Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-08
SECURITIES AWAIT
TURN IN BUSINESS
Bond Dealers Disappointed
With Recent Demand for
Senior Issues.
speelal plspateh to The star.

Special Dispatch to The Star.
CHICAGO, November s.--That any
definite Improvement in the securities
markets will have to await an upturn
in general business conditions is the
conclusion reached In the monthly
investment review Of Lawrence Stern
g. Co.
Previous to October" stated the re-
view, "the majority Of the countrys
bond dealers looked forward to a strong
bond market during the Autumn
months. These expectations were dis
appointed, and declines in both the
stock and bond markets during the
past month have apparently resulted
In greater degree Of pessimism among
investment dealers than has been evil
denced during the course OF the pres
ent depression"
There is one bright spot in the secu-
rites field today, according to the re-
view This Is a good demand for
fixed trust securities, which have en-.
joyed an excellent business in the face
of the declining prices for their un-
DERIVING shares.
New Security Offerings.
1.-THE offering of two or three UNI
usually large issues during October"
said the review, brings the volume OF
the months offerings of new securities
to fetal slightly larger than that Of
Setember. The combined offerings Of
the Notwithstanding both stocks and
bonds-total $500 ,903, 497. compared 70
$464, 1858. 259 in September.
The increase in bond offerings was
principally in the foreign, municipal.
and industrial ications-pub
utilities having registered q sharp de-
cline.
THE outstanding features among the
months offerings were the $100,000,000
Dominion Of Canada Is and the $780,
000, 900 New York City Is, which resulted
In q sizable increase in the foreign and
municipal classincations. Except FOL
these two issues the months total would
! have registered substantial decline
There was an entire absence of railroad
issues for the first time since August
1923; and the only issues appearing IN
the foreign column represent Canada
financing.
I'm the stock field. the only clossifica-
ton in which there was q substantial
volume was that of industrials, which
registered q considerable increase oven
September. Although no definite figures
on the volume of fixed trust securities
are obtainable, 1t appears certain thss b
such figures would considerably augmerH
the October total, as this type continu
to enjoy high degree Of popularity"
Summary Of National Situation.
Reports from leading financial ms
buttons in the IL Federal Reserve D.
tricts as to conditions In the securiti
markets were summarized In the reviC
as follows:
Sixty-seven per cent of the Nation
bond dealers report retail distribute.
of bonds below normal, the remainde.
reporting normal distribution, with M
reports this month of demand abov
normal. Stock business Is unanimous
reported as below normal.
Investors favor bonds rather tina.
stocks, according to large majority c
those reporting. However, there is ire
quent mention of the popularity Of IKE
trusts.
New security issues have been oni
fairly received in the majority OF In
stances.
Among different types of bonds, pre-
erence for the, higher-grade issues !
almost unanimous. There Is less mer
ton of demand for medium-grade an
high-rate issues in October than In ar
recent month.
Bond Outlook Held Fair.
The outlook for the bond market !.
reported as fair by so per cent of tn,
dealers Fifteen per cent reported {.
poor outlook Optimism regarding a
good outlook for bonds is almost en-
tirely lacking. on contrast to the Sep
TENDER reports, when the majority be-
lieved that a good bond market was
imminent.
Reports as to the demand for bonds
on the part of banks range from fair
to poor. much demand apparently hav-
ing fallen of from previous months.
Money conditions are generally easy
with tightness reported In isolated in
stances.
Only a handful of dealers report
good outlook for general business con
ditions, large majority describing sucl
prospects as only fair, and about rs pc
cent foreseeing a continuance of poc
business.