The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-12-31

Of year when the public interest in
securities, dividends and reinvest-
ments reaches its most acute stage.
The interest and dividend disburse-
ments on January first are always
larger than at any other similar per-
iod, and the extraordinary number of
special dividends that have been de-
clared during the month of December
will add materially to the amount of
money available for investment after
the turn Of the year. Bankers and
brokers declare that far greater
proportion than usual of recent stock
purchasing has been done with an eye
to dividend payers, and the greatly
increased earnings of many of our
leading railroads and industrial cor
porations has enabled them to pursue
a very liberal policy in the matter of
disbursements to stockholders.
1t is conservatively estimated that
the January disbursements OF inter-
est and dividends will exceed $780,,
100000, and while some portion OF
this sum will doubtless be appropri-
ated to the regular living expenses of
the Recipients, the larger portion of
these increased dividends that the
visible evidences of prosperity is so
pronounced at this time. Sharehold-
ers of the various corporations have
been we'll remembered in the distri-
button of the enhanced profits, and it
is largely because of the belief that
this money will find its way into
securities that many conservative
bankers and brokers look for con-
tinuation of the upward movement in
securit-- values. 1t is estimated that
the amount of the end-of-the-year
dividend and interest money that will
find its way into securities will be
larger than in any corresponding per-
iod in the history of the country. Last
week 18 companies increased dis
bursements to their respective share
holders, comparing with p companies
in the preceding week. In other
words, shareholders of 40 corpora
tons in two weeks have received mil
lion of dollars in excess of regular
dividend payments. Last week two
companies declared initial dividends,
two resumed dividends, and three in
creased their respective rates. Mine
companies declared extra dividends
and two companies provided for the
payment of dividends in arrears. The
earning power of the majority of rail-
roads, industrials, mining and other
corporations is increasing week by
week, and as long as this continues
the movement toward increased dis
bursements is assured. The banking
institutions have also shown great
iberality in dealing with their officers
and employees, their ability to do so
being the resultant of their enlarged
profits during year of exceptional
activity.
1t is at this time of the year, also,
that the seasonal buying in anticipa-
ton of the January rise" is such a
marked feature of the stock market.
The amount of this years purchasing
for the January account has been on
a somewhat limited scale, the sales
records showing the December turn
over to be on a more limited basis
than that of November. Million-sharc
days during December have been few
and widely scattered, and the average
daily sales have been less than in
November, the record for which was
728,l15 shares. October was by far a
more active period, the average daily
sales being in excess of one million
shares.
European Liquidation of American
Securities.
Each incoming steamship from
Europe is bringing to this country
quantities of American securities for
sale in our markets. This liquidation
is going on at a much larger basis
than six months ago, and the reasons
attributed to the movements are two,
the low rate of foreign exchange-or
conversely, the high rate of American
exchange; and the necessity of for
eign investors to convert their securi-
ties into cash in order to procure the
necessities of life. In many instances
the deprivations due to the war have
already compelled these foreign in
vestors to use UP their surplus saw.
ings, which might be called the line
of first defense, and now they are be.
ginning to call upon their security in.
vestments. the second defense line
This European liquidation, while MOI
sufficiently large to cause any embar.
rassment in financial circles, is never
theless held responsible for the failure
of many securities to record the gain:
that they would naturally make. Ar
estimate OF the amount of such secu
rites sold here in the past month i!
between seventy-hve and one hundred
million dollars; and while the buy
lhS power Vi d SuOSldHlldl part OF INT
public is being absorbed in securitie!
privately placed from abroad, risint
market can hardly be hoped for 81
long as stocks pour in on such larg,
scale. 1t is believed that most o
Europe's offerings are coming from
London, although Germany is still
feeding out her American bonds stead
lily. They are being handled by few
of the more important banks an,
banking firms, and because of thi
procedure numerous smaller concern
which disposed of a great many Sc
curities on foreign orders in Octobe
and November are not active now. Ii
fact, there are banking and bon,
houses which have handled very few
bonds this month for European client.
Current offerings are said to be com
prised largely OF railroad bonds wit