Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-15
MONEY OF WORKERS
GOING into BONDS
High Wages Making Capital
lists of Laboring Class.
Buying Lions Share.
BY j. G. ROYLE.
Special Dispatch to The Star.


NEW YORK, February 15.-Capi-
tai and labor have just about accom-
plshed merger. Wages in America
now are the highest in the history of
the world. Workers have been able
to save such a percentage of their
total incomes that they have become
capitalists and the volume of worker
money now going into investment
channels is enormous, so large.ln fact,
that it exceeds that which is passing
into the same arteries of business
from the So called capitalistlc class.
The boom in the Investment mar
ket has reached a point Where rec
ords are being broken almost daily.
Financing in the last month was the
greatest in the history OF this coun
try, which means in the world, ana
if the same pace is maintained until
the end of February, even these UNI
precedented figures will be ecllpsed.
Many New Issues.
These facts are amply substan-
tiated by a review of the present IN
vestment situation and compilation
of investment data by Lawrence >.
Stern & Co. of Chicago. Ac.
cording to their figures, offerings OF
new bonds and notes to the pupllc III
January aggregated $782,811 $3.50. Thls
month the new financing absorbed
has apDroximated $200,000,00O a
week. The January figures showed
a gain of about $195, 100000, as COM
pared with January, 1926, an increase
of about 33ls per cent, Whlle the
gain over December, 1926, amounted
to AZ, per cent e.
The significance of these figures
lies in the fact that this tremendous
volume of money has gone into com
merce, industry and trade. Iurhlsh
ing additional income to workers and
INVESTORS, which in turn is being
turned back into productive channels.
The trend toward advancement In the
use of electric power has made itself
Mainly manifest Public utility financ-
ing continued to lead all other forms
of investment. In January over S209,-
600 900 of new capital went into the
Golfers of utility concerns.
Tax-Exempt Securities.
The income from the really large
fortunes of the United States seems to
have been directed largely into those
securities which are taX-eXempt. The
total for such investments in new
securities in January amounted to
s1S7,711 800, according to the Stern
& Co. figures.
Industrial stocks and bonds absorbed
S1SO,115 900 and foreign issues ac-
counted for 1921 .093, 500. Real estate
offerings dropped sharply both on ac-
count of the time oil year and the
fact that housing needs in some local
tiles have been fully met. These In
vestments during the last month ac-
counted for $75.710. 500. of which the
larger part went for construction of
Office buildings and industrial and
municipal plants. Railroad financing,
with half dozen me- ger schemes
awaiting contamination and approval
by the Interstate Commerce Commits
sion, dropped to SS,696,000.
The average yield on the securities
reflects the huge volume of money
available. During January 1t aver
aged sos per cent as against 6.17 per
cent a year ago. The foreign issues
still lead in the amount returned with
7.01 per cent but even they have
dropped from 1877 per cent a year ago.
Next come the real estate obligations
with 622 per cent, industrials with
6.13 per cent. utilities with 5.57 per
cent and railroads with SIS per cent.
The grand average Is 6.06 per cent, a