Evening star., 1915-06-27
STOCKS INACTIVE;
BONDS |NDEMAND
Investors Are Looking for
Good Dividend Paying
Securities.
SOME BIG LOSSES ARE
REPORTED ON 'CHANGE
Professionals Busy Trying to Keep
Up Appearances-Divi-
dends Soon Now

MN NofSh. jii1e D. 1 nc New OF IL
stock market has again been forced to
It's Old position of lethargy and iuuct!N-
ity. with the general investor ccaspic-
uous for his absence and the prufeS-
sional operator working overtime to
keep up appearances. Not once i'll the
past two weeks has the total turnover
the stock exchange exceeded 6or, 600
shares, and on more than one occasion
1t has been less than 100000 shares The
fact is that people with funds to invest
are nov insisting upon securities which
are devoid of the speculative features.
and which offer reasonable return OF
the investment commensurate with
safety and soldity. While fortunes
have been made in the stock market in
recent months 1t is also true that seri-
Gus losses have been incurred, and that
the experiences of some of the promi-
nent spectators have been unpleasant
IN the extreme.
During the dull days in the stock
market the demand Tor good bonds has
been acCentuated, ana in recent weeks
the most noteworthy phase of the finan-
Cial district has been the Improvement
in the tone of the bona market. In
deed. the continued demand for good
bonds is an indication that the present
Will prove TO he d good time for the
financing of those enterprises which can
ofer security of the highest grade. Cir
cumStanCeS have served to leave the
current business on the exchange large
ly in the hands of ha bitual traders and
IN their case the recent tendency has
been to limit the movement OF prices
to relatively narrow limits. The fund
amental conditions are such that d great
majority look hopefully to the future
of the security market but there are
enough restrictive influences to induce
caution among the majority of those
whJse buying accounted for the rise in
prices which preceded the sinking of the
Lusitania.
Bidding for Bonds.
These considerations do not apply in.
the same degree to the bond market
although they. of course, exert some
influence there, and it has come al bout
that bond dealers are finding encour-
agement in the responses which they
are now meeting from investors. Apart
from the demand from individuals who
have funds to invest financial inStitu-
tions aL&put under incentive to invest
in bonds by the abnormally low rates
for money both on call and on time.
The tendency of late has been toward
increased ease rather than toward any
hardening of rates, and this has N
creased the pressure upon financial in
funds elsewhere than in the collateral
loan market. Scarcely day has
passed recently without its announce
ment of the receipt of further in
stallment of gold. and each such ar
rival tends to emphasize the ease in
money. That is factor which almost
certainly will make itself felt in the
stock market. but it's most immediate
influence SO far as securities go is in
the bond market
1t has. therefore. beeO considered a
most opportune time for New ork
city to test the long term loan mar
ket, and Tuesday next the controller
will open bids for s11 ,GC0,o0 worth of
Al per cent city bonds, of which
$46,o0o,00o are to run for fifty years
straight maturity. and S25,000,o00 are
to mature serially in one to fifteen
years. The sale in general is to fund
approximately $4,000, 900 of outstand
ing corporate STOCK notes, $4,000, 900
of which were included in the sale of
$100,00o,000 of short-term cone, two
and three year, securities made last
Septen Der.
AS New York city is by far the
largest borrower ~ the municipal loan
market, and as !.-arc:al conditions are
to a large extent gauged by the terms
which this city is able TO command
in its important offerings. investors
in every part Of the country VIII be
particularly interested in the forth :
coming sale. 1t might be pertinent to
inquire why. at this time OF money re-
dundancy. at a time when the banks
are crowded with unloaned funds. the
city of New York finds it necessary
to offer its bonds at fiz per cent in
stead of or even 3i2, as 1t has so
often in the past. In the first place,
we must consider that the city is seek
ing ffty-year credit and not tempo
rary accommodation, and that while
the banks have an oversupply for cur
rent necessities. that cannot SO easily
discount the future a study of the
mortgage market at this time shows
that considerably higher rates are de
manded for prime mortgages than for
commercial ommodation.