The Birmingham age-herald., 1911-05-14
MONEY AT HAND
 FOR SECURITIES Demand For Bonds Shows
 Improvement STOCK HOUSES CLOSE One Feature of Dullness of the Stock Market-Sesurities Sold to Extent of Thirty Mill
 lion Dollars
By PRESTON c ADAMS

While the speculation market in secur- fties remains painfully dull, there is money at hand apparently for good in- vestment securities. In fact, the im- provement in the demand for bonds is marked. More than S150,000,000 new capital was raised during April by American railroads, whereas a year ago the fiotations just exceeded $40,o0o,- coo. Bonds have been mainly respon- eible for the increase. Flotations last month reached $105,00O.000, against e25,0oO,000 in April 1910, the increase having been, therefore, $S0,000,OOO. Short term notes were sold to the eX- tent of S39,000,000, whereas only $15,- 100000 were put out In 1910. Stock is sues were light both this year and last year, the total for the month just ended having been a little over $S,- 0O0,000. Ne net increase of all classes of securitiw over a year ago was $110,0OO,000. Advantage was taken of the revival in bonds to market quite a number of blocks which had been au- thorized in former years. but for which there had been no adequate demand The May railroad financing is also likely to be fairly heavy, provided the supreme court does not precipitate de- moralization.
 The foundation of the bond market is, of course, money. Now. money is pour ing into New York in far larger volume than outlets can be found for 1t on the stock exchange. The daily inquiry for call loans is abnormal1y light, time funds cannot be put out in any exten- sive quantity even at the bid quota tions, the supply of high grade mer- cantile papers is restricted because of quiet trade and the keen demand for short-term notes has greatly diminished the floating supply. There rema inS stocks and long term bonds. Bank CTS and brokers agree that the public can not be induced to purchase stocks no matter whether the prices go up or down, so bonds are in better demand and the indications are they will be in still better as time goes.
 One feature of the dullness in the stock market is the closing by num- Der of stock exchange houses of ex- pensive uptown offices. T, 5e
 Current commissions would not pay the charwoman, to say nothing of the costly incidentals of running a broker age business amid luxurious surround ings, where money is spent lavishly. IL Is all very sad. Yet, somehow, the pulp lie can look upon the troubles of Wall street brokers with a minimum of sor row. There is a sort of feeling that brokers are enemies of the public and that their afflictions are the work of Providence. In seeking ways and means of reducing the cost of living the up- keep of so many gorgeously appointed brokerage establishments has been eliminated. 1T.
 According to returns specially compiled by the Journal of Commerce the total dividend and interest disbursements by railroad, industrial and traction corpora tons this month will amount to $93, ,697, ,09S, against $S7,964, ,327. in May a year ago. The April figures were $146, ,610. Of next months total dividends will contribute s35,S97,09s and interest payments s57, ,S0O- coo, compared with s33, 464, 327 and s54, ,0Oo respectively last year. A number of com panies will pay initial or extra dividends, while some concerns will make disburse- ments on an enlarged capitalization. A few corporations have changed their dividend periods. On the other hand, smaller payments are noted in several in stances. At the same time 1t should be said that the returns are more com plete than in 1910. The heavier interest payments are due to the new bond and note issues.
 summary of Mays dividend pay ments, with comparisons with the same month a year ago, follows:
 Industrials. 1911, s21. ST. 223; 1910, s26,3S2-
 Railroads, 1911, s12,16S, 449; 1910, $20,3S2,- 0S7
 Street railways. sl1, s2,o51. .42s; 1910, s2,o12.- T9l.
 Total, 1911, s35,s ,09S; 1910, $33, ,463, ,s27.
 The German stock market absorbs every year considerably more than s710. oO0,0O0 of new securities of which 10 and 20 per cent are of foreign origin,'' says the Deutsche Bank. These foreign in vestments have become a necessity for Germany's economic system. Frequently. and especially in times when high rates of interest prevail, such securities prove serviceable in adjusting Germany's flnan- cial relation with foreign markets. Not withstanding a few regrettable losses, which were sustained more than twenty years ago by reason of the non-fulfll- ment of obligations assumed by foreign governments. the average result of Ger man investments in, foreign securities Is exceedingly favorable, and, as can be shown, has enhanced the national wealth by many hundreds of millions of marks. Although our activity in issuing new se- curities is principally and preferably di- rected toward domestic issues the Deutsche Bank, after careful investiga- tion and deliberation in each instance, has participated in the introduction of moderate amount of foreign securities, and may point to the fact that for long period of years not single security of foreign origin which it has introduced at German stock exchanges has been in dis tress."
 Transactions in stocks on the New York Stock Exchange in April amounted to 6,067, ,674 shares, against 6,S91 1852 in March and 12,946590 shares year ago. The sales since January 1 aggregated 32.522.- 822 shares, compared with 62,724, ,804 shares for the similar period year ago. The sales of railroad and miscellaneous bonds in April reached s55, 736,000, against $63.- 612O0O in March and $50,SS1. .500 in April. 1910. The dealings since January 1 foot ed up 2S1,774.500 which compares with Sz97 076 700 during the same time last year.
 Since the summer of 1906 the three prin- cipal life insurance companies in New York have sold securities to the extent of $30,O0O,000 Spread over so long pe- riod. this has entailed no appreciable strain upon the market But as these companies still hold $43,000,000 worth. were the whole to be liquidated between now and the end of 1911, the date set for the closing out of these accounts. Shares of financial institutions would suffer most, as the railroad and other securities now carried do not reach an enormous total. The Equitable. for example, has less than $10000.000 par value of railroad and other bonds and stocks apart from bank stocks. the par value being slightly In carries $4,700.00O of the same class of se- curities the market value being some what less. The Mutual Is by far the heaviest holder of railroad stocks. It still carries $5,SS0000 New Haven shares (market value), $S,870.000 Pennsylvania, s2.775,000 St. Paul and a grand total of almost $3o.oo00oo railroad securities, in