Globe-Gazette from Mason City, Iowa on December 31, 1936 · Page 129
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Globe-Gazette from Mason City, Iowa · Page 129

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Mason City, Iowa
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Thursday, December 31, 1936
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Page 129
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MASON CITY GLOBE-GAZETTE, DECEMBER 31 • 1936 Sec. C—9 1936 DIFFICULT 12 MONTHS FOR BOND INVESTORS Inflationary Scares, Low Interest Rate, Small Offerings Feature. By T, E. HOUGH, Vice President HALSEY, STUART and Company Inc. The year 1936 will be recorded as a trying one for the bond in- this country .than elsewhere and to the efficient distributing machinery which grew up to meet the demand for conservative investments. Incentives for thrift, and confi- i dence in its desirability, have been | seriously impaired during recent years. While investors who confined their purchases to the highest grade bond offerings came through the depression years perhaps better than any other single class of investors, substantial losses were in some cases experienced among lesser grades of securities, ' particularly by those who were obliged to sell at the low level which existed in the trough of the depression. The recollection of any such losses naturally persists. This, , coupled with concern for the fu- vestor. "To "recurrent inflationary! ture, the existing low return on scares were added record low in- savings and investments, and the terest rates on new offerings, restricted volume of r.ew financing other than refunding, and contin- ation of social and- legislative trends seemingly adverse to his interests. Bond investing more than most I pressing urge to replace outworn equipment and scaiisfy deferred wants, have worked against the '•rainy-day" theory so well established in this country, particularly I in the middle sector of the market. Less Conservative. other undertakings involves long! Thus, contrary to what one term confidence. It is concerned | might expect, growing nut of the with both current and longer I vicissitudes of the depression, range risks of business, the long | some investors who now have term trend of interest rates, and • greater need for conservatism the stability and purchasing power • have of choice or necessity become of the medium in which interest j less rather than more so. Some and principal are payable. j such, including large endowment Quite naturally, in view of the j funds, have for the first time add- uncertainty which existed on all . ed, as an inflationary hedge, com- the foregoing points throughout j mon stocks to their investment the year, the right course of oc- : holdings. Others, larg? and small. lion was indeed a perplexing one ! either in an effort to increase in- for even the best informed invest- j come or to participate in hoped ors. The problem was perhaps less j for capital appreciation, have pur- difficult for institutional buyers,; sued the same course, who, having a more or less con- ! Nor has the bond distributor, .tinuous inflow of cash for invest- i however much he may alive been nent, are able to obtain an aver- j concerned by these trends, been age interest rate year in and year out, and who have less reason to be concerned about inflationary trends. Quite naturally, therefore, primary . buying support came able to do much to combat them. His narrow margin of profit on a still restricted volume of new offerings has not permitted him to ;o much beyond the large institu- that it has something to lose by ill-considered moves. In this respect the United States has had a priceless asset growing out of its fortunate economic and political situation and the resulting wide property ownership. No argument is necessary to j prove that the removal of the desire and incentive for thrift and the weakening of the foundations of property ownership, whether through unwise and discriminatory taxation or through shortsighted legislation, have reactions for beyond their immediate effects. Increasing dependence on government and growing socialization of industry are natural outgrowths of such a program. Without attempting to pass on the merits of that eventuality, the observation appears justified that it is contrary to what has been the accepted American way, nor is it the program Which brought us to a position of world leadership in a comparatively short span of years. Opinions Differ. Despite the outward evidence of business progress during the year, opinion differs as to whether real solution of fundamental problems has been registered. On the one hand, the rising tide of business and the decrease in unemployment are pointed to—on the other hand, the continuing government deficits, incurred in part to bring about this revival. On the one side are cited legislative trends, approved by majority vote of the electorate, designed to reguatle and stabilize business, to correct past abuses, and to distribute income more widely. On the other, doubt is expressed as to the ultimate effectiveness of many of these measures; notably the undistributed profits tax, the social security act .the public utility holding act, the Robinson-Patman act, etc. primary . ouying support came; go much beyond the large mstitu- i . * Cf 1 I Fl U throughout the year from this sec- i tional buyer, eager for a place to i More Oteel, LCSS rlesn tor of the market: individual investors, particularly those of average means, participated to only a very limited degree. Incentives Impaired. The American bond market has employ ever mounting suroluses. New Trends Evident. There are obviously both social and business implications to these trends. During a period of worldwide unrest, reappraisal of the been unique among the markets of '• whole existing order, and clamor the world for the wide-spread par- i ticipation in it by all types and grades of investors. That this has ' for change, often without adequate consideration of consequences, the bulwark has always been WESTERN RAILS REPORT GAINS IN TRAIN OPERATION They Are Ending Year With 21 Per Cent Increase Over Last Year. in Future Armies Seen LONDON. Ont., (UP)—The day of the horse in war is ended and ^ _^_ will never come again. Col. G. R. 3"father advance in public patronage approximating 25 per cent. "The lowest ebb in train travel dian department of National De- j was reac hed in 1933 with a steady CHICAGO—"Western railroads will end the year 1938 with a 21 per cent increase in passenger revenues over the comparable 12 months of 1935." This statement of substantial increase in rail-patronage was issued by Hugh W. Siddall, chairman of the Western Passenger association. It compares with an 8.96 percentage increase '35 over '34 and 2% advance in '34 over '33. Coincidently Chaiipian Siddall paid high tribute to the selling help of newspaper advertising conducted jointly by all the Western lines in 1935 and repeated during the current year. The first experiment included 374 daily newspapers with an expanded schedule in 1936 to 850 daily newspapers and over 6,000 country weeklies. Improved passenger revenues for the Western lines is emphasized by the fact that during the first six months of the current year they carried more people west of the great gateways of Chicago, the Twin Cities, St. Louis, Memphis and New Orleans, than during the entire period of 1933—the last year that preceded the drastic reduction in passenger fares and the elimination of the sleeping car surcharge. Expects Further Gains. With a constantly increased number of air conditioned cars both pullmans and day coaches, faster schedules, speed trains and streamlined trains, Mr. Siddall ex- the year 1937 will show Pearkes, director of military training and staff duties of the Cana- been true is due, of c-ourse, to the j the propertied class, small as well wider distribution of wealth in' as large, for the obvious reason HAPPY NEW YEAR And we want ro thank you for your kind patronage during 1936. PAUL'S RADIO SERVICE Harriet M. Clement, Mgr. 7-9 Second Street S. W. fense. believes. "The horse," he said, "will never again go to war." ""Colonel Pearkes said there would be more steel and less flesh in the armies of the future. A growing percentage of new homes in this country are being financed under the insured mortgage system of the FHA. From June through October the value of new home mortgages accepted for insurance by the FHA averaged from 41 to 44 per cent of the total value of one and two family dwelling building permits issued in cities of 10,000 and more. During the same period last year the average was 28 per cent.- States News. United downward curve from the peak year of 1920 when passenger receipts approximated $1,300,000,000 for all the railroads of the country, he said. "We are especially gratified with the continued advance in public patronage right down to the end of the year. The winter business is showing a <JO per cent increase to the west coast with many trains running in double sections. "The public has found the big comfort improvements inaugurated during depression years just as attractive during winter as in summer. Knowing commentators have thought that air-conditioning would appeal merely during the hot spells of the mid year, but the traveling public has found this WE of the Pritchard Motor Company . .. THE HOME OF FORD MOTOR CARS AND COMMERCIAL UNITS Wish You and Yours A Happy and Prosperous NEW YEAR We Wish to Thank You for Your Patronage in the Past and Resolve in 1937 to Render You and Your Car the Best of Service PRITCHARD MOTOR COMPANY One Block of Service—From State to First St. S. E. on Pennsylvania Avenue feature just as helpful during the winter as during July and August. It has proved to be as helpful and as relaxing due to temperature control and fresh air supply as the engineers predicted at the beginning o£ this rehabilitation of passenger equipment. Next to Low Fares. "In fact, traffic men throughput the country, place air-conditioning next to reduced fares as the greatest selling gadget that has come to rail travel. "Travel to the west coast has received a great impetus this year with the sale of these tickets going into effect Oct. 1—about two .months in advance of other years. These rates are lower for the winter season than ever before in railroad history and are practically a continuation of the r*r- ord-breaking low fares that maintained' throughout the summer months. "Railroad management late in I 1933 sensed the opportunity for fundamental merchandising with the drastic reduction in railroad fares and the elimination of sleeping car surcharge, plus the beginning of an era in new physical attraction on the rails which sets a new epoch in transportation development." Air Races Go to Cleveland 5 Years \ CLEVELAND, (UP)—Cleveland, mother home of the National Air Races, has been designated as their site for the next five years. L. W. Greve, president of the National Air Races of Cleveland, Inc., has announced signing of a hew contract with the National Aeronautical association, governing body of aviation in the United States. Oevland has been host to the races five of the last eight years. The races went once to Chicago and once to Lo» ^Angeles during the eight-year period. A determining factor in awarding of the contract was the $3,341,499 WPA improvement of Cleve- land airport. The Cleveland field is considered the finest in the country for the national program. With the expanded area provided by the WPA project, the races and exhibitions may be staged on one side of the field without interfering with transport liners which almost constantly are ' taking off and landing at the port The new contract takes the place of an agreement which still had four, years to run but which specified that in two of the five years of its duration the races should be staged in other cities. A science note says that brook trout lose 2.6 per cent, of their length in death. There is a fisherman's alibi that"is an alibi.—Detroit Free Pr«M. Students to Try EPIC LOS ANGELES, (UP)—Upton Sinclair's EPIC may be dead but students at the University of California are still going to give it a tryout. They have organized student co-operatives to solve the problem of housing and to reduce the cost of living. They expect to reduce both to $20 a month for each co-operator. HAPPY NEW YEAR DEWEY'S CAB PHONE 213 Happy New Year Many events and occasions of great importance will take place in 1937, that you will want to remember. The best remembrance y o u can possibly have is a good snap-shot of it. When* you have your snap-shot made here you are assured of the finest quality. There is a Drug Store near you, which is a CO-MO dealer. CO-MO PHOTO SERVICE TO EVERYONE! Forest Park Grocery & Meats 1007 Fourth Street S. W. Phone 943 And we sincerely thank you for past patronage. Bieth-Johnson Auto Service 124 South Delaware Ave. Phone 765 START THE NEW YEAR RIGHT Drive to the Lor C»bin Oil Company and have your tank filled with DIXIE GOLDEN HIGH-TEST Gasoline. It's the same price as regular—NO premium to pay. Do this, and you will not have to crank and crank, or be pushed. With DIXIE GOLDEN in the tank, you simply step on the starter and the motor starts immediately. So, rifht now at the berinninc of 1937—try DIXIE GOLDEN HIGH- TEST. We ruarmntee that your. motor will have better p>ck-up . . • that it will not cough, skip or stop. Just rive us a trial. We know you will be back for more—anu to SAVE money. HAPPY NEW YEAR TO ALL! LOG CABIN OIL CO, STATIONS AT MASON CITY, CEDAR FALLS, KENSETT, IOWA, AND GLENVILLE, MINNESOTA Plan to Own a Home of Your / Own in 1937 Kow Much You Will Admire It Will Depend on the Building Material You Use See us first on the very important matter of selecting the proper building materials for the building of your new home or remodeling. We will help you make your selection and prepare free helpful estimates. We arr equipped to supply the nest, material? to complete anj kind nf s job. When you buy your materials herp you are assured nf perfect results and lasting satisfaction at a low cost. Consult us with your plans. Use Our Planning and Cost Estimating Service Without Obligating Yourself in Any Way WE FEATURE THESE QUALITY MATERIALS Face Brick Bricklayers' Cement Portland Cement Lime and Plaster Mortar Colors Paints and Varnishes Roofing and Shingles Insulating Board Water Proofings Built-Up Roofs WE ARE EQUIPPED TO CARE FOR ANY ROOFING JOB, REGARDLESS OF SIZE. OUR FREE ESTIMATES, EXPERT SERVICE AND QUALITY MERCHANDISE WILL SAVE YOU MONEY. MASON CITY BUILDERS SUPPLY CO. 221 Seventh St. N. E. R. W. WILLIS, Mgr. Phone 955 HAPPY NEW YEAR We take this opportunity of wishing our many patrons Happiness and Prosperity during the coming year. We sincerely appreciate the businesl that you have given us and hope that w* may continue to~ merit your histhcsrt confidence.

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