Mohave County miner and our mineral wealth., 1920-11-27
BOND GAMBLING NOW
 RAMPANT IN N. '.

Gambling is rampant in the bond market in the financial district. Speculation solely for the rise was never so great in bonds in the history of Wall Street, according to promin- ent investment bankers, who are de- ploring present conditions as a men, ace to the individual investor.
 "They're going crazy. l never saw new offerings go over in such a slam bang way in which they are being put thru at this time" said the head of one of the largest distributing houses.
 The gambling in new bonds is largely for the account of brokers, who, realizing the rapidity with which each issue is absorbed and the price advances to premium, put in large subscriptions for the new securities, with the result that these, together with the applications for legitimate investors, swell the total subscriptions to such a figure that the real in vestors get only a small portion of what they applied for and are forced to go to speculative brokers to get the balance, only at higher price.
 Because of the gambling subscrip- tions, and the word gambling" is used in the true sense of the meaning it has become common now for new offerings to be five or six times over subscribed. Owing to the necessity of cutting down allotments everybody interested except the gambling broker, is sore. The investment banker is mad because he is unable to give his client anywhere near the amount of bonds requested, and the individual investor is dissatisfied at the small amount of bonds awarded him or her on the application.
 Syndicate managers are also dis pleased inasmuch as the bonds, altho sold, are not placed where they will "stay putt. In other words, they are not awarded to persons who purchase solely for income. The minute one of the new securities shows signs of not advancing the speculative brokers inn mediately sell the bonds in the open market, thus forcing the syndicate managers who support the market to purchase back the securities.
 Owing to the heavy speculative sub lo ,oI hoe {o hn done by clerical forces of syndicates in tabulating and alloting the securi ties has been greatly increased and the clerks are time and time again forced to work the greater part of the night cleaning up the work.
 The participation of the speculative brokers has also swelled the number of members in syndicates offering new issues.
 "It is an evil which has been recog- nized ever since the war began. said one prominent investment banker, land there does not seem to be any correction handy at this time. The Investment Bankers association has considered the matter time and time again, but as yet has not been able to decide upon solution.
 During the war it was necessary to include in syndicates as many banking and brokerage houses as it was possi- >ble to obtain. This was necessary be- cause of the huge amount of new of ferings which had to be disposed of. With the elimination of the war fi- nancing and turning to corporate is sues it is not necessary to have the big distributing machine which was created at that time. There does not seem to be any way, however, by which the machine can be reduced in size. It does not seem fair that those who were permitted for the first time to participate in the syndicate created during the war should be eliminated, and if they are the houses would be