Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-16
INVESTING POPULAR
IN HOT WEATHER
Tendency Toward Greater
Activity in Market in
Summer Shown.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK, June 15-A tendency
toward greater activity in the invest
ment market during the Summer
months Is shown in statistical survey
OF new financing for the past six years,
made by Stone, Webster e. Blodget.
During the third quarter of 1928
ther saw Sits, 100000 in new public
curities issued, but in 1927 this quar-
ter saw s1,779,s9e, 999 in new public
offerings; and even last year, when the
presidential campaign and other spe-
cial conditions affected the securities
markets, the offerings for the third
quarter were 1905, 100000. With the
exception of 1928. the third quarter Of
each year has seen the value of new
security offerings increased over the
preceding year.
In the past six years the total of
new publicly issued securities has been
valued at $45, 1903, 100000 of which
So, l00, 000, 900 were issued during the
months of July, August and September.
During the SiX-year period studied, the
total values of new securities issued in
each. quarter were: April, May and
June, $12, s35, 100000; October, Novem-
Der and December, S12, 900. 900;
january, February and March, $l2, $685.
10000; July, August and September,
So, 100, 000, 900.
In number of issues brought out dur
ing the six-year period, the survey dis
closes that the Summer quarter is Sec
ond only to the Spring quarter, and is
ahead of both the Winter and late Fall
quarters. OF the total of $1,000 new
issues in the 1e23-1928 period, nearly
$4,000 appeared during the Summer
quarter. The Summer offerings, which
numbered / ,450 issues In 1928, increased
- fAN fn Cam nNte n
1928.
Stock Market Comparisons.
That the normal Summer demand
for outstanding securities is at COM
paratively higher level than the volume
study of reports of the New York
Stock Exchange, which are readily
available for the three years through
1927. Summer sales Of bonds on the
Stock Exchange, Stone g. Webster and
Blcdget find, held up at 70 per cent
of the average volume in the other
quarters. Summer sales of stocks, total
ing 361 100000 shares in the three
years, were only 8 per cent below the
average for each of the other three
quarters. Those ratios Of Summer de-
per cent for bonds and 81 per cent
for stocks-compare with 70 per cent
ratio of new offerings represented by
the 81 ,614,0o0,000 of securities brought
out in the same three years.
Had prices of securities slumped in
those Summer months, that might ex-
plain O reluctance to bring out new
issues. But that Is not the case. Bond
prices on the Stock Exchange in the
three Summers averaged 97.30, almost
identical with the 97.33 average for the
prncpdinO and following niiartarS 0f the
same years. The Summer stock prices
averaged 1925, or slightly higher than
the 1l.80 average for the second and
fourth quarters.
Summer Investment Methods.
Summer or Winter, the man who has
large wealth, and frequently receive;
funds through dividends, interest and
salaries, Is reluctant to allow his funds
to lie idle. He either keeps in touch
with his own investing or appoints
some one else to do 1t for him. In the
Summer the wisely placed advertise.
ment, the properly directed call or let
ter from the bond salesman is likely
to team up with the investors con-
tinuing need for securities.
In the lower income group, the mar
with less business authority, less means
less leisure, usually is away from hi;
customary address but two or three
week, and during the balance of the
Summer is Just as accessible as a.
any other time of the year. For the
vacation period, in fact, when he wants
TO be freed from worry over speculative
stocks, he Is likely to be more thar
usually receptive to suggestions about
sound bonds and preferred stocks which
| make up the greater part of the in.
Vestment bankers offerings"