The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1916-07-05
The CINCINNATI
MARKET REVIEW
(By Channer g sawyer.)


and advance I'm market values OF secur-
tiles generally has been very rapid and
In some cases furious. The reaction
was due, and the greater the reaction
the healthier the situation.
Up to the first OF April, municipal
bonds advanced each week; the de-
mand for them seemingly far exceed
ing the supply. The advance in val
ues prompted many to sell their mu-
nicipals and reinvest in high grade
corporation securities, yielding a bet.
ter income.
Short term notes then afforded an
excellent vehicle to carry investment
funds. The demand for these notes
became so great, and commercial
money became so low, that corpora
tions generally turned to financing
their needs on a permanent basis.
The well secured and carefully safe
guarded bonds are very well dlstrib-
uted and one can find but few issues
that will yield per cent. The pre-
TERED stocks of established corpora.
tions of good earning power, ample
assets and properly restricted in the
issuance, are in strong demand. I'm.
doubtedly this class of stocks will con-
tinue to grow in favor for the reason
that a good preferred stock affords a
fair income, and in most cases has
nearly as strong position as a bond &.
The most spectacular securities
have been those affiliated with the au.
tomobile industry. In talking with
probably the most prominent figure
connected with the automobile indus
try now before the public, the writer
advanced the question as to whether
the growth in the production Of cars
did not foreshadow a dull period with.
in the next two years; the reply was,
II am firmly convinced that the year
1916 is the real start in the growth
and expansion Of the motor industry
and that the automobile is but in its
infancy"
From the investments which are be.
ing made in new plants, new machin.
cry. contracts which are being entered
and parts, those who are in control OF
the automobile business are thorough.
ly satisfied in their own minds that
there will be a greater demand for
cars, sufficient to justify greatly in.
creased production. Otherwise, they
would surely be satisfied with their
present large earnings. You can point
to the masters of the industry and
nearly everyone of them is for ex.
pansion.
At this time the purchase OF certain
stocks, accessory company's stocks
and motor company securities, that
have had a reaction from the first
squirt might well be considered In
our opinion the failure of the console.
dation OF the WHY'S, Chalmers and
Hudson Companies will mean in the
end greater benefit to the securities
market in general than 1t would had
the merger gone through. The demand
tor increased production; for greater
income and higher efficiency in opera.
ton, and for the economies and saw.
ings thus effected will necessarily lead
TO mergers of companies making parts
and accessories.
Those who are fearful of there be
ing a let-up in business due to the ces
sation of the European war can again
take heart from the fact that the new
loans which have been arranged by the
different countries means that more
goods are 10 be purchased here from
additional credits thus established by
that loan.
Our Midwest has not been affected
by the general craze for any and all
sorts and kinds of securities common.
ly referred to as cats" and dogs"
We are more conservative out here
and Will take our profits slower, salts.
led with assured income as against
large prospective profits. However,
we have not been without our so.
called war babies" There have been
large profits made in Ohio Cities Gas
common stock, due to the development
OF the West Virginia and Ohio oil
fields. This stock has had reaction
of practically thirty points from its
high" and the earnings are growing
each day with new wells producing
and others ready to be brought in.
Another security, Cities Service
Company, is showing over 20 per cent
on the common stock. The large gain
in earnings has been partly due toI
the development of a large oil field
in Kansas and Oklahoma.
Both these stocks have had an adj
vance of practically $4,000 per share
in less than two years.
The Development of the process for
the extraction of gasoline from natural
gas is going to be quite a factor in the
earnings OF these properties as well
as properties like the Columbia Gas
and Electric Company.
Business continues to hold up well,
although there has been some let-up
in the urgent demand for material due
to war business.
The United States Steel corpora.
TONS statement OF untitled orders is
good; copper exports for April were
over $13.000,000 as against $1l 1885,.
TIC for the same month in 1915, which |
further proves that Europe is still buy.
ing. Notwithstanding reports to the
contrary.
The report on the winter wheat
crop is not as good as expected and
shows considerable loss, but when one