Great Falls daily tribune., 1920-06-20


Chi Milw. & st. Paul As deb. 1884 55&
Montana Power Co. SIS ...... 1943 77S.
BOND MARKET ATTRACTS
INVESTMENTS DURING WEEK
BY Wells hickey Company.
The major interest in the bond market
during the week seemed to center in the
fluctuations of Liberty bonds and Vie
tory notes, the daily price fluctuations
in these issues largely denoting the gen
eral investment activity. One favorable
feature of the situation is that there has
been extensive investment buying of
government issues ON all the recessions.
The effect of this on the market. how
ever. has been largely offset by the ne
cessity many corporations and business
men have been under of securing work.
ing capital through the sale of their gov
ernment securities.
1t is believed in some quarters that
we are on the verge of more active
demand. especially for railroad securi-
ties, both in new and old issues, and also
in public utility offerings. There is a
decided improvement in the attitude Of
municipalities towards public utility con-
Germs, which doubtless in many cases
will result in the increase of tariffs so
urgently required because of increased
costs.
In regard to the railroad securities,
many old standard bonds are now selling
at prices which will bring as great a re-
turn as some of the newer issues. Def
mite announcement of an advance IN
freight rates, now momentarily expected,
will do much to stabalize railway secur-
ity values and to stimulate activity in
these investments; also it may have the
effect of bringing to a head a consider
able volume of impending railway financ-
ing.
New Issues Absorbed.
Foreign government issues maintain
ed a strong undertone with a fairly good
demand for most of the securities in
IS held at close TO par. while there was
every evidence of increased strength
both in the United Kingdom 51a's and
in the city of Paris 6's.
New financing during the week was
large in volume, amounting to over $40
600, coo, practically all of which was
readily absorbed. Among the major is
sues were the S15,00,0O0 per cent
Equipment Trust certificates of the
Southern Pacific Railway company; the
S1j000,000 c. & n. W. Railway com
100000 Hershey Chocolate corpora
TONS first mortgage 71a's sinking gold
fund bonds; and S6,00O,0OO of five year
~ per cent convertible gold notes of the
American Sumautra Tobacco company.
All these issues were backed by respon-
sible syndicates and were absorbed in
record time.
New Financing In My.
According to figures just recently
made available, corporation financing
continued heavy. in May. The total Of
railroad, industrial and public utility is
sues floated during the month being $500
$1,000, compared with $591 .2S1 600 in
April and $249, 1884 900 in May, 1919.
road financing and a corresponding drop
in industrials. The aggregate of new
railroad issues sold during the month
was $74,0O0,000. of which the largest and
most important item was the Pacific
Fruit Express company equipment
Z per cent notes for S25,OO0, 600 Other
important issues were the Continental
National Railway equipment per cent
notes for $15,00,000; Delaware & Hud-
son 10-year per cent bonds for S1O,-
10000, and Louisville & Nashville Rail-
way per cent notes for $7,5OOO0O.
Since January, 1920 the grand total of
aggregates $1.752, zoe, ,OOO,, of
which about $962, ,Ss0.000 was for new
stock issues.
General Business Conditions.
General bushes conditions are NOT
much changed from a week ago. There
has been Improvement in spots in the
transportation situation, which has been
big help in releasing goods of various
kinds and IN liGuidating credits which
have been tied up through inability TO
obtain delivery of goods in transit.
Coal distribution Is progressing sat-
lsfactorily, although quantities at the
docks at present are far from normal.
The railroads report substantial progress
and that efforts are being made to keep
the important mines supplied with empty
cars.
The decided falling off In mail order
buying Is being viewed with apprehen-
sion In some quarters. 1t seems to bs
the general consensus Of opinion, how
ever, that this condition is q direct re-
suit of a more conservative buying atti- |
tude on the part of large percentage of |
consumers. 1t is believed that our era
Of reckless extravaganza is gearing it's
end and that people with money are be- |
ginning to consider carefully before max I,
ng substantial expenditures.
The demand for general commodities
IS good and in most lines retail sales are |
keeping up to their recent levels. Whoia- |
salers, report, however, that buyers are |
more conservative in making their COM
nitments than for some time past, large
Y because of uncertainties in the present |
price situation. There Is growing
.endency on the part Of retailers to re.
luce their stocks materially and to buy !
n quantities only sufficient to meet |
heir week-to-week demands. Labor |
ind material costs are Just az high as
.ver. and for this reason it seems almost
that the reductions to con-
iumers at the retail end can be any
,ther than temporary.
Foreign Exchanges.
The outstanding development In the
ituation back Of foreign exchange trans
afirns Hv,r rfn~ tho HAnk vuac ha on. |