Evening star., 1927-09-28
"STYLES" IN BONDS
ATTRACT PUBLIC
Plenty of Money Is Available
for Investment, but Buyers
Have FanCieS.

Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 2S.-Rein-
vestment demand. which will make it.
self felt from now until the interest
and principal paid October ! Is again
bound up in securities. will be closely
studied by bankers and ffnanciers to
determine the trend of investment
styles"
Investment bankers all over the
country have determined that styles
in stocks and bonds play a most i'm
portant part in the volume Of secur-
tiles sold. This attitude has been
made apparent by the reports wired
by delegates to the Investment Bank
ers' Association convention at Seattle
10 their home offices today.
The delegates, after extended con-
ferences, report almost unanimously
that there is plenty Of money for in
vestment but that the public will buy
only the kind of investment securities
it fancies at the time. Efforts to tell
the public what it ought to want
instead of offering it what it demands,
they say, have proved costly in bank
ing as in industry and merchandising.
Much Free Capital.
81 have never seen the time when
there was 80 much free capital await
ing investment as there is right now" ="
wires Edgar F'riedlander, Cincinnati
investment banker THE largest in
dustries in the Middle West, at least
are in a very prosperous condition,
with no unemployment problem in
evidence and. wages at a high level.
fty1 Ii,
today, however. is to find just the
type of securities people want. They
puy readily the kind of securities they
are seeking, but in recent years there
has been considerable change in secur.
Ey demands.
Ten years ago the main market
was for municipal issues. Everybody
wanted municipals. That tendency
has changed and the subsequent ten
hencies have continued to change an
hually ever since 1918. Today inves-
tors are going in for other kinds OF
stocks and bonds, hoping for an en-
hancement of value in securities OF
those businesses which have bene-
fitted most from the general run of
prosperity.
Il have never known conditions to
be more sound than now. Banks are
In very good condition. The nation
nj field of investment seekers has
broadened wonderfully, especially
among the wage earners, who learned
to save during the Liberty bond period
of invest tment and who have kept it
up. There has been very large in
crease in the type of small investors,
whose limit in purchases is about 5000
At n time"
During the latter part of the past
nf q
big New York Trust Co, investors
became very receptive. In the early
Summer there was a slowing up in
investment banking. This temporary
stagnancy was due to group of
causes, one of the principal of which
twas that investment houses had too
many issues to float on heavy mar
ket, Now, however, the surplus issues
have been cleaned up and the public
again is in a receptive mood. New
foreign issues carrying from 6 to 712
per cent interest are much sought
after.
Bond Rise Is Predicted
There seems no indication Of a
change in money rates that would af-
feet the bond business and there is
every reason to believe that bond
prices will continue to advance unless
the volume of new issues again be-
tomes too great to be handled in
short space of time.
This country can absorb a liberal
amount of securities, but there must
be a limit, and experience tends to
show that the sale of Sl50,000,000 in
new issues weekly is about the high
water mark. Another reason for the
Summer slowing up of investment Sc
rlIrity demand was too much cOmOeti-
ton on the part of bond houses. There
were 35 houses bidding for one Euro
bean issue. This competition forced
prices up, perhaps, in many instances
beyond where they really belonged.
The successful bidders had to take a
much smaller margin of profit and the
final analysis showed prices had been
forced up to a point where they were
hot attractive to the nuhlicn