Baraboo weekly news. [volume] (Baraboo, Wis.) 1912-197?, 1925-06-18
Business Outlook
Is Discussed


r. Alger Dake company in Milwau-
kee recently discussed business out
look of Wisconsin in an article
published in the Wisconsin News.
Mr.. Dake is a son of Mr.. and Mrs.
r. E. Dake of Baraboo.
The article said in part:
Should you ask any Wisconsin
investment dealer. 'how is busi-'
ness he is pretty sure to reply,
fine.
Despite the tremendous amount
of new financing brought our during
the first quarter of 1925, tho retail
demand for investment securities
continue undated. This is not a
local creation, but is in evidence
throughout the entire country
There is real shortage of high
grade bonds yielding a reasonable
return, if the investor is willing to
accept a yield that is lower than
is consistent with general business
conditions he can find plenty of Of
ferings, but if he desires a more
equitable return his selection is
limited.
During the past few years we
have become nation of investors.
Patriotic buying of Liberty bonds,
has educated the public in the ad-
vantages of systematic investing.
Competition among originating
bond houses has beeL strong and
this active bidding for new issues
has resulted in several large flota-
tons being brought out on a very
low yield basis. In fact, some CT
them were distributed at prices
which were altogether too high and
sharp decline from the offered
prices Immediately followed the
withdrawal of syndicate support.
Nation of Spenders
The American people hav3 often
been called a nation of spenders,
but the volume of securities alb
sorbed, also the totals Of individual
bank deposits, would tend to prove
the opposite.
Succeeding the spending orgy of
The immediate postwar period, we
entered upon an era of individual
thrift. Statistics are not avili;Si BILE
but | will venture to conjecture
that the majority of citizens at
least in Wisconsin are owners of
investment securities.
This is the day of the small in
vestors. Formerly, the bond house
entered only to the wealthy inves-
| tor an to institutions such as insur-
ance companies and savings banks
who bought large blocks of bonds.
Bonds in denominations Of 800
were usually non-existent. This
situation has changed, however,
and the aggressive investment in
stitution becomes the small invest
or as usuable asset. Were it not
for the 100 of thousands of small
| investors, in any large piece of
financing would a you be success
fully f1oated.
The small investor has become
acquainted with the advantages of
investing, but heN has not yet fully
learned the lesson that q careful
investigation of offerings and the
exercise of discrimination is ne
cessary to success. Too often he
acts blindly and CANDLES with his
savings under the impression that
he is making safe investment.
During the first quarter of this
year, the staggering total of over
169, 100000 of foreign securities
u.
States. An enormous block of
these securities have found their
way into the hands of small inves-
/ tors. Now many of these issues
are probably entitled to a sound
investment rating but many others
are not.
In the opinion of the writer, the
small investor has no business in
vesting in foreign securities. The
risk is too great and he can not
afford to take such chances simply
| for the sake of per cent or better
There are prospects that large
amount of additional foreign finan-
cling will be brought out during the
next few months Several for
eign governments, municipalities and
corporations would like to obtain
American gold in return for their
promises to repay at future date.
They are usually willing to allow
a substantial commission on such
financing and no doubt will contin-
ue to find assistance in floating
/ their securities.
Healthy Outlook
The outlook for the general Sc
curity market during the summer
months is healthy. There is still
a large amount of available capt.