Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-01-09

Deen quiet ana 1alrly uOpelul leel-
ing. The investment dtmand, how
ever, experienced in January has not
thus far made itself felt with the usual
freedom. Bonds are disappointingly
dull. This may be explaintd by the
general feeling of caution among in
vestors and the unwillingness of large
buyers to take hold until conditions
become more settled. Another factor
is insistence by the holders of capital
for better returns. Low interest-bear-
ing mortgages and bonds are slow to
sell in spite of safety. This desire
for safety in investments is illustrated
by the phenomenally large output OF
bonds during 1911. The actual output
Of new securities last year is now es-
timated at about $1,730,000,O00, in
Guiding approximately $990,000,Oo0
bonds. over $500 ,OO0,0 900 short
notes and only about $352,00O,o00 in
stocks. This tremendous preponder-
anca of bond issues over stocks is
highly significant. 1t means not only
a large increase in the fixed obliga
tons for railroads and industrial con-
Germs, but also shows the strong pref
erence of investors for bonds in or
der to escape the uncertainty attend
ing ownership of stocks. Recently
the new issues announced have been
comparatively small, but it is under
stood that important issues are still
pending and awiting favorable condi-
tons. In this connection it is inter-
esting to observe that some OF our
financial institutions are contemplate
ing the issue of notes and mortgages
bearing more liberal rates of inter-
est than have previously been GUS
tomary. In other words, they are
willing to raise their bids for new cap
ital. Under present conditions 1t
would be better for our railroads to
issue short-term notes than bonds. In
vestors would take the notes more
readily than bonds and the roads
would avoid further piling up of long
date fixed obligations.
General business is quiet, but there
is every indication of soundness. Re-
ports from the interior are slightly
more encouraging, indications sug
costing that reaction has seen it's
worst and that any change is likely
to be in the direction of betterment
rather than further depression. One
important fact is that soil conditions
throughout the west have been excep-
tionally favorable, thus warranting the
expectation for good start In next
seasons crops. Railroad earnings are
fairly we'll maintained and occasion.
ally show encouraging increases in
gross. In other cases, however, the
latter are offset by somewhat disap-
pointing increases in current ex-
penses resulting in poor net returns,
the Hartman lines being notable In
this respect.
Monetary conditions are entirely
satisfactory. January disbursements
We're passed without the usual fur
ries experienced at that time. Money
will soon begin to flow back from the
interior and the local outlook is for
a period of considerable ease for some
time to come The situation may,
however, be materially influenced by
conditions abroad. Large German
loans mature in this market during
January. The monetary strain in Der.
lin is still noticeable, the last week.
ly statement of the Imperial Bank OF
Germany showing loss of 81 100000
marks in cash, accompanied by an in
crease in loans of 100000 marks.
Berlin has again been obliged to call
upon Paris and London for accomm0-
dation, and tho high carryover rates
recently paid in this market served
to show that the strain in Germany
brought about by the Moroccan Incl
dent is still to be reckoned with.
Germany has certainly received an
awkward rebuke for its aggressive at
titude in the Agadir affair of last
sumner. Another direction which will
bear watching in connection with the
market is the Canadian situa-
ton. The boom in that section of the
continent has been overdone, showing
Itself chiefly in excessive land spec
llation and a possibly too liberal is
sue of municipal investments. In case
Of a crisis across the border New
York will probably be called upon for
assistance. The last report of the ma
tional banks in the United States
,houod sotisfa ctory condition Of af.