Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-08-20
FINANCIAL DIGEST
= THE WEEK i'm BUSINESS 8
Ry The Tribune.
By The Tribune.

panies doubtless will continue to
operate after October 1, weather per-
hitting, even though they have no
insurance coverage.
The railroad strike and the shop
mems strike have become closely in
terwoven; in fact, they have become
the Siamese twins of industrial OBJ
at present hinge upon the question of
! seniority. The railway executives seem
determined not to take back the strik-
ers on any other basis than at a lower
rank than new employees and those who
remained loyal. The strikers, on the
| other hand. seem just as determined
that their seniority rights shall be re-
| stored, giving them a ranking status
equal to that before the walkout. Both
| sides still appear far apart on this
question, despite the efforts of Presi-
! dent Harding aimed at a friendly set
tlement.
1t is difficult to estimate in dollars
and cents the cost to American indus
try of the two strikes now in progress.
Serious Interruptions have occurred in
a large number of plants which re-
quire a plentiful supply of coal for
continued operation. In the iron in
, dustry there has been a banking Of a
| RItdl lldAJ Ao ~ NAS RNSS AG"
weeks. operators apparently trying te
concentrate their production at d few
more strategic points. Despite the
seriousness of the present situation,
the strike has not been of sufficient
duration as yet to affect the industrial
average for the year. Railway earn
ings nave held up well during 1922, n
unless the railway men remain out for
several months more, the net result of
operations for the year will not be Sc
rIously affected.
The general tone of the bond mar
ket during the past week was dull,
with moderate volume OF trauing, the
greatest activity beng evidenced III
the Junior railway ~obugatlons. While
this particular group made the largest
advances during the week, yet the gen.
eraI tendency of the market was up
ward, despite the apparent dullnesS.
This may be due to several reasons.
First, of course comes the continued
easing of money rates. Then, too, ap-
parently a large part OF the investing
public is not entirely convinced that
the strike will continue a serious dis
market may to a certain extent be a
reflection of this attitude.
The aggregate of new offerings
during the week was small, as might
be expected in line with a small de-
mand always prevalent at this season
of the year. The issues which were
brought out, however, were reported
to he enthusiastically received. The
market for municipals was quiet. with
a fair demand. especially for shorter
maturities. Public utilities showed a
fair volume, especially among hydro
electric and other properties whose
position, if anything. will be improved
by a continuance Of the strike dis
turbances.
Apparently a great many investors
not thoroughly familiar with the sig
nificance Of listing. attach more i'm
portance to this feature of bond invest
ments than conditions warrant. While
It is true as a general statement that
listed bonds are more marketable than
unlisted. it must be kept in mind also
that listing of itself is no guarantee
of marketability. There are hundreds
Of issues listed on the New York ex-
change which have absolutely no mar
ket through that source. and hundreds
of other issues which have never been
listed that enjoy a relatively active
market. Oftentimes through the use
Of proper discretion the investor can
improve his income substantially by
selecting unlisted instead of listed Sc
curities-and this without any serious
sacrifice of marketability. Those who
have an unreasoned prejudice against
unlisted investments would do well to
study the fundamental situation. The
advice of an experienced bond house is
more valuable in determining the rela-
tive merits of investments of different
types than any rule-of-thumb method
which investors might employ.