The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-01-28
Business and Finances
BY W. S. Cousins. Editor The American Banker

many municipalities were unable to
secure bid on bonds that offered
more attractive returns than those
which make UP the present market.
"A significant commentary upon
present conditions is the offering by
New, York state of $25,0O00OO gold
bonds January 9th. These bonds car
ry but per cent interest, whereas on
those sold at this time last year it
was necessary to mark the interest
rate at four and one-quarter per cent
in order to insure their acceptance by
investors. 1t is surprising to note
that, notwithstanding the material ad-
vantage in all classes of bonds, the
general average price is still some
what below that Immediately preced-
ing the war. Anglo French SOS are
becoming more rapidly absorbed, the
security return and marketability Of
these bonds making them more pop
ular form of investment The issue is
largely employed for the temporary
investment of reserve funds, and the
market for them is constantly broad
ening. Another issue which has en-
Joyed a tremendous appreciation in
recent months, due to the splendid
financial rehabilitation of a company
winch one year ago was thrown into
bankruptcy, is the International Mer-
camille Marine AZ per cent collateral
trust certificates. There is now every
possibility that these bonds, previous
ly detaulted as to interest payments,
will ultimately be redeemed at par to-
gether with all accumulated interest,
so that their present market price is
not excessive.
Good Business in the West.
Reliable reports from the West and
Southwest tell of healthy increase
in domestic business, the prosperity
OF the farmers and small merchants
having done much to strengthen the
belief that better times are surely be-
fore It's. One important authority
states that highly significant devel-
opment has been the broadening de-
mand for lumber and the revival of
building operations. There is also
a better tone to the real estate mar
ket in various cities. All this means
4 good deal, for real estate is about
the last thing to feel depression, as
we'll as the last to recover from de-
preston. Within few weeks there
has been renewed activity in large op-
erations, calling for heavy OUTLAWS OF
capital. The increased valuation
shown by building permits would in
dictate that capital all over the country
IS passing again into such investments
This state of affairs is in marked con-
trast with the conditions existing sew
"ral months since. when, the real es-
tate market was dead, and it became
difficult to obtain mortgage loans al
anything like reasonable rates, even
UPON hiph-grade, improved property
It is evident that the market is on the
upgrade again. although operators are
still proceeding with the utmost eau.
ton. SO as not to overdo the move.
nent or go beyond their depth. In.
surance companies have made large
investments in MORTGAGE loans and il
looks as if somewhat lower rates
would prevail in this field later on
Some life insurance companies. how
ever, are not able to make as large
investments of this character as they
otherwise would. because Of heavv de
'nands made upon them by policy
holders for loans on the security O
+heir policies.
w. s. COUSINS,
| Editor. The American Banker.