Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-11
BIC STOCK DIVIDENDS
BRING MARGINAL CALLS
Traders Likely to Receive No
tees This Week Following
Recent Melons"
LIFTED OUT OF DESPAIR RUr
Bankers and brokers Keep HarpinE
on tho IIuEcncns Of brokerage
Lonns-Stnndnrd OIL interests Com
adhered Lenders In Market.
by Drondnn Wall.

ny BrOHunn wall.
NEW YORK. Dec. lO.-Marginnl
traders probably will receive late this
week the first unpleasant effect Of
the many stock dividends which have
been declared: "rhc Angels Of
Death" which Is "A favorito tarm for
margin clocks. will start this week
asking for additional money from
tnose traders who are carrying high
priced shares on which big stock
dividends have been declared. In
quiry reveals. for instance. that 4
man having si.50o margin on 100
shares of old National Biscuit, VIII
have to put up sufficient margin to
carry the 700 new shares he Will re-
ccive-
As "A further instance. n bank would
be willing to lend firm on / 900
shares OF such stock. but would
DO quite unwilling To carry 1000
shares OF stock in the same loan.
Lifted Out OF Nut.
Tho stock market has been lifted
out OF tho rut OF despair by tho
Presidents message and tho annual
report OF tho Secretary OF tho Treas
ury Mellon. Tho lattcrs remarks on
taxation did much TO revive confidence
In tho bull campaign and allay APP
prchension. Stocks In general are
expected TO continue discounting the
Improvement being witnessed In
many limos OF Industry. Many securi-
ties have moro than discounted the
business bettcrment. but the majority
have not
Many bankers and brokers keep
harping on tho hugcncss OF broker
ago loans. They compare them with
figures OF years past. They forget
that brokers' loans must show n big
Increase compared with other years,
owing TO the bIg increase in tho num-
Der OF securities dealt in ANY
brokerage house that has not shown
substantial expansion In its borrow
ings from banks has been going back
ward brokerage leans arc now
placed at approximately $4,000 900
history always repeats In Wall
Street Any veteran In the financial
district VIII confirm the statement
that shares are split up into a larger
number OF certificates because the In
s!ders are DESTROYS Of transferring
their shares to the general public.
Standard OH Int-rcsta Lend.
Standard OIL interests arc consider
ed leaders In the stock market. Their
opinions are coveted. The Standard
OH shares arc being reduced in mar
value 10 facilitate distribution TO the
public. The new stocks were not I'm
readiness for the contructIye cam
palHn in stocks OF the last year.
Through stock dividends and rcduc-
tons in par value the shares arc
no" within reach OF the average per
son. II VIII be necessary TO have an
active and strong market In order
10 distribute the shares TO the pub
lie
10 make tho stocks look nttrac-
i've 10 the prospective Spectator and
investor. some Inducements Will have
10 be made. For this rcagou rho
street VIII soon begin TO hear report,
concerning prospective increases I'm
'he diEidcAds OF Standard Ons tina,
h"'" been spit UP. II should be borne
IN mind that corporation manage.
ments do not split UP their stocss
INTO smaller units because they liya
inc pretty certificates.
europe Is not nearly as bankrupt
as most people are being led to he.
heNc IT develops that some Euro
hean countries have recently appear-
'd in the bond market as sub
,'""''d! buyers. This buying has
ncch especially heavy In British
Dutch and Canadian securities An
authority states that approxjmatciy
s"""o,9Oo Of tho $4,000. 600 "a, n,r
cent New Netherlands loan is now
hc!d by Dutch investors Also ,b,,
about sio.00o.0o0 OF tho second 900
"op'o9o loan has also found it's wav
INTO Dutch strong boxes. England
mas been a large buyer OF Brazil 7is
PCT cent bonds. About $4,000. 900 Of
me Sl5,ooo.oo0 placed in tho United
cites mas been taken 10y English
anNcs,ors' holland investors are also
absorbing Canadian govern
securities on liberal scale. Will
""iSs investors are buying A,p,ri
can bonds Most prominent inv,s,-
mcnt bankers look for steady i'm
proVcment in the bond market