Great Falls tribune., 1921-01-23
Sign of Confidence.
INVESTMENT MARKET TURNS
TO SCRUTINY OF RAIL BONDS
BY Wells Dickey Co.

The bond market of last week pro-
ceeGed on an even keel and had no
outstanding characteristic except per-
haps the renewed and firm interest in
railroad bonds. The attention of the
investment market as whole seems
to be directed to scrutiny of rail con-
ditions and the underlying facts have
shown our transportation system as a
whole to be in a fundamentally sound
position. There was wide spread buy
ing Of the higher grade first and sec
ond lien longterm bonds.
There were several important new
issues brought out during the week
The Grand Trunk Is year 61a equip
mert trust notes to an amount of
$12OOO,0O0 were offered at $94.5O
and interest to yield Z per cent? The
Steel Il Tube Co. of America also
brought out a $1OOGO,OOO per cent
issue at $685. to yield about TAO
per cent. The Detroit Edison Co.
offered an issuance of S5.532,6O0 of
10 year 8 per cent convertible deben-
lures at par and interest to yield 8
per cent. All these issues were we'll
received and the syndicate managers
report an early oversubscription.
Liberty Bonds React.
Liberty bonds showed a somewhat
reactlonary tendency and number of
issues declined materially from the
high levels Of week or two previous.
1t is estimated that since June 80 of
last year the rise in value of all the
various Liberty loans outstanding has
amounted to over 100000 900, which
condition in itself is mighty factor
in restoring public confidence in these
investments.
One of the interesting developments
of the bond buying market during the
past few years has been the surpris-
ing increase in small sales to people
of moderate means. Flotation of the
various Liberty loans exercised a po-
tent educational influence in familiar
izing thousands Of people with bond
investments who hitherto had abso-
lutely no knowledge along these lines.
Such development following di-
rectly on the heels Of period of un-
usual prosperity is indeed q healthy
sign. People from all walks of life
are becoming financially interested in
various industrial and public enter
prises with the result that they are
assuming a more friendly attitude to-
ward corporate operations. They are
taking more time to study the business
of corporations and gradually are be-
ing brought to realization that such
business when properly conducted is
distinctly in the public interest
General Business Conditions.
Business conditions as whole are
beginning to show slight improve
ment. Retailers in most sections have
carried on drastic liquidations through
cut price sales and now are beginning
to find themselves in position to re-
plenish their stocks at the new price
level. Dunn's and Bradstreet's indexes
for January show a marked checking
in price declines of basic commodities
and seem to presage an early cessa-
ton of present deflationary tendencies.
Particularly is this true as regards
basic commodities. There is still much
need. however, for further deflation
in number Of retail lines and also in
the price of services.
As further stabilizing influence
and one having vital effect upon the
resumption of buying has been the |
Buy Now" campaigns conducted in !