New Britain Herald Newspaper, December 16, 1922, Page 15

ROGER BABSON THINKS PURCHASE OF BONDS NOW IS (By Roger W, Habson, Quoted Locally Only by The New Britain Herald). Wellesley Hills, Mass., Dec, 16— There has been much discussion of late as to whether bonds have reached the top. Roger W, Babson evidently thinie pot. 1In discussing the situa- tion today, he calls -attention to the long swing bond cycle and appears to have a hundred and fifty years of financlal history on his side, “The cheapest thing I know of to- day,” says Mr. Babson, “is the promise of $60 a year for the next 20 years, secumred by a mortgage bond. Just ADVISABLE" FINANCE now this $60 will buy, perhaps, a suit of clothes, In 1920, it would have pald only for the coat and one armhole of the vest, We all can re- member when it would have bought two suits, as good as the one it will buy noew, . Everybody is hoping for those old prices to come back, And nothing is more likely than that they WNT come back sometime within the next 20 years. ““Most of us, judging from our own experience, thinks of 120 commodity prices as the ‘high-for-all' time, What I SAY PEOPLE— “This year I advise you to g ‘Join the | New Britain Trust Co. we do not realize is that prices have [of the manufacturing. industry. The been as high three times before, at intervals of ahout 60 years and that between the peaks, each time, they have touched levels as low as in 1896, While earlier statistics have not been complled, suggest that this same swing from high prices to low prices and back agaln, over long periods, might be traced far back into history. “Prices turnéd at the same old peak in 1020, past experience that there should be a short upward reaction, at this time, from the first sharp decline of last year. economic history if prices show a long, level that more nearlly equalizes the' buying power of agriculture with that tinued Mr, Babson, . A fact that the mass of people expect lower prices—of course, for the other tellow's gobds—helps o bring them about, Psychology as a price factor may be more potent, under certain conditions, than the supply of gold. ""As prices of goods go down, the value of money goes up, That's only saying the same thing backward. Then everyone who holds a contract agree- ing to pay him a stipulated amount of money every year, like rent, ' or the interest on a bond, has something that is worth more, year after year. This holds now just as the opposite was true feem 1014 to. 1920, Then these same long-term bonds lost value because prices were rising sharply, “I have endeavored above, con- to-state briefly there is data enough to It 18 exactly in accord with But, it would be against our did not slow trend towards a Xmas Club: at the They have a dandy club and hun- dreds of your friends have al- ready joined THERE. - You can take out a 25¢, 50c, $1.00, $2.00 or $5.00 Book, a Mem- bership to fit every pocket- book. They are open Saturday NEW BRITAIN DAILY HERALD SATURDAY DECEMBER 16 1922, and understandably the influences tending to cause what we know as the Major Bond Cycle—a fundamental movement which no investor can af- ford to ignore. “This typical yéar-end market pro- vides a wonderful opportunity for in- vestors who have funds and faith in the United States, The lesson of the last few weeks in {8, that no ap- pralsal s accurate which . neglects fundamentals. The same people who recognized the ‘beginning of a bear market' last month are certain that things are golng up today. But the fundamental situation has remained the same as three months ago. When everybody wishes to sell is the time that informed buyers carefully pick Bood ‘bonds off.the bargain counter.” . e Increasing stock market activity and Christmas buylng have worked to- ‘| was noted in the motor accessory gether to bring business up to a nor- mal level. The index of the Babson chart shows general activity exactly at the normal line, This is the highest point since September 1920. It is an encouraging sign according to Mr. Babson wiv expects activity to be slightly above normal for the next four to six weeks. Things will then let down a bit according to the statisticlan and the foundation of fundamental conditions will be com- pleted for the next period of pros- perity, WALL STREET STOCK EXCHANGE REPORTS Wall maapecumuve operations for the advance‘featured today's ac- tive dealings in stocks. Another ser- les of favorable dividend announce- ments higher foreign exchange rates and the optimistic tohe of the weekly mercantile reviews were largely re- sponsible for the development o1 bullish sentiment. Trading in Pan- Am'n stocks was the individual fea- ture, the “A” making an extreme gain of 6% points and the “B" 8%, buy- ing of these issues being stimulated by the overnight announcement of another stock dividend of 20 per cent. These gains were reduced later on profit taking. A good demand also equipment and steel groups. Westing- house Airbrake extended its early gain to 6 points on announcement of an increase in the regular dividend rate and a promised 35 per‘cent stock dividend. The closing was firm. Sales approximated 450,000 shares. Members New York Stock Exchango Iu(:btll':mmm ) uccessors to Richter & Stanley R. Eddy, Manager nw-mu.u-dé We Offer 50 Stanley Works. 50 North & Judd. 50 Landers, Frary & Clark. JUDD & CO. Members New York Stock Exchange MEMBERS HARTFORD STOOK EXCHANGR HARTFORD: Hartford-Conn. Trust Bldg., Tel. 3-6339 NEW BRITAIN: 23 West Main St.. Telephone 1815 We Have a Close Market in International Silver Common Stock Thomson, Tenn & T, NEW BRITAIN New Britain Natioual lhnk Blag Telephone Membm Members Hartford Stock Exchange New York Stock Exchange Donald R. Hart, Mgr. We Offer 50 Shares STANLEY WORKS COMMON 50 Shares LANDERS, FRARY & CLARK 50 Shares NORTH & JUDD Prices on Application. We do not accept margin accounts 10 Ounnl Row Telephone 2-4141 Quotativns furnlshed bv FPutnam ° & Company. JOIII Close 73% 184 18% 124 57% 29% High Low 3% 73 184 184 18% 18% 122% 57% .67 29% 28% Evenings too. Don’t wait. Am Can . Am Cr & Fdy .. Am Cotton Oil . Am Loco Am Smt & Ref . Am Sum Tob .. Am Tel & Tel ..125% 124% 125 Am Tob .. 155 153 155 Am Wool . . 95 941% 95 An Copper . 50% 49% 50% Atch Top & S 101 101 101 At Gulf & W1I . 23% 23% 23% Bald Loco 1256% 126% Balt & Ohio .... 42 41% 41% | Beth Steel B .. 63% 63 63% Can Pacific 143 143 Cen Leath Co .. 33% 33% 3314 Ches & Ohio ... T1% 80% 1% Chi, Mil & St Pl 22% 22 22 Chi Rock Isl & P 32% 32Y% 32% Chile Copper .. 28% 27% 28% Chino Copper ... 26 25% 26 Con Gas 121 12 Cor Prod Ref .. 130% 131 Crucible St1 .... 72% 1% 1% Cuba Cane Sugar 14% 14% 14% Endicott-John .. 86% 86 86 % Erie .. 10% 10% 10% Erie 1st pi S | 14% 14% Ken Motors .... 13% 13% 13% Goodrick BF ... 34 34 34 Gt North pfd .. 80 79 80 Am Hoslery .... . 60 Insp Copper ... 36% 34% 36%?Blge Hfd Cpt Co com . 143 Inter Con ks % % | Billings & Spen com .. 23 Int Mer Marine . 11% 11% 11%§Billings & Spen pfd Int Mer Mar 'pfd 51% 50% 51 Bristol Brass ..... Allis-Chalmers . 44% 44% 44% | Colt's Arms Pacific Oil ..... 4% 44% | Conn Lt & Pow p Int Nickel 13% 13% | Eagle Lock nt Paper .. 53% 58% | Fafnir Bearing Co . el Spring Tire 43% 43% | Hart & Cooley .. Kenn Copper .. k. 37 37% | Hfd Elec Light . Lehigh Valley . 63 63 |Landers I Mex Petrol 239% 240 J. R. Montgomery com . Midvale Steel .. 28% 28% | J. R. Montgomers pfd . Miss Pacific ... 16 16% IN B Gas .. 3 36 N Y Central ... 92% 92% /N B Machine . . 4% NYNHE&H.. (1% 21% |N B Machine pfd " 40 North Pacific .. 4% 743 | Niles-Be-Pond com . A 50 Pure Oil 2T% 27% | North & Judd .... . b3 65 Pan Am P & T. 863% 88 Peck, Stow & Wil 35 Renn R R .... 46% 463% | 1toseell Mfg Co § 90 Pierce Arrow .. 12% 13 Scovill Mfg Co . 162 Ray Con Cop .. 13% 183% | Souch N I3 Tel . 180 Reading 78% 78% | Standard Screw . 305 Rep I & S 47% 47% | Stanley Works [ 62 Royal D, N Y. 5114 51% | Stanley Works pf . 39 80 Sinclair Oil Ref 31% 81% | Torrington Co com “ 45 South Pacific .. 871 87% | Traut & Hine .. ¥ 22 South Rail . 23% 23% | Travelers Ins Co s 715 Studebaker Co . 132 133 Union Mfg Co .. ¥ 48 Texas Oil 7% 47% [ Tex & Pacific .. 20% 20 U, tonight. JOHN P. KEOGH ', Member Consclidated Stock Exchauge of New York #aterbury STOCKS Nflf Danb: Middletown BONDS Direct Private Wire to New York and m G. F. GROFF, dgr.—Room 509, N. B, Nat'l Bank BH‘-—M 1018 “Yours “SANTA” Nc:w Britain Trust Co. Tobacco Prod . 84 83 Transcon Oil ... 11% 11% Union Pacific ..137 136% 136% United Re St .. 70% 70% 0% U S Indus Alco. 66 66 66 U S Rubber Co. 52% 52 2% U S Steel 107 107% Utah Copper .., 64 63 64 Willys Overland. 6% 6% 6% Mid States Oil . 11% 11% 11% ‘Westinghouse 59% 595 59% (Putnam & Co.) Bid 83% 11% Christmas is near—a word to the. wise, take a look at the Christmas Gift Suggéstion page in tonight's Herald. ¥ 4 121% To Holders of U. S. Victory 4%4% Bonds (5th Lib. Bonds) Asked Aetna Life Ins Co ....670 685 Am Hardware .238 243 “Well-Well-Wel Look at Your Bonds If the number is preceded by the letter A, B, C, D, E, | F, the Bond is called for payment by the Govern- ment and the last coupon will not be cashed by them, thereby stopping interest on these Bonds December 15th. If you find this to be the case bring them to the Burritt Savings Bank, We will either cash them for you or credit them on your Did you know that the Bur- ‘ritt Savings Bank has some of those New Leather Bound Books that are just the thing for that Christmas Gift to the. kid- dies? Take a Dollar in there and start a new Savings Ac- count and get one for John- nie or Mary.. Ibelieve in them, TOO; It's Good for Kiddies to Learn to Save. “Yours, $323,499,822, 8. Treasury—Balance, United States Victory Bonds, due Dec. 15th, War Savings Stamps, due January Ist, and Christmas Club Checks Accepted Now For Deposit At This Bank, Where 4, % Interest is Being Paid Upon Deposits Savings Bank of New Britain “SANTA.” Organized 1862 ; , Resourees Over $13,500,000 Burritt Savings Bank Corner Main and Pearl Streets, Hartford, Conn, Open Tonight —7 to 9 P. M. ; Capitdl $2, ooo,ooooo Surplus Funds $2,000,000.00 i ; 3 1 Safe Deposit Boxes, $5.00 and upward?s. Settlement of Estates. - 3 Foreign Exchange to all parts of the world. LETTERS OF CREDIT — GENERAL BANKING Bank by mail. It is safe and saves time. - Burritt Savings " Bank Open Saturday Em- ing7to9p. m. The Hartford-Connecticut Trust. Company CHRISMIAS | GIFr suGGnsrsz FOR HER .. FOR FOR THE KIDDIES Want Ad 65 AR On