The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-01-29

the Stock Exchange continues unbro-
ken. On the one hand security holders
will not sell because of belief in bet
ter times ahead when current political
uncertainties. domestic and foreign,
are over. On the other hand buyers
are Holding aloof for the better re-
turns which pending new issues are
expected to offer. This standoff be-
tween buyers and sellers has been
further illustrated by the attitude Of
large corporations in need of funds.
1t Is known that banking houses had
been holding back such offerings for
some time past, awaiting more favor
able conditions, this situation being
largely responsible for the compare
tive inactivity of the investment mar
ket. There is no serious lack of pur-
chasing power 1t may be that among
the smaller class of investors there is
less money than usual for sailing
down purposes, but there is sufficient
buying capacity among large individ-
ual corporation investors to take care
Of q reasonable amount of really desir-
able offerings. There has been one 9TH
er rather important obstacle to good
investment buying, and that il the in
sistence of purchasers upon better re-
turns. Capital now demands larger
profits upon now ventures, an attitude
which at Arst sight seems Inconsistent
with the glutted condition of the mon
ey market. Money. however, may be
cheap for temporary purposes, but
vestment requires and seems able to
secure better returns. Capital also
wants larger profits, because those
with fixed incomes are compelled to
secure higher rates Of interest of d.
vidends In order to meet the increased
cost Of living. This week several new
bond issues of importance have been
made at rates which prove such asser-
lions. Where ~ per cent used to be
an acceptable return upon high-class
bonds, s per cent is often now deman-
ded. Desirable issues have been made
recently at about a per cent basis.
It 10 worthy of note that In all the new
issues thus far offered little or no
stock has been offered. This continued
preponderance of bonds in new issues
is significant. Whether it is a mark OF
general distrust or not. it means a pill
ing up Of fixed concern in event Of any
widespread business depression.
The stock market was further unset
tied by the expected reduction in St.
Paul dividends. For years this stock
has been upon q z per cent basis, but it
was known that last years net results
did not warrant q continuance of this
rate. Union Pacific has also been
weak owing to less favorable reports
Of earnings. the operation Of the road
having been materially distributed by
labor dimculties. Developments con-
corning the New York. New Haven and
Hartford have also exerted an unsat-
isfactory influence. This property, for
many years considered one of the
strongest in the country, has been
brought to the verge Of difhculty by
the attempt to establish a practical
monopoly Of transportation throughout
New England, paying extravagant pri-
ces for competing properties and find
ing itself saddled with rundown prop.
pacity. The Steel securities were also
affected adversely by investigations at
Washington, which tended to show
that the company had been making ex-
cessive proAts. Little concern is shown
about the tariff, the company being
practically Independent Of protection.
The House may favor the new bill, but
the action Of the Senate and the Presi.
dent 10 uncertain. The reports of a
slackening in demand for iron and
steel products also tended to weaken
values. Altogether the stock market
wore . somewhat uncertain appear.
ance.
Money continues remarkably easy !;
in fact our principal markets are glut'
ted with idle funds. Currency 10 flow.