New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-13
WHEN MONEY COMES
BACK TO WALL ST.
Tides of Reinvestment Do
Not Always Arrive as
Scheduled.

Twice in the year-on the first OF
January and the first Of July stock
holders and bondholders of the great
corporations get more dividends and IN
terest in the aggregate than they get
at any other time. Great numbers OF
somi-annual payments fall due on those
days and quarterly payments as well.
Some of them come before and some
after the actual dates named. but gem
orally speaking January l and July l
are investors big payday.
There is a tradition in the financial
district and the facts bear 1t out
that. all things else being equal. large
part of the dividend and interest dis
bursemen:s made around January l
comes back to Wall Street and ls re-
Invested. There is also tradition that
the same thing occurs at mdyear. The
facts in this case are somewhat less
eloquent than in the other. over n
period of wears, indeed, they point to a
contrary conclusion.
The bulk of the business in bonds
that is accomplished in the financial
district does not take place on the
Stock Exchange, but is matter OF
over-the counter trading. The trading
on the Stock Exchange, however, IS
probably an accurate guide 10 the vol
ilme of transactions, month by month,
that are done outside, rejecting all the
increases and decreases. As for stocks,
the exchange is pre-emlnently the big
market.
Taking the monthly record of sales of
bonds and stocks at the Stock Exchange
for a period of ten years past, one finds
that the January reinvestment move
ment in bonds is a well defined phe-
nomenon. January sales have shown
considerable increase over those or
the preceding December every year for
the last ten years, except one. The aver
age increase in sales was SlS,523.5IO,
and the gain has run as high as ST.
100000. This was in January OF the
current year. In 1910 there was de-
crease of s1S.125.000 for January under
December At that time there was a
good deal of unrest in the financial
community over President Tatts spe-
cial message urging Congress to
strengthen the hands OF the Interstate
Commerce Commission and declaring
that the anti trust law should not be
amended Likewise there were heavy
billiards in the West, and the security
markets we're nervous over the possible
results Of the famous Rock Island cpl
sode, which had occurred only short
time before.
July reinvestment in bonds, however,
is by no means as certain of recur-
renee as the January movement. 1t
has been noted in only four of the last
ten years 1904. 1907. 1908 and 1912.
Whether it is taking place this year as
well il is yet too early to tell. One of
the reasons advanced 20 account for
this failure of July to show a consist
ont gain over June in the ten-year pc
nod is that at this season of the year a
great number of security owners and
trustees are holiday making at the sea-
shore or in the mountains and so are
out Of touch with the security markets.
An additional reason is that summer,
coming between seasons of active gem
elal business and ahead of the greatest
crop harvesting time, Is likely to be a
time of quiet business in Wall Street
a. well. and so there is usually no great
hurry TO make new commitments in
securities. To this rule, however, there
have been n great many exceptions.
The following table shows more
plainly than much description could
Just how the semi-annual rcinvestment
movements in bonds of ten years have
progressed: