnnlfestly lmpos-
sible, within the appropriate limits OF
an address, to deal In more than u
general way with some of the funda-
mental causes which produce fram
time to time marked and sometimes
/ violent fluctuations In the value OF In
Nestments with fixed maturltles, and
, to point out some of the weaknesses In
our general methods of transacting
business which are responsible for
these fluctuations.
Interest return on the nnr'set
value ~ characteristic securities dur
Ing the past three decades has under.
gone a marked change This return
on railroad bonds was. In 1879, $50
per cent In 1883, lD3 per cent: IN
1893. 1886 per cent, while In 1903 II
was on basis Of ilS per cent. The
return on high grade municipal secur-
ties during this period has averaged
about ! per cent. lower than thesn
rates, except In the last decade, which
has been characterized by change In
the general movement Of bond prices.
II is quite evident, therefore. that
from the broad standpoint, the usual
law involving interest returns has pre-
vailed; namely, that az wealth and cap
tai have increased the Interest return
an invested capital has declined
Economists have been endeavorinR
to ascertain the chief reasons under
| lying the more recent ana startling
change in bond values. The large IN
crease In the production of gold since
1895, The extraordinary increase In
commercial transactions, the broad
enng of the opportunities FAR invest
ment by larger and more frequent
issues of railroad and industrial ga
curitles, extravaganza and the greater
use of Injuries thrOugout the world,
the maintenance of large standing
armies, the building OF powerful ma
vies, the capital waste through three
disastrously expensive wars the In
ilation from the Increase az national
bank notes in this country, the ex-
pansion of the scope of savings bank
Investments and the capital loss due
to the san Francisco earthquake have
all been causese for the marked low
erlng ar bond prices during recent
years.
"'rhe ahn,r rmal Increase IN the sup
ply Of gold, followed by higher COM
modify prices. has recently been FREE
quently ascribed as the main reason
for this change There is however
serious question whether increased
gold production has been the dominant
factor while II Is probable that the
stimulating effect of gold has been a
contributing element In the increased
activity Of the worlds business. still.
the outlook over long period OF
years tend to disprove It's quaniltn-
tive force In materially Affecting prices
Gold production has more than trebled
In amount during the last thirty years,
but 1t is very doubtful whether the
much smaller Increase in commodity
prices during the same period has been
mainly due to this cause The truth
Is that gold cannot be classed as an IT.
dinary commodity Il Is a law unto
itself
The growth OF this country and
IT'S consequent increase In Importance
among the nations of the world in It's
financial and commercial relations, has
emphasized some OF the defects that
have long been inherent In both our
banking and business methods, and
which have also tended TO depreclate
bond values An unsound currency
has placed MS AZ great disadvantage
IN our relations with other countries,
especially during times Of readiust-
ment following periods Of undue busi-
ness initiation European linanceers,
with their ability TO raise money all
times through the medium OF WE'LL
established centralized banks. have
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