Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-05-31
GOSSIP OF
THE STREET


During the early days of last wecl,
the stock market was subjected to shock
after shock coming in the shape Of
dividend reductions and dividend sus-
pensions on many industrial and rail-
road issues that had long held places
high in the Investment class and the
action OF the directors Of the companies
represented by these stocks spelled in
many eases disaster for security holders
who had depended on revenue from these
shares for their maintenance.
The highest Importance was neces-
sarily attached to the discuntinuaucc Of
dividends on industrial preferred
shares, this action being taken on Cen
tral Leather preferred and on both
classes of the preferred of the Remins-
ton Typewriter Co. II hnd been in
sisted by many of those who have be-
come prominent in the last score of
years dating back close TO the beginning
of this century that the greatest safety
for investment could be obtained in in =
duStrial preferred shares. James r..
Kecnc being one who held TO this belief
Those issues, however. have proved to
be no better fortified than the common
stocks of many industrial corporations
aud the question has been raised as to
ferred stocks must be after they have
been dropped from the dividend paying
list. Central Leather preferred is a
good example Of the prevailing rondi-
tions Early in 1920 it sold above los.
but last week on the day the dividend
suspension was announced It dropped
from 20 To a. II is 10 be noted. how
ever. that Central Leather preferred sold
below tho price reached ON the decline
in April, when it declined TO below 6N,
although at the time no reference was
made to It's dividend outlook.
"Saturation Point" in Bonds
The bond market never reaches the
so-culled saturation point. Whenever
the offerings have been particularly
large for n period of some weeks or
more the statement is regularly made
that the market will not take any more
bonds. This statement applies spccih-
caiiy to the offering of new issues by
banking syndiCateS. 1t implies that
dealers. rather than Investors. have
been filed up with all the bonds they
can take care Of for q while. II docs
not mean that the investors throughout
the country have no more money with
which to buy bonds or that they have
reached n point where they have no
disposition TO put their money in that
class of securities.
Investors always have money to put
in bonds. and they are always so
placing it. Sometimes they have more
than they do at others and sometimes
they feel that business and money mar
ket conditions justify putting "A larger
proportion of their available funds IN
that medium Of Investment than they
do at other times. II the bond mar
ket. so far as investors are concerned,
really reaches the snturati0n point
every few months. as II has been said
10 have done. investment houses would
he in II sorry plight. They arc IN"
principal FIRST hand buyers Of bonds
from syudicates. These distributing
houses look to private investors all over
the country to take the bonds of their
hands In the end they always do
The market for bonds has not been
characterized by striking features. AS
the week drew to close the Liberty
issues displayed greater frmneSS. with
the exception of the 3r2s. Foreign
Government bonds have been hclned by
the improved sentiment. both in Europe
and America. regarding the changed
attitude on the part Of the Germans
and the probability of their meeting tho
rpparotions terms The latter ShOuId
hr>p start things of in France to n
greater extent than has been possible
SO far. Improvement in Europe mPan'