The Washington times., 1922-08-17

!. STOCK ISSUES !
!. PR0VEPOPULAR
Said to Be Taking Place
of New Bond
Offerings.
By MUNROE ROBERTS.


copyright, 1899. by Cosmopolitan News.
service.) ua.
NEW YORK, Aug. 1.-THE recent
successful sale of number Of large
blocks OF stocks of mercantile enter
prises has given rise to the inquiry
as to whether these offerings have
been taking the place OF new bond
offerings. 1t is significant that since
the first part of August there was
been a notable falling off in new
undertakings Of domestic Industrial
bonds, while the market for such
bonds has been constantly widening.
Underwriters Of high-grade dividend
stock have quickly stepped up into
the breach and have wisely taken ad-T
vantage Of the situation.
AS a matter of fact, a good many
of the listed preferred dividend
stocks belong to the investment
classification rather than to that
of speculation. Where such invest
ment stocks are chosen with conser-
vastism, they not only return a
handsome yield to the investor, but
they contain splendid prospects for
profit in advancing quotations over q
period Of years. 1t has not been
uncommon, for example, for pre-
ferred stocks to advance 80 to 40
points in the last two or three years
and such advances have been abso-
lutely by the performance Of the Is
suing companies. OF course, many
bonds have shown a splendid in
crease also, but their advances have
been due to changes in general
monetary conditions rather to partic-t
ular performances In specific COM
panies. a
Investment bankers continue to
report a heavy demand for bonds in
small denominations, the so-called
baby bonds" The baby bond is an
invention rather than a discovery,
its introduction being due to an
ingenious desire on the part Of an
investment banking house to sell, to
different investors, fractional parts
Of a $1,000 bond. The plan was so
successful that other investment
houses and other business enter
prises soon conceived the idea of
issuing their permanent bonds in
blocks as small as 800, and q
splendid business has been built up
on this foundation.
During the war, II Is said that
United States increased from 250, 900
to over 100000. Unfortunately,
however, a great many Of these
bondholders were only temporary
investors, and they have zen dis
posing Of their bonds quite heavily
since the armistice. In some cases.
this has been induced by absolute
necessity, in others to the desire to
exchange a good security for an
article Of luxury. 1t will be unfor-
tunate If all the promotion which
was successfully conducted during
the liberty loan campaigns should
fail in it's object to create a perma-
nent interest in prime securities in
this country.
II is reported that the new City
Of Montreal $4,000 900 loan will be
issued during the early part Of
October, as soon as the Canadian
government loan has been dis.
posed of. Montreal issued $4,000.
900 Of 5h per cents last February.
1t has, however, a number of 8
per cent issues outstanding which
it is quite anxious to refund at a
lower rate.
A New York banking syndicate
is offering an issue of 100000
City Of Tulsa, Okla, 5h per cent
sewer bonds, dated May l, 1922.
and due $4,000 annually from
May 1. 1922 to 1947, inclusive. at
prices to yield AIS per cent.