Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-12-05
SECURITY DEALERS
MORE OPTIMISTIC
Bankers, Replying to Query,
Believe Depression Will
End by Next Spring.
Special Dispatch to The Star.

special Dispatch TO Tine Star.
CHICAGO, Ill, December 5--A ma
jority of the investment bankers who
are willing to express an opinion on
the subject believe that a definite end
to the present depression period will be
reached not later than next Spring,
according to replies received to a ques-
tionnaire circulated by Lawrence Stern
81 Co., investment bankers Of Chicago
and New York.
Practically every one who is willing
TO hazard a guess apparently believes
that the recovery will be well under way
some time during the year of 1882"
said the Stern review. which sum-
married. replies to the missionaries
which were sent to representative finan-
Cial institutions in each of the II Fed
eral Reserve districts.
Many Refuse Comment.
The review said that a considerable
proportion of the bankers canvassed
declined TO express an opinion and
number Of others believe that the dura-
ton of the present period is dependent
upon the foreign situation and other
developments which cannot now be
forecast OF those expressing an opin-
ion, II per cent were willing to go on
record as predicting a definite end Of
the depression and a rising tide Of
business next Spring, and the remaining
29 per cent believe that recovery will
take place in the Fall of 1882.
A somewhat improved feeling of OPP
timism among security dealers in No
vember was also indicated by the review,
which said that about 40 per cent of
the investment institutions CanvaSSed
fair outlook hO06
market in the coming months. This is
in contrast to the october outlook,
when almost all of the dealers were dis
couraged regarding the future of the
bond market
National Summary.
A consolidation of the replies to the
Lawrence Stern g. Co. QUESTIONABLE
from the u Federal Reserve districts
presenting a brief summary of invest
ment opinion throughout the Nation
at the end Of November, follows
Retail distribution of bonds in No
vember showed a marked increase ever
October majority Of dealers report
ing business anpro : +, Gtely 20 per cent
greater than IN the previous month.
Stock distribution by security houses is
still at a standstill.
Some of the more attractive bond
offerings. particularly during the first
part of the month, were fairly well re-
ceived. The ma iority of dealers, how
ever, report poor lecept.cn Of new Of
feringS.
High-grade bonds continue to be the
only class of securities in which there
is any public interest. Apparently no
increase is yet visible in the demand
for medium grade investment bonds.
A large majority report munic!pals
es most salable under present condi-
tions. Public utilities come second, |
with a considerable following. No
other types of bonds were mentioned
this month.
Reports ale unanimous that there is
no bond buying whatever on the part
of banks at the present time.
Small majority of dealers report that
money conditi gus are fairly easy, but
replies from the country districts are
almost unanimous in reporting tight
credit.
With regard to the outlook for gen.
eral business conditions, about AS per
cent of the dealers report that senti-
ment is somewhat better than last
month; 10 per cent report the outlook
is worse than last month, and the re-
mainder report that no change is Wis
ible.
New Security Offerings.
New security offerings in Novem-
ber," said the review, consisted OF
so4 .49a.777 in bonds and S23833 ITS in |
stocks-a total of Sl18,33l, 952.
Although the above total represents |
a greatly curtailed volume in comparison |
TO the average this year, the November |
offerings are nearly five times larger
than the minimum volume OF S24,- |
l24,702 registered in october.
The greater part of the bond volume
during November came in the first half
Of the month and was accompanied by |
a substantial rise in bond prices. This
furry of activity. however, quickly sub |
sided. During the latter part OF the
month prices receded to a new low and
offerings were again Curtailed.
"Municipals continue to be the lead
ing bond classification, and the total
of ISL ,350,777 shows good recovery
from the low point of about $l5,0o0,O00
reached in October. The November
total however, is still less than half
the monthly average for the year.
Public utility financing is second in
volume, and the popularity Of munich
pals and public utilities is further borne
out by reports from dealers which show
that the only public interest is in these
two classiflcations.
Only One Rail Issue.
"A single Sl2,OOO,OOO issue-the Gin
Cinnati Union Terminal 5s-made up
the railroad total for the month.
Other important issues offered in
November were the $1,000 900 Public
Service Co. Of Colorado IS and the ST.
100000 North Boston Lighting Prop
critics 5l2s
Although stock offerings show a
much larger volume than in recent
months, the greater part of the total
was accounted for by single offering
Of rights by Electric Light & Power Co"