Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-25
ALL SIGNS VERY OPTIMISTIC
IN NINTH FEDERAL DISTRICT
By Wells. Oickey Company

'SHSJ
The events of the past week were
highly favorable so far as the domes-
tic situation is concerned and foreign
news appeared to be accorded only
scant attention. The recovery of bust
ness in the United States is progress
ing favorably and all signs are ex-
tremely optimistic. especially in the
ninth federal reserve district. where
crop Indications are so favorable. Re-
ports from Montana, the Dakotas and
Minnesota all indicate that crop pro-
spects throughout this territory are
better at present than they have been
for a number of years past that unless
unusually unfavorable weather condi-
lions should arise the farmers in the
northwest will reap an abundant har-
vest.
When it is considered that the past
two years have been so decidedly I'M
profitable for agriculture, it is not hard
to understand that prospects such as
these should be a decided stimulus to
business generally. Reports from mail
order houses and other sources which
serve as a fair index of farm buying
power indicate that farmers through
out this territory are coming back into
the market in increasing numbers. The
farm machine industry is looking for
ward to a tremendous business not
only because of the revival of buying
power on the part of agriculture, but
also because there has been so little
purchasing of farm equipment during
the past few years that there is an
actual shortage which must be met.
The action OF the securities mar
kets last week was not without signi-
81 In Tho cfank marriott fhQrn
was a general decline and bonds re-
acted somewhat in sympathy, especial
" among the older listed issues. The
action of the bond market, however,
with relation to new issues was quite
another matter. The absorption of new
offerings has been going on at a salts
factory pace seeming 10 indicate that
the buying power of the investor is
undiminished.
Owing to the tight money markets
and high interest rates from 1919 to
1921. many corporations found it nee
essary to issue securities with coupon
rates of seven per cent TO eight per
cent. Precautions were taken at that
time to include callable features so
that advantage might be taken later
of declining interest rates. Now that
money appears to be on a permanent
" lower level many corporations are
considering methods of financing for
~refunding high interest bearing oans.
Already several corporations have
called such issues and have replaced
them with loans at lower rates. No
general rule for calling these bonds
has been adopted. Some are callable
at any time: others only after a
stipulated period Of years. Nearly all,
k-,or cro noi1ahla nt a c,hsfonftnI
premium over par to compensate the
investor for su~rrendering them. Good
year Tire and Rubber SIS of 1941 are
callable on any interest rate at 120.
United Drug Company SIS of 1871
are callable at 115 on any interest
date. and a large number of seven per
cent and eight per cent bonds now out
standing are callable at 10. Investors
should become familiar with the call
able features of their holdings so as
TO be in position to take advantage of
market movements in cases where the
callable figure is below prevailing
prices.
New bonds offered to investors in
the New York market this week to-
tailed SS1. 1863 1900 par value. CLASH
fled as follows:
State and Municipal ......S 9.560.000
Public Utility .12,639.ou
Foreign % 900. 900
Industrial 90. 100000
Railroad l., 600. 900
The largest single offering of the
week was the 500 1000. 900 issue of the
Kingdom of Serbs, Croats and SLOW
enes. the first external financing un-
dertaken by this new political unit.
The bonds, which are SIS, are guaran-
teed by certain fixed tax income and
mature in 40 years. They were offer
ed at 95H, to yield $40 per cent.
Public utility offerings during the week
were larger than for several weeks
previous. the average yield being
around six per cent. However. there
were some bonds offered which sold as
high as eight per cent and others as
low as 495 per cent. The largest
single offering was the 100000
Public Service company of Northern
Illinois first and refunding 5h's,
which were offered to yield eight per
cent. The single rail issue Of the
week was S12, 1000. 900 Cleveland Union
Terminal company fifty-year 5h's,
guaranteed by the railroads which en-
ter the Terminal. They were offered