Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-11
operators with Secretary Hoover, it
is hoped that this end will be attained.
BuildiUu Boom Starts


Reports show that the building boom
cessation of building activity is getting
under Roadway. All sections Of the
country are undertaking unprecedented
construction of homes. There is also
pronounced activity in the construction
of office buildings. apartment houses,
and in remOdeling work. The wholesale
lumber business as a whole shows 9
substantial increase in orders of all
kinds.
There has also been a decided i'm
|provement in the automobile industry
and many plants which a few months
ago were idle are now reported as
running at full capacity. The improve
Iment in this industry has been so rapid
as to surprise even government experts
who have been closely watching the
situation. It was thought by some
that the coal strike would have a re-
tarding effect IN all metal working ac-
~tivities, but such does not seem to be
the case. Makers Of popular priced
cars of all kinds are running behind
in their orders.
Another line Of industry which has
been tremendously important in taking
up slack is that Of the manufacture
of radio apparatus. 1t is estimated
that about six months ago there were
not over 10000 radio receiving sets in
the United States, while at the present
time the figure is placed at over CO.,
1000. This sudden popularity is due
largely to the establishment of high
power broadcasting stations in different
parts of the country, which provide reg
ular programs of entertainment, news,
md ~arnro1 ipforrn oAr TbA-4 hn-o
been no decided improvements or
changes in radio receiving apparatus
during the past six months. so it would
seem that the public is just beginning
to wake up to the possibilities of this
new field. The sudden demand for
radio equipment has given rise to i'm
portant factory conversions among in
dustries whose former products have
not been in demand. The manufacture
of radio apparatus. therefore. has serv-
ed as a helpful fill in during a period
of relatively stagnant industry.
Broadly speaking. the price Of bonds
is governed by two factors: First.
the demand for money. and second, the
influence of the income tax. During
the past four months we have seen
constantly ch%eapening money, largely
because the capital demands of industry
were so substantially lessened because
of diminished business. Under such
conditions free money, which ordinarily
finds its way into the channels of COM
vestment. With the resultant increase
in investment demand comes a rise in
bond prices and a consequent lowering
of the interest return. Any change in
the money market, therefore, is always
reflected in the bond market, the inter
est return on bonds usually following
the general trend of money rates.
The income tax features of bonds
are also another factor vitality affect
ing their price. Bond buyers of sub
stantial income who are subjected to
surfaces in the upper brackets can
well afford to accept the lower coupon
rate on a tax exempt bond in prefer
ence to a high rate on a bond whose
is subject to a tax. because by
the time the tax has been deducted
such an investor has less in actual
net return from his taxable than from
his non-taxable securities. Evidence of
this influence is seen in the present
for Liberty bonds.
While the price trend of investments
in general is showing but little rise,
there has been q substantial improve
in the Liberty issues. accounted
for largely by the increased conviction
the part of investors that the hold
ing of a few Of these tax exempt Sc
%curities is a good thing. All the va
issues of Liberty bonds are now
lowering around par. which opens up
the opportunity, especially for the
small buyer, to convert these lower
rate investments into those bearing a
return. If a holder of Liberty
bonds happens not to be subject to
heavy income taxes, he will oftentimes
find it to his advantage to make such
conversion into higher rate invest