The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1922-08-17
BOND MARKET OUT
LOOK IS IMPROVED
By Robert E. Smith, President Lumber
mems Trust Company Bank, Portland,
Oregon.

By Robert E. Smith, President Lumber
mems Trust Company Bank, Portland,
Oregon.
As the promoter of an outdoor fes-
tivity keeps an anxious eye on the bar
ometer, so the investor in bonds watches
the Liberty bond market and bases his
estimates and representations on the
fluctuations of those issues of which it
is composed. Just now the possibility
of another rise in bonds generally is in
dicated by the rising tendency of Lib
ertys and the possibility is further
bw the continuing cheap
ness and abundance of capital. 1t may
be that their upward swing will gain
so much momentum by the early fall
that it will bear municipals and high
grade corporations along, although re-
turn to the 1917 high level, or even an
approximation to it, is not considered
even a remote possibility. Indices COM
piled by various financial authorities in
dicate that bond prices in general are
still some 6.41 points under the 1917
level.
One result of the continued ease of
money rates is the exceptionally large
call for payment of bond issues. Many
corporations throughout the United
States are taking advantage of the pre-
vailing comparative low interest rates to
anticipate the maturities of their out
standing securities, calling them and
putting out new issues at rates which
are considerably lower than the former
rates. Bond issues called for payment
in 1922 in entirety before maturity have
| established a new high record. Thus far
this year the total has almost reached
400 millions, as compared with total
of only about 10 millions in the cores
ponding period of last year, Whether
this method of procedure is the part Of
wisdom or the reverse depends of course
upon the future price of capital. If in
terest rates continue to decline-and Mr..
Roger Babson and Mr.. John Moody
agree that it is extremely likely that
they will do so for some years to come
the corporations which have issued their
new securities for long terms and with
| the provision that they are callable only
at high premiums will have cause for
regret. In the present circumstances and
| by comparison with former rates, cur
rent interest rates appear low; but if
Mr.. Babson and Mr.. Moody prove true
profits, it is not inconceivable that the
| lapse of time may witness such further
reductions that present rates may seem
high.
Business throughout the country is
| not only suffering from the usual sum-
mer dullness to be expected at this time
of year, but appears less cheerful also
\ because of the continuing strikes. The
rail strike menaces the movement Of
crops and the coal strike hampers the
operation and production of most of the
industries. Car loadings are, however,
said to be on the mend in spite of the
| railroad embarrassment, and the iron
and steel industries are still functioning
with great prosperity, although the la
| Dor situation has affected them adverse
ly. Locally the bright particular star in
our financial armament, the lumber in
dustry, is scintillating with unwonted
brilliancy, production being above nor
NAL. Local crops, however, are suffer
ing from the unusually dry season and
will fall far short of expectations.
Throughout the country at large, the
crop yield promises well, and much will
hinge on the ability of the railroads to
move them.
The elasticity of business which Hen
ry Thoreau eighty years ago likened to
that of rubber ball is still fortunately
one of its vital characteristics and will
doubtless enable it to bound over the
obstacles in its path, and though cast
down temporarily to come up with un-
impaired resiliency.