Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-03
EASIER MONEY
MARKET BRINGS
BOND SHORTAGE
Better Movement in Business
Seen in Rising Demand for
First Glass Security.
Special to Indiana Daily Times
and Philadelphia Public Ledger.
By q II. EVANS,

by T.. u. EfANS.
CHICAGO, Sept. 3.-To those who read
business IN the lines of the security mar
ket rather than in the performances here
and there of merchandise nothing is more
significant than the present position Of
the bond trade. That position is we'll
defined by one expert, who says the mar
ket recently has reversed ITSELF that in
place Of an excessive supply there Is
shortage, and that the demand is fair
Some of the houses in this city have
pretty much cleared up their stock OF
this class Of security and constantly
buyers are coming in to purchase the
new issues at figures above those at which
they first were placed with the public.
And it is safety first" with them, the
yield being secondary consideration.
Advances in listed bonds have been In
progress for some time past, and the
newest are today selling at the high
est figures in their young life.
Seemingly the period during which
large American corporations must have
money or go to pieces has gone by All
will remember that many Issues of the
past few months have been mere life pre-
servers and that the interest rates on
them were extremely high. In part the
change is due to an easier money mar
ket, but probably still more is IL re-
suit of an easing in the minds Of the
public regarding the future of business.
If these aspects mean all they appear to,
the situation during the autumn will
be In striking contrast to that Of year
or two past.
STOCKS MAY
BRING BETTER PRICES.
These things are a promise Of higher
prices for stocks. 1t is experience that
the bond market marches ahead of the
stock market, and the status of the last
equity is such as to furnish further
promise. Prices are extremely low com
pared with those of two years ago, and
there are vast short contracts outstand
ing which must be met some time. The
obligations Of the bear element doubt
less will be the first motive power in
any bull market we may have, but when
on the market an advance has started
the outside investor or Spectator makes
his appearance. Farther on is the re-
vival in general business. Merchandise
trade does not improve because securi
aties have improved. Traders in securi-
ties simply have seen that general trade
is to have a lift and accordingly they
buy The stock market alwaya has an
X-ray on the industrial and merchan-
disipg conditions of the future, say one
or two years ahead.
The trade in agricultural products
makes its contribution 10 the picture.
II is by no means to the advantage Of
the country that the cotton crop OF this
year is TO be the smallest for a quarter
Of a century but the fact that buyers
Of the commodity have had the courage
to 90 into the market speculatively has
an effect on the minds Of business men
~ NH
certain other commodities are in small
supply and will accordingly buy. This
weeks lift In wheat is another item to
the good, ana the gain goes to that class
OF people which is most numerous ip
this country on whom we al depend and
whose prosperity we should ell be in
terasted in.
FARMERS TAKE
up THEIR NOTES
Along with these gains has come u
greater willingness Of the farmers to sell
their products and as u consequence one
Of the most serious drawbacks to bust
ness life in Chicago is in process Of re-
moYal, that is the great Indebtedness of
country banks TO Chicago banks, which
Is due 10 the slowness Of the farmers
heretofore in meeting their obligations
at the local banks
AtNSf AAN sumo u Ale INDICATIONS OF
better movement In business. The
great job or liquidation must stiu 20 on
however, for we have not remnants but
great aggregates Of unliquidated Habin-
ties, indebtedness to banks and in
dividuals that they would be glad 20
have paid off In spite Of the high rate
OF interest they are getting and still
many liabilities of men and corporations
little worn down and thr -atening the
very commercial existence Of the debtors.
Biggest of all is the labor market. which
stubbornly resists reductions wherever
the unions are dominant In this city
an arbitration on wages and many other
labor questions in the hands Of Judge
Lands for three months past still fails
Of any satisfactory outcome and as
many believe, may be failure-Copy-
right, 1921, by Public Ledger Company.