Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-16
sponsibility Of reparations. The dis
inclination on the part of GERMANY to

SRVA0AOAASS - SR8A0SASA0e AAO us
inclination on the part of Germany to
levy taxes necessary to meet repara-
tons may be due in part at least to
| the feeling of the government that the
action of the German people toward
| such q measure of taxation would even
make impossible the survival of the
German government.
Crop conditions throughout the
northwest continue the most favorable
for many years. There are few Sec
tons in the ninth federal reserve dis.
trict that are suffering in any marked
degree for lack of rain. While the
weather has been sufficiently cool to
allow a slow maturity, crops of all
kinds with the exception of corn are
showing excellent development, and
government estimates from the United
States department Of agriculture indi-
cate larger yields of practically all
small grains than since the bumper
CROP in 1915. Corn in southern Min
nesota and South Dakota is progress
ing satisfactorily, although a little be-
hind. Hot weather is needed to insure
maturity before killing frosts.
Business throughout the ninth dis
trict is already beginning to react fav-
orably to these favorable crop pros
poets. Reports of sales from mail or
der houses. department stores and
wholesale establishments all indicate
a considerable resumption in buying.
1t is felt that with a good crop, pros
perity of the northwest will be re-
stored.
REIMBURSEMENT demand made itself
felt in the bond market last week and
changed the trading from dullness to
unusual activity. Features of the mar
ket were the rise in Liberty loan AIS
to new high prices, and the establish
ment of high price records for the
year of high grade railroad issues. All
classes of corporation bonds gained
during the week and the combined av-
erages showed a new high for the
year. Low priced and low grade rail-
road issues which have been dormant
for some time also showed some activ-
ity, although the price at the close of
the week was slightly lower than that
at the beginning. New financing was
600 offered. Industrial financing led.
but most of such issues were put out
TO refund high coupon rate short term
bonds. There is little doubt that this
practice of refunding callable issues
on a low basis will become quite gen
eral and that there will be a substan-
tial volume of such financing during
the next few months. The price trend
IN the foreign government bond list
was irregular with a general downward
tendency. The French 719's and SIS
both showed substantial recessicns up
on news Of conditions in Germany.
South American issues also sold slight
ly lower in many cases. British 5lh's
were active and slightly higher.
A few years ago a bond bearing a
coupon rate as high as Z per cent was
a curiosity. usually a relic of the days
Immediately following the Civil war.
Then the great war again resulted in
a flood of I per cent and ever s per
cent bonds until incomes at this rate
again became commonplace. Financ-
ing. however, was more carefully rom
ceived during this recent period than
previously and borrowers protected
themselves from prolonged payment of
high interest rates by incorporating
call features in their loans, which made
possible refinaucing when better bor-
rowing conditions arrived. Now we are
seeing the fruits of this foresight.
With bonds selling TO yield 5 per cent
to q per cent instead of Z per cent
TO > per cent, many corporations are
calling entire issues of high grade
bonds IN order to refinance on the
lower basis. This flood Of redemp-
ton is resulting in the largest volume
of refinancing in all history. OF some
issues whose early redemption has
been announced, eight of the largest
represent a total par value of
S249,S 900. Investors should famil-
iarize themselves thoroughly with the
call features Of the bonds that they
hold for it is oftimes possible to make
attractive switches or TO work out con-
which react to the direct bene-
fit of the investor.