New-York tribune., 1912-04-30
THE BOND MARKET STATUS
Probably Awaiting Outcome Of
City's New Issue.
SOME REFORMS NEEDED
changes in Denominations and
Issues Would Stimulate
Buying.

rbs bond market did not e1hio'' any ie
..a,katle change during the week enoeu
-s, o, The trading was more reserved II
'.,,i,g owing probably 10 the announce
an -. The oity OF New York would
men 49, ooo ooo Az per cent bonds early I'm
80, sbould this issue be oversuoscrlbed
NO. = 80 a reassiriug effect on the
- market generally and encourage
hr;nqIng out some new issues OF o'ne'
There is a vast amount OF fnanc-
,.r which Is necessary for both railroads
"a ,ndustrlals. and the bond market must
- nogitlon 10 absorb the attractive
.o.,r,,ias NJ these classes. or we snail oe
80, a stagnation OF affected commercial
,1,e-asts lust when prosperity should be
g. ,,ucb agitation against railroads has
,-a,,orca5 the public mind I'm the matter or
.-,road investments and has gl'en birth
-. =, apathv toward most railroad oohga-
-, financing except short-term notes. \
-, change has come over the investment
r,,tlic--tbat part Of the public which rep
'.,a,ts the greatest numerical strength
I'D which I'm the aggregate Is a money
s.o.or ~ he aupealcd TO by corporate in
-. dorc,ding ON the public buying OF
,b,lr securities for ample financing. From
,ailroad bonds. which few years since
oero tie foundation rock Of the nohoeu
sacpritv market. IN 'ustrlal bonds oi the
better class and public utility bonds nave
,on,s into favor. Public utility bonds are
rrovying fin popularity. particularly those of
tho gas and electric light. heat and power
class and their position in the investment
world apparently is fixture
3, ru bo necessary for the railroads TO
,ba,ea their former scope of bond issues
60 Give the public more attractive induce
.,ortg convertible bonds. II is believed by
many boDd houses will be a solution for
,,,. rreseut Of some of the objections TO the
ror,iation bond. The 81. Paul tested the
o,nerimont. and It's favorable reception will
,,robah,y encourage other roads 10 follow
sipiar lines.
ybA limitations platcc on the railroads m
,to matter Of rates by the Interstate Com
,,erce Commission and the demands of en-
r,ovss for higher wages place the roads
'.between the devil and the deep blue sea
and the bond buying public cannot see
much in the old stereotyped form OF BOND
.s an advancing security investment
The encouraging tone in the market Is
easy money conditions which will make
moderate rates for the next few months
unless something unforeseen should present
;,se,f 10 disturb the minds of the bankers
Another change in bond sentiment is a
tendency toward bonds in denominations or
snl and upward The development OF this
small. bond market will meet a popular
want among the saving classes of this
country. Much OF the financial strength
and iudependcnce Of the French peasantry
is due 10 their opportunity TO purchase
sound securities similar TO our bonds in
small denominations Ia this way the
French peasants have always been able 10
p,l, their savings of a few dollars into sate
securities. which nave brought them resu-
lar returns and have made the population
Of France as a whole. the richest OF any
country in the world with ready cash. This
fact was emphasized after the Franco
German war. when the French people
poured their cash out TO pay what Ger
many thought would be crushing debt.
In the United states little attention has
been given ny the big corporations TO the
humble savings Of the wOrkingman' ana ne
has been left as a victim Of the bunco ana
get-rlch-quick promoters. who have sold
him everything. from fake mining and oil
stocks 10 profit sharing securities in un-
known supposed buried sea treasures and
o,her equally preposterous propositions
Billions of dollars have gone into this cham
mel. simply because the poor savings classes
have not been provided for with good issues
Of securities and educated TO the point OF
discrimination. which would naturally have
followed had the baby" bond been part
Of the general scheme Of financing by the
legitimate interests