The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-02-06
BEHIND The
TICKER

NEW YORk-Large sales Of [
s. savings bonds have been bi
help 10 the government in thes
days of huge budget deficits. Ap
proximately $3.50. 0o0. 900 Of Their
were bought last year, reducing
the need for open market financ
ing by that amount. But, para
doxically, a sharp increase Il
baby bonds" sales since the frs
Of the year threatens TO place tn
treasury department in an awk
ward position.
Investors purchased S16e. 000. 00t
Of saving bonds In the first L
business days of 1940-almost
0.ooo,0 900 a day. This virtual,
doubles the rate OF sales In ths
same period a year ago. OF course
this amount will not be main.
tanned through the balance OF the
year. Such investments are always
heaviest In January, when people
who sold securities in December
to establish tax losses are seeking
unemployment for their funds.
Even 80. financial sharps estimate
that total baby bond sales for
1910 may well reach the I'M
precedented figure of 81 800, 900, :
600.
More and more investors-in-
GLIDING big ones-find the 2.9es
yield attractive in view of the
scarcity of other satisfactory
channels.
Embarrassing-In a way, It Ia
pleasant for the treasury to be
able to raise 20 much cash with
no little effort, but this Ii by
no means an unmixed blessing.
The administration il anxious
to avoid any argument about rails
ing the $4,000, 900. 900 debt limit
at this session Of congress. When
you buy a savings bond for SIS,
the treasury has to charge itself
with the 500 1t will owe you at
maturity. The sale Of III billion
dollars of baby bonds would there
fore mean an increase Of 2 billion
dollars In the national debt.
1t would be embarrassing to the
government II the voluntary
eagerness of its citizens to buy its
securities would precipitate debt
limit squabble against its wishes.
For this reason, insiders would
not be surprised IL the treasury
took quiet measures to restrict
the marketing of savings bonds
perhaps by reducing the $4,000
maximum which any one person
In permitted to buy in year.
Earnings - Meat packers have
been agreeably surprised by I'M
good earnings in the past
two months.
The first quarter of Wilson &
Co.'S fiscal year ending January
81 is expected to show earnings
at the rate of SIS year on the
preferred stock. II this prosperity
the company will be in
a position to clear up its remain
ing preferred arrears before long.
Film-Many Wall Streeters have
felt that Standard Brands pros
pective invasion of the photog-
raphic film field was bad news
for Eastman Kodak.
1t won't work out that way,
however. Eastman is understood
to have contract to manufac-
ture the raw film for Standard
Brands. The latter will merely
roll II on spools and sell II. This
isn't at all an unfavorable ar
rangement from Eastman's view
point.
Reports Are That: Liggett &
Myers "B" bought for income =.
Republic Steel net for 1899 esti-
mated at S1.40 share-more
than a dollar of which was earned
in the final quarter--compared to
a substantial deficit in 1898 i.
Portfolio buying in Youngstown
Sheet a Tube Prospects for a
smaller replacement demand this
year impairs earnings outlook for
General Tire & Rubber Libby,
Mcneil & Libby has stable in
ventory profit.
Dupont spent s27,ooo,ooo for
new construction last year-this
years construction OUTLAWS may
double that amount This stock
bought for long-term investment
even at levels close to 193e-40
high Radio-Keith-Orpheum
earnings prospects poor /.
Owens Illinois Glass in favorable
market position Non-sutomo-
tive activities helping Packard
Motors =.
Baldwin Locomotive aggressive
iy promoting its Diesel business
Tide Water Associated Oil
expected TO show earnings of
about 81 a share for 1899 against
SIPS for previous year s. Yellow
Truck 4 Coach has obtained a
large order for tanks from U. S.
army Corn Products hit by
earnings slump of foreign af-
filistes And. that there has
been substantial reimbursement
buying In a few selected rail
stocks around current levels
fsvorites include Atchison. South
ern. and Delaware & Hudson.