Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-31
ADDITIONAL sTOcKs-BONDs MARKETS

This means that sooner or later we
shall work toward better prosperity,
1t is true that industrial stocks are
much higher than a year ago and are
certainly not the bargains that they
were. However, as ! have already
stated, certain lines of industry are
just getting ready to go forward. The
industrial market will be 'spotty' but
there are a great many issues that
should do better in the coming year
The rail group is, relatively, not SO
far advanced as the industrials. l dc
not believe rails should be bought il.
discriminatory, but the rail average
will follow up the general market. j
am much more attracted to the long
haul roads than to the shorter lines.
The motor truck is a feeder for the
former but a competitor of the lat.
ter. Copper stocks have really no,
started yet, but the statistical position
been for a long time. Coppers, GER
%tainly, are selling at bargain levels.
Money Conditions
Money conditions should continue
good. There is no question that the
banks are in a strong position. The
federal reserve banks to day have re-
serves equal to about rs per cent of
their note and deposit liabilities. The
reserve requirements lis between 81
per cent and 40 per cent It is true,
that when foreign countries begin to
get on their feet, it will be necessary
to send much of this gold back. For
the present, however. this gold repre-
sents the basis ON which Il consider
able expansion of credit can be built.
1t guarantees to us a relatively easy
money rate, until heavy gold exports
are resumed. During the coming year,
borrowers need have little fear of q
lack of funds for all legitimate pur-
poses, and this also applies to long
term money, that is, capital for per-
manent investment. Mortgage rates
during 1923 should work lower. To-
day, the average rate of real estate
mortgages throughout the United
States is between 6 per cent and Z
per cent. The time is not far away
when this average will stand between
3 per cent and 6 per cent.
"Of course. the elise OF the money
market is distinctly favorable to long
time bonds. There is a point in the
business cycle when industry becomes
SO active that money is absorbed by
trade. When this occurs bonds are
sold and developed a downward ten
dency. This point in the cycle has not
yet appeared. Moreover. history
shows that following the Civil war
bond prices, barring temporary fluctu-
atoms rose for n long period of years,
the advance eliminating about 1900.
From this point, a descent was grad
ually made to a low point at the end
of the European war. Since this low
point. history is repeating itself, bonds
having reached a middle ground, but
still far below the $50 or 4 per cent
basis of the 1900 period. All these
factors suggest that well selected
bonds, both municipal and corpora
ton, are a distinct purchase.
"Bonds and money" concluded Mr..
Babson, "are certainly sound factors
in the situation. As for business as a
whole, there is no doubt that 1t will
average better this coming year than
it did in 1922. This does not mean
that there will be any boom, but that
there will be plenty of money-making
opportunities for those who know
fundamental conditions"
General business according to the
index Of the Babsonchart stands at
only 2 per cent below normal, the
same as q week ago.