Evening star., 1915-12-26
new YEAR TO BRING
GREAT STOCK BOOM
"January Rise" Should Call
for Heavy Buying, Says
Writer.
MANY EXTRA DIVIDENDS
WILL AID INVESTMENTS
Trade for Staples Touches Highest
Ever Known and Demand Extends
Even to Luxuries.

Even to LuXur1eS.
NEW YORK, December 25.-We are
now approaching the time of yeai
when the public interest in securities
dividends and reinvestments reaches 1ts
most acute stage. The interest and
dividend disbursements January lst are
always larger than at any other simi-
lar period. and the extraordinary num-
Der of special dividends that have beeh
declared during the month OF Deceh-
ber will add materially to the amount
of money available for investment after
the turn of the year. Bankers anu
brokers declare that far create
proportion than usual of recent STOCK
purchas sing has been done with an eye
to dividend payers, and the grea'is
increased earnings of many OIL oui
leading railroads and Industrial cor
porations has enabled them to pursue
very liberal policy in the matter vi
disbursements to stockholders
1t is conservatively estimated tna
the January disbursements OF inter
est and dividends Will exceed 9-'o,
600 900 and while some portion vi
this sum will doubtless be apprepri
ated to 4he regular living expenses W VI
the recipients, the larger portion "i,i
and its way back into investmen;
channels. 1t is largely because OF
these increased dividends that tns Ne
visible evidences OF prosperity arc ~
pronounced at this time.
Shareholders of the various corpora
tions have been well rememoereo III
the distribution of the enhanced pro-
IFS and it is largely because OF the
heIief that this money will find It's
way into securities that many conserF-
ative bankers and brokers LOOK 1or q
continuation of the upward movement
in security values
Record End of Year Dividends.
1t is estimated that the amount of
the end-of-the-year dividend and in
terest money will be larger than IN
any corresponding period in the his
tory of the country. Last week elgh-
teen companies increased disburse-
ments to their respective shareholders,
comparing with twenty-five companies
in the preceding week. In other Worus'
shareholders of forty corporations IN
two weeks have received mli!ions OF
dollars in excess of regular dlVloehh
payments Last week two companies
declared initial dividends, two resumed
dividends, and three increased their
respective rates. Mine companies de-
clared extra dividends and two COM
panies provided for the payment or
dividends in arrears.
The earning power of the majority
of railroads, 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 bankin e
Institutions have also shown great
Hberality in dealing with their ofhcers
and employees, their ability to do so
being the resultant of their enlarged
profits during a year of exceptional
activity.
1t is at this time of the year. also.
that the seasonal buying in anticipa-
tion 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 Or
q somewhat limited scale. the sales
records showing the December turn
over to be a more limited basis
than that of November. Million-shar
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
more active period, the average daily
sales being in excess of one million
shares.
American Liquidation Abroad.
Each incoming steamship from
Europe is bringing to this country
quantities of American securities for
is going on at much larger basis
than six months ago. and the reasons
attributed to the movement are two:
The low rate OF foreign exchange, or,
conversely. the high rate of American
exchange, and the necessity of foreign
investors to convert their securities
Into cash In order to procure the ne
cessities of life. In many instances
the deprivations due to the war have
already compelled these foreign in
vestors to use up their surplus savings,
which might be called the line of first
defense, and now they are beginning <
to call upon their security investments,
the second defense line.
This European liquidation. while not
sufficiently large to cause any embar-
rassment in financial circles, is never
theless held responsible for the failure
of many securities to record the gains
that they would naturally make. An
estimate Of the amount OF such secu-
rites sold here in the past month is
between seventyfive and one hundred
million dollars; and while the buying
power of a substantial part of the
public is being absorbed in securities
privately placed from abroad a rising
market can hardly be hoped for SO
long as stocks pour in on such large
scale.
II Is believed that most of E,urope's
offerings are coming from London. al
though Germany is still feeding out
her American bonds steadily. They
80 pct4AS lidHHitd Dl a lt" OF the more
important banks and banking firms
and because of this procedure nurner.
Gus smaller concerns which disposed
OF great many securities on foreign
orders In October and November are
not active now. In fact there are
banking and bond houses which have
handled very few bonds this month 70,
European clients. Current offerings
are said 70 he comprised largely ol
railroad bonds. with stocks much less
In amount than they We're in Europear
liquidation three months ago. II is
believed that the bulk of our stock,
has already been disposed Of
Sterling Exchange and Local Money
The apparent ability of the Rr,tisr
government to secure ample credit or
this side of the Atlantic is bavtpe
It's effect upon the sterling exchanp,
market. which now Is assuming a no
sition more nearly approaching nor
NAL. The new mobilization plan 70,
American securities in London viii
also help along this situation and tb,
British chancellor of the excheouel
has promised a definite statement a,
to the actual details of his plap Mo.r