The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-04-16
SECURITIES ON
Real estate
ARE POPULAR
Volume of New FIotationS
for First Quarter of
Year Sets Record.

The demand for real estate secu1i-
ties has been phenomenal during the
first quarter of 1926 and the volume
of new hotations in the United
States for this period was by far
the largest in history, according to
statistics made public today by the
holding construction research bu-
reau Of G.. l.. Miller & Co, nationally
known investment house specializing
in building construction financing
The total amount of new capital
real estate mortgage bond issues
underwritten by leading investment
houses during January, FEBRUARY
and March, it was estimated, aggre-
gated approximately Sl40,349,ooo'
This represents a gain of about li.b
per cent over the same period last
year, and Is nearly three times
larger than the total amount OF
realty issues for the entire year Of
1921
ANY serious falling Oft In the
amount of new realty issues during
the next few months appears un-
likely, it was stated, as the demand
for construction financing continues
to be heavy and the public demand
for high grade bonds is increasing.
Whether the record breaking total
Of 500 600. 900 reached in 1925 will
be exceeded depends upon the build
ing demand during the last half of
this year.
Bond Investments Increase
"There is every indication that
notable expansion in the volume of
bond Investments Is in prospect for
the next ten or twelve months, or
perhaps longer" said the statement.
There already ia a noticeable ten
dency to sell stocks and divert to
conservative investment channels
much money which heretofore has
been used principally in specula-
ton. Investments in hlSh-grade
bonds. especially such as Govern
ment, municipal and Al issues
among the rails and industrlals will
undoubtedly greatly increase, and
a similar enlarged demand for first
mortgage real estate bonds appears
TO be an unacceptable conclusion
Figures now at hand show that
the leading investment houses of the
country during January and Feb
Y11ary underworld real estate mort
gage bond issues totaling $96.349, 500.
as compared with ST ,185,500 in the
same period in 1925.
It Is estimated that new flotations
in March will exceed $50 900 900,
as compared with S53,929,200 in
March. 1925 These figures do not
include the scores Of smaller local
houses spread throughout the coun-
try.
While the public has been buy
ing realty securities at the rate of
about 81, 100000 a day, the fiotation
Of other types Of securities has been
on the decline In January and Feb
ruary the aggregated amount OF
public utility bonds issued totaled
1926, 500, 900, as compared with $685.
149. 500 In the same period In 1925.
Railroad securities dropped from
sto4.457 900 in 1925 for this period
TO S54,65S 900, q decline of 81 per
cent.
The enormous growth in real es'
tate financing is attributed by G. L.
Miller, president of G. l., Miller &
Co, to be largely due to the unprec-
edented development of the building
industry.
Plenty Of Building Capital
Miller said that the supply OF
capital now available for building
construction financing was probably
greater than at any other time in
the history OF real estate develop
ment.
IAN important element has been
the placing upon the market Of
bonds that are Internationally
guaranteed as to payment Of
principal and interest, whereby the
investor is doubly assured of the
safety Of his investment, said
Miller.
1.-THE State Savings Banks Asso-
citation of New York has Just made
public figures showing that on Jan.
1, 1925, the total invested in mort
gage loans by the savings banks OF
~ n u n ssz'