Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-07
STOCK YIELDS NOW
AT HIGH FOR YEAR
Present Returns Virtually
Same as Those at Bottom
of 1921 Bear Market.
BY EDWARD G. STONE.

Average yields OF all dividend-paying
stocks listed on the New York exchange
on September 80 were not far from
those recorded in the panic of last No
vember, according to Moody's Investors
Service, which also finds that present
yields virtually correspond to those seen
at the bottom of the 1921 bear market.
AS result of the sharp drop in stock
prices in September the computed aver
age yield for 384 stocks increased from
TIA per cent to 7.91 per cent during
the month. This recent average OF 7.9l
is intermediate between the June 80
average of 768> and the November Is
average of sos.
Even more significant is the COM
parison with August "a, 1921, which
marked the lowest point of the 1920-21
bear market. At that time SO common
stocks yielded s.92 per cent. Although
this is, In fact, much higher than the
7.el per cent of September 80, allow
ance must be made for the difference
In credit conditions.
Bonds of all grades then commanded
q substantially higher return than at
present, and If due weight is given the
lower current return on senior securi-
ties the recent common stock yield is
relatively as high as the 1921 bottom
yield. possibly indicating that the stock
market has again found itself on
level which, in the past, has invited
Investment buying. These averages are
of particular interest, since they cover
the entire market and not merely Sc
lected group Of stocks" the review says.
Commodity Price Index OF.
The wholesale price index of the Ma
tional Fertilizer Association for the
week ended october 4 declined only
three fractional points, as compared
with the decline Of nine fractional
points last week and decline OF eight
fractional points two weeks ago: Inc
record low for the present year. A year
ago the index number was 97.1.
OF the IA groups constituting the IN
dex. two advanced, six declined and the
remaining six showed no change.
Butter, hams, dried beans, wheat,
hogs, copper, melting steel, silk, gasoline,
hides, rubber and cottonseed meal were
among the SO commodities that showed
price declines. Advances were shown oy
26 commodities including cotton. cotton
warn, corn, oats, eggs, flour, coffee, po-
tatoes. lumber, finished steel and Ter
tilizer materials.
American Stores Sales.
American Stores Co. reports sales as
4 weeks ending e-27-30. $40, 3o1 ,482
4 weeks ending 9-28-29. $50. 1o,37e,7e0
Decrease .......:$ 7S,3o8
40 weeks ending 9-27-30. .$l04, 701 ,956
80 weeks ending 9-28-29. l04,66l,76l
Today's Trading on Exchange.
Business was quite active on the
Washington Stock Exchange today.
Twenty-seven shares of Capital Trac-
ton sold at SIS, new low on the pres
ent move.
preferred came out at 11lA while the
5I1 per cent issue changed hands at
lO83l. Washington Railway 81 Electric
preferred sold at SO.
Federal National Bank
stock sold at 2721lz and 272. Twenty
shares of Liberty National Bank STOCK
also appeared on the board, selling at
200.
Federal-American Co. common came
out at 3012, and 80 shares of Mergen-
thaler Linotype moved at 9414. Real
Estate Mortgage g. Investment preferred
moved to the extent Of 200 shares at
61a.
Traction SIS, Washington Gas IS, and
Potomac Electric Power IS, prices being
little changed from recent sales.
Other Financial Notes.
James M. Stokes, jr., viii address the
District of Columbia Life Underwriters
Association at the October meeting
Thursday noon at the Hay-Adams
House Mr.. Stokes Is connected with
the Mutual Benefit Life Insurance Co.,
Philadelphia, and will talk on "Procur-
ing My Business"
The Treasury Department has in
vited bids on 500, 000, 900 Of Treasury
bills; $50, ZOO 900 dated october Is TO
mature December Is, and $50 ,000, 900
dated october 16 to mature December
IT
woolworth September sales gain, a
Of per cent over year ago, to $22,352,-
534; nine months, decrease Al per cent
The Interstate Commerce Commits
sion has authorized the Western Pa
cific Railroad Co. to issue $5,0O0,000
first mortgage per cent bonds and TO
sell them to highest bidder at not less
than 97la and accrued interest. Pro-
ceeds will be used to construct and ac-
Quire new mileage.
A pamphlet issued by the Chicago
Stock Exchange says the the volume
OF trading in the first nine months Of
1880 exceeded that in any similar period
In the history of the exchange.
Richard NJ. Boxer has associated with
the Washington office of j. g. w. Selig-
man e. Co, with headquarters at
Hampton, Va. Mr.. Booker was for
merry with Robert Garrett q Sons OF
Baltimore
David Fender Grocery Co. reports
gross sales for the four weeks ended
September 81 Of $1,191 1853, compared
to $l,202,717 for the corresponding
period Of 1929, a decrease of 09 per
cent. Gross sales for the nine months
ended September 81 were Sl1 ,507, 66l,
compared TO $ll ,307 ,785, an increase Of
II per cent.
FEWER B0NDS CALLED