Evening star., 1926-10-18
MEN AND MONEY
~ Ns ~ AJ~
(Copyright. 1920

| America during the present cycle
Of prosperity is fast accumulating cap
ital and adding to the surplus or ma
tional wealth. =
Good times, moreover, are more
widely diffused among the various
economic classes and the dlnerent
geographical sections of the country
| than was the case in previous eras
of prosperity.
| These observations are based on
conversations with leading investment
bankers from all parts of the country.
In pre-war times, when investment IN
bonds was limited to 100000 lndl-
yiduals and institutions. the invest
ment market was virtually limited TO
New York and New England. NOW
| the Middle West, the South and the
Pacific Coast participate in all sig.
nificant new security creations, ana
the tastes and preferences OF lnVes-
| tors west of the Eastern seaboaru are
receiving increasing consideration IN
the determination of new lnVeStnehl
| patterns.
A, c. Allyn of Chicago who heads
an investment house, which bears MS
name. described the marked changes
in the investment habits of the MID
die West.
Now iii SdVIuE CtdSc'
"Ten years ago." Mr.. Allyn told
me. 1--WE were still in the making
stage: now we are in the saving stage
Great fortunes have been accumulat-
ed in the Middle West. Hence, there
has been a tremendous expansion of
the investment market around chi
cago. For the first time we are de-
veloping a leisure class. This sltua
ton will not check our growth, Tor
we still have younger men VINO are
on the make. We are developing a
discriminating investment group, yel
our market still prefers higher yield
ing securities. The demand for new
issues is growing in our SECTION much
more rapidly than the population. IN
til comparatively recently all surplus
money in this new district went INTO
the enterprises of individual business
men. The taste for higher yield
is in part the effect Of competition OF
farm mortgages with bonds. More
over, we have no savings banks, Whlch
are in the East regular buyers or the
high-grade securities Of low yield.
Cincinnati investors, however, are
more conservative than those In Cni-
cago. according to Harry Edward
We'll of the We'll, Roth & irving
Co, Cincinnati.
"At least Is per cent of all bono
buying in our CITY," Mr.. Wen salo'
in response to my questioning, coh-
sists Of purchases Of munlclpal op-
legations. The second-grade mu-
nicipals. with a somewhat higher
Weld than the best municipals, are
especially popular. The influence or
the conservative German strain IN
our population accounts for the dls-
position of our investors to pace
safety considerations before all
others, However. the desire for a
better return, now that interest
rates have declined, is gradually IN
creasing the proportion OF private
corporate securities sold in our CITY,
where there is a particularly good
market for issues of local companies.
Cincinnatis Business Good.
business is good in Cincinnati,
although merchants and manutac-
turers complain that collections are
slow. The installment plan, by
which consumers mortgage their fu-
ture earning power, is frequently
mentioned as a factor in the slowing
up of payments.
"Since the first of the year Gin
cinnati has been helped by the IN
PRODUCTION of the city manager plan
Of government"
Another city Of markedly conserva-
tive financial tastes is Baltimore.
Speaking of conditions in his city,
Simon J. Block, of the investment
house of Nelson Cook & CO.,
remarked: Baltimore is considered
conservative, yet it is not lacking In
boldness when venturesomeness is
necessary. 1 find that men with lots
of money are conservatives; those
without much are willing to take
chances because they haven't much
to lose.
"Since the war Baltimore has be-
come more cosmopolitan. 1t is less
dependent than before on the trade
Of the South, although the South
is still the largest customer of the
wholesalers and manufacturers of
the city. Baltimore has been extend