Evening star., 1926-10-12
STABLEBUSINESS
BANKERS OUTLOOK
Men Attending Quebec Con-
vention Agree on Future
Conditions. ,.
BY j. C. ROYLE.

QUEBEC. October Instability Of
business, industrial and investment
conditions is the one thing on which
most of the delegates to the conven-
tion Of the Investment BANKERS AS
sOciation of America agree. They 90
not look on the present situation as
representing boom conditions, nor 40
they expect an advance which will
approximate boom. But they see
no signs Of undue imitation and eX-
press the utmost confidence that pros
perity will continue not only through
out 1925 but far into the new year.
There is every evidence that the
domestic financing alone for the year
1925 will exceed $7,735. .174,723. This
Is entirely outside the tremendous
volume Of foreign bonds which have
been offered American investors,
which before the year ends is likely
to bring the total Of bonds placed on
the American market above $1,000
100000.
Will Take 1T Readily.
The American public not only will
absorb this amount readily, accord
ing to the bankers here, but will nave
funds for investment which will keep
the volume of new securities flowing
dl luIl llOc well 1IllO NAlC Va
1927.
This conclusion is based on un-
censored statements. The bankers
gathered here for this convention are
optimists in that they have or expect
to have something to sell and have no
wish to discourage the buyer, but
they are level-headed men and un-
willing to fool themselves. The con-
clusions above are based on what
they have said to each other, rather
than what each sectional committee
has put into the report discussed in
executive session Monday night and
subject to the censorship of the board
of governors.
Trend to Be Higher.
The general trend Of high-grade
bond prices in the near future will be
higher, according to Ray Morris, pres
ident of the Investment Bankers.
This opinion agrees with that of some
of the most influential financiers in
America. They base their view on
the fact that money made In industrial
enterprises, both by employers and
employees is just beginning to find It's
way into the investment markets.
There has been, they say. a tre-
mendous increase in capital wealth
anu uClI VI tItlo ILlOlACy tltlo icI bSSAi
needed in industrial expansion, since
expansion in the war years exceeded
demand in the postwar period.
Wealth, therefore, is pouring into in
Vestment channels and they expect
the current of capital to continue well
into 1927 at least.
The one thing the investment bank
erS are anxious to avoid is any check
to this current. In consequence there
is every probability that the agitation
started by Prof. William z. Ripley OF
Harvard for the furnishing of addi
tional information as to the affairs OF
corporations to holders of securities
will be heartily indorsed, although the
bankers surely will differ with Mr.
Ripley as to placing the enforcement
of publicity in the hands of Federal
departments.
Will Simplify Language.
It is also sure that the cumbersome
verbiage used in describing security
issues to investors will come in for
reprobation, and steps will be suggest
ed for simplifying the language in
which bond issues are outlined. But
bankers and lawyers say 1t will take
10 years to work out a wording which
will be understandable to all and yet
cover legal requirements.
The manner in which Canadian and
American financial and investment in
terests are interlocked and oppor-
tunitieS for investment in Canada
were fully outlined today at the first
formal session of the convention by
Narcisse Perodeau. lieutenant gov
ernor of Quebec; John A. Fraser of
Toronto. j. H. Gundy Of Toronto and
L. A. Teschereau, Premier Of Quebec.