The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1927-12-27
GOOD BUSINESS
SEEN IN 20
BY RICHARD HATTON

A review or business developments
in the United States during the
year shows that the generally pros.
porous conditions of the past few
years have continued and that the
underlying economic factors remain
sound. justifying the expectation of
continued good business in 1928.
states the current issue of the
Guaranty Survey, issued today by
the Guaranty Trust Company of
New York.
while it would be rash to pre-
dict that trade levels will equal
or surpass the peak figures recorded
in 1926, a state of sound prosperity
does not consist In the establish.
ment of a continuous series of new
high records" the survey continues.
"In fact, it is to be hoped that no
such development will take place
since unduly swift expansion in
evitably entails reaction later on
The best interests of the business
community are served by a slower
and more stable rate Of progress. :"
Security Offerings
The investment market during
1927 was featured by continuance
of the great flow OF new security
offerings at an unprecedented rate;
record high prices of reasoned is
sues, and a steady decline in the
yield on investments.
In no peace-time year has so
great an amount of new securities
been offered to investors. say Law.
renee Stern and Company. Chicago
Investment bankers. All classes eX-
cept real estate participated in
this increase. Approximately ST.
OOO, 900. 900 was placed in new pub
lie utility loans during the last
IL months. and only a little less
than that amount was loaned to
industrial enterprises. This COM
pares with borrowings in 1926 by
public utilities of less than $1,000.
900 900, and by industrials OF slightly
more than 81 zoo. 100000.
Foreign loans floated in this
country in 1927 totaled about ST..
333. O0O,0 and railroads received
almost $750.000.000 of investors
money. New tax exempt securI.
ties in 1927 showed no large in
crease over 1925. but were offered
to an amount more than $780,
900. 900.
Real estate bonds offered to
the public during 1927 alone showed
a decline. This might have been
expected in light of the declining
amount Of new building and the
additional fact that many invest.
ment institutions. such as banks,
building and loan associations and
life insurance companies, are lend
ing tremendous sums on real estate
projects, not included in the total
offered to the public.
Instalment Growth
According to this weeks United
Business Report, the instalment
plan as applied to both spending and
saving is steadily increasing.
The total volume of instalment
buying in this country during
1927 will approximate $4,000 900, 900,
which represents IL per cent of the
total purchases made throughout
the country.
The results of recent exhaustive
studies do not indicate that such a
situation offers any cause for
alarm. On the contrary there is
definite evidence that instalment
selling has found a permanent place
in our economic order and that 1t
will continue to act as a strong
force in American industrial prog
ress.
One of the most optimistic phases
accompanying the development OF
the ''instalment habit" is its appli-
cation to saving as well as spend
ing. During the current month, the
Christmas savings clubs and similar
instalment savings schemes have
paid out to their members a total
of over 100000, 900. OF this APP
proximately 80 per cent will imme-
diately go into retail trade, 30 per
cent into savings accounts, 13 per
cent into instalment purchases, 5
per cent each into taxes and inter
est payments, 4h per cent into in
surance, per cent into education,
and IA per cent into charities.
New Issue Offered
J. A. w. Iglehart and Company, |
who have offices in this city, will
offer tomorrow new issue of Sc
curity Bond and Mortgage Com.
pany first mortgage 5h per cent
collateral trust gold bonds, to be
known as series J. and to be dated
To