Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-01-02
BONDS ARE IN GOOD DEMAND
Returns Said to BE Better Than on
collateral Loans.
OPPOSING views OF PROSPECT
Pcssimist and optirnist, viewing the
Busines- OutioOk, see DarIiy or
Otherwise, ns the spirit
~ PREsToN q. ADAMs.


NEW YORK, Dec. a.-(specisl to The
Bee Almost any kind OF business
prophet may find facts which will bear
out his forecast OF prosperity or the re-
ample. the man who sees ufough dark
glasses hears that the steel trust Us run
ming i5.0Vg men snort Of its capacity, that
the railroads are figuring on reducing
wages all along the line, and these to-
gether with other signs pOrtend gloom.
on the other hand the optimst sees the
big railroads beginning to order rails and
other supplies. He sees record breaking
CROPS AT along the line, with farmers get
ting good prices business In necessities
and even Injuries going along steadily
and satisfactorily and the outlook for 1911
seems good TO him.
one OF the most encouraging develop
ments Is the threatening demand for bonds.
This movement may easily go far both
at home and abroad Conditions would APP
pear TO be ripe First Of all, income
yielded by high grade issues Is better than
the return Obtainable by lending money
on stock exchange collateral. Investors
have held aloof for sc long that they
should now be in a position to make ex-
tensve purchases. The fact that trade at
home has been declining and that there
r. a widespread aversion TO embarkng
upon new enterprises need not limit the
absorption of bonds, but should mean the
release Of a vast amount OF capital for
Investment IT may be that the recent
incpient activity. as reflected by an in
crease OF nearly 100 per cent in transac-
lions on the exchange, merely reflects the
unemployment Of the January dividend
and interest disbursements, but there are
solid grounds for believing that the move
ment has a broader foundation.
want Lower Denominations.
The odd-iot buying now in progress has
stimulated an agitation for bonds OF lower
denomination than $1,000. The United
States Is so accustomed to dealing and
talking In thousands and millions that
scant attention has been paid TO small
oil FraNa uNr = nn tai re- O.
Contemporaries" motto has been applied
I'm practice to the Investment markets. But
several of our principal railroad systems
have learned from their experience in rails
ing money abroad that the small inves-
tor Is not 90 be despised, and the prospects
are that before long bonds for 500 and
country. There Is no adequate reason why
all bond financing should be done by the
$1,000 denominations. In the stock mar
ket the Importance OF the odd-lot buyer
is rapidly being realized, and nearly every
we'll conducted stock exchange firm now
caters to this class of customer. Why
should not bond houses do the same? The
excuse that a multiplicity of bonds for
small amounts would increase the cleri-
cal work entailed In handling new flota-
tons is not sufficient, as the advantages
OF securing a wider distribution of bonds
throughout the country would be attended
by the most beneficial results.
Prophets in Plenty.
All sorts of people have ways of their
own OF telling how things are going IN
Wall street. The downtown barber knows
exactly when times are good and when
they are bad from the amount OF patron
age and the size of the tips he receives
The high class jeweler believes his bust
ness is an unerring barometer, for II Is
stint their expenditures for iewelry when
funds are plentiful, even though they may
have 10 scurry around tc dispose of their
purchases when depression comes along
This week the clerk at a soda water
counter, whose trade comes chiefly from
curb brokers and their friends complained
with a shake of his head THAI the curl
was having a hard time of it. as he knew
TO his cost; his sales, he declared, had
fallen off to only half what they should
be at this season and to only quarter
of what they were in the summer months
Restaurants also judge by their receipts
whether Wall street is prosperous or not
When commissions and profits are plent
full the expensive places, are crowded; bu
pricd eating houses get the trade. A
present every one agrees that the stool
market game is scarcely paying the candle
New Road for Idaho.
Surveyors posing as geological engineers
who have been WORKING from Salmon CITY
TO Lewiston, Idaho are now said to b.
in the service OF the Gilmore & Plttsburg
Their operations are regarded as confirm
ing a report from Portland. Ore, that thi
road Is about to begin the building Of III
line between the points where these mel
the same effect IS the purchase OF 10000
ties to be delivered at Salmon City.
The Gilmore q Rittsburg is an under
taking that up to this time has been
subject OF more or less speculative GOSSIP
as TO whether IL Is independent or ha
behind Il home established and strong rail
road interest. At one time the latter idei
did not seem 20 be warranted, owing L
Developments Suggesting that its promoter
wero ia trouble or else had had difference
with financial house in Pittsbur
through which its obligations were beln
There still remains an element of uncer
tainty relative to the enterprise that no
a few people would like to see removed
This much IS conclusive-if It IS really I
be an Independent road eventually the Hi
and Hartman systems have some stron
competition to meet later on.
New York Must Pay.
New York City will disburse nearly so
0Oc,V0 among investors I'm January, agains
less than S7eOOOOO a year ago. In addito
60 Interest payments revenue warrants Wi
be paid off.
Big Dividend Payments.
Figures specially compiled by the Journa
of Commerce and Commercial Bullet
show that In January a new high recor
total Of s226,7i1J50 will be paid I'm dividend
and interest by railroads and industrial
and TRACTION corporations, banks and trus
companies, the national government an
Greater New York. This compares wit
500 l,Sl0 last January an increase O
S26.2l95S5, Next month the sum OF s93, ass
way OF al Vldends. or 81 349, bS5 more than h
January, 1910 In brief. many corporation
were. enabled to resume or increase divi
dends. while others were able to max
initial payments, A few reductions ar
noted AS customary, Industrial corpora
lions furnish the most striking changes
Concerning the showing II should be men
toned that the current dividend return
are more complete than In the openin
month this year, Interest payment
amounted TO Sl33 29l, $50 or an Increase q
t1,S60.o00, due TO large output OF bond an
note issues and also to the large amour
OF New York city revenue bonds that ma
ture next month
Cotton nilI of LudinE.
Discussion OF the cotton bill OF ladin
question will be renewed early In Febru
ory, when representatives Of the Ker
committee OF the Liverpool Cotton eN
change viii visit this country and confe
WITH American bankers. shippers and raj
road officials, The general opinion As thu
the valuation certificate scheme IS only
temporary measure and does not adC
QuatelN provide the safeguards agans
fraud ana forgery required by the foreign
crs Ultimately national legislation wi
have 90 be enacted. and complaints agains
irregularity In the issuance of valldatio
certucatfs are certain to accelerate actio
IN this direction.
The recommendation concerning a hill q
fading law made by President TAFT in hi
MESSAGE has the approval OF most railroa
men, cotton shippers and foreign eNchang
huNoraf according to reports in the finau