Show FINE OUTlOOK FO FOR FORI I I II I BONDS BOiS SAYS I DADSON BABSON 4 Special Dispatch I hAnSON PARK PAnK MaS Mass Juno 13 IS There Thero There is a bright spot In I moro more or lee less cloudy business out 1001 dIng to Roger W IV Dab Babson I son the Ille statistician who ho toda I predicts predict that we w will agaIn sec see th I Iday day when hen sou sound d bonds sell a a I 8 ii per cent basis bastI bastIA A detailed stud study of conditions made b by mr say 1111 in Ba Babson Bobson bon shows show that Investment market travels tr vels a trend running between 3 S I cent as a 11 Iowa low yIeld 6 per cent a as a point sas Mr r Babson the list isSI eara ean ars thIs thi swing h ha been I four tour times and Indications are that we wo have h v DO started on th the fifth ement Bond prices price for tor instance wore wor low in 1875 good bonds were ere re then folding 6 t 20 0 pr per cent B By 1880 the lie mariec maret had risen so 0 that se so- so so were cre selling on a 4 90 per percent percent percent cent basi basis Fh e vars ears la later ter In Iii wo no find that prices ha hau r ilsen so as to gise eh gh 0 an averse 11 of about 4 I 30 pel pec cent and by 1900 I C had good sound bonds bond sellIng a as high as to St Sa per centI cent I Then Thon the down swing S began and b by 1905 1903 bonds sold on a 4 per Cent basis In 1910 they were around ll the 4 30 10 per cent Ie lesel el The Th 6 f per por percent percent cent lett basis was leached cached in 1915 and by 1920 we w found these theo same good bonds sellIng on a pel cent basi basis e W e have hav charted the th market since 1920 this pie pie- pie IOUS swIng and tle tIe parallel be- be bet in be-in t e n the action of the nt markets of the late l seventies en ties an and the early eary nineteen twenties is re- re re m Bonds lose ios the 6 40 0 basis to 4 Sa Se per cult cOlt In the tho fIrst fIve ears ear of the present SIt swing Ing exact as the thc did in lit the thelast thelast last century and h hs e 0 iov OW started on a 0 sidewalk mo eme e as they did in the call eail eighties CICLE REPE H jf the ning Is completed and both history and the ho action of OUI eu r nt market markt indicate that It v be bonds will be Selling at price th t hit will again held lel 1 less than tItan 4 per cent While t bIle this stI Sll of pi Ices will II not bo be stead the thu broad trend tr nd should be b distinctly Up d and the Investor will II bene benefit fit tit both from hi his Intel eat and an In equity S IS nen aI asked d about tho tile foi bonds Mr Babson Dabson ro- ro ro plied piled thu thit hit ho would give us the and let lu us thaw our 0 own con con- con conclusions Bond prices price sa sais she he ale me 1 c do- do de dependent pendent nt upon several facto but Iut I mad roost most quickly to chances changes m in mOnC t lutes and n the of oC prices Business to 0 In- In Instance in instance stance Is slowing up at the pres pres- pres eat time limo the sho s PI activity Ity at 13 per cent be- be beJo below be below low Jo norma norm normal an antI and 1 the dernai demal d for 10 ions ns bv lit high grade prado commercial Irma I la Is Mono lene is cf at- at loaned to s m men n is 15 pilIng up in the banks hither ther than han lose all the th interest on It tho thoI I bankers put it Into bonds tempo tempo-I tempo tempo ant This bu Ing bv Lv the tho banks nCI eases the demand foi fos good on londs s Atthe At the h same lime me the bud busi I t I I I 1 I I I I I I nes i ness tess man mail rinds unas that file nis hi I ido do not require additional Invest In Investment ment as aa they do is when hen hen things aroi are aro I i booming He Ho In iii turn bu buys bus bonds II lIh his surplus and the demand Is again Increased Later when hen heno lIS o 0 siness picks up and the tho banks I again haa hav har a demand for tor l loans the sell fell their bonds to i supple the th cash to their commercial commer- commer I i cial borrowers Business men I commer-I like like- likewise wise liquidate part of their hold hold- holdIngs holdings I ings tugs to In invest cst mo moie e mone in their bu and the bond Lond market suf- suf sut-feis sut I fe lei from too loa roan mall mani sLl- sLl sel sellers lers hers and not enough bu ers o nD TIO S i I It If Ir buln business ss gets worse tho the de- de demand demand de demand mand for tor good sound bonds for surplus funds of banks trust funds and ate privat enterprises will InI Increase In- In I 1 crease proportionally and pi will tend to strengthen Later when hen things thing begin to boom again monel will flow low back Into Industry and nd the th bond market D will III show sign of Or f softness Whether bonds bond rise further hold bold Ie hotel lev ell Is or will wilt depend upon i 1 severity of ot the th present dullness In general business Mv Mt 1 advice to the tho how how- howe how e CI concluded Mr Ir Babson is I I to disregard all these thelo slight Inter Inter- InterI inter fluctuations and to buy I good sound ou bonds with his funds jut just as fast fat as he ho accumulates lund fund depending on the bro broad broads d I swing 0 over oter e ethe the th nex next 20 tears Lars ars rather thin than tr trIng Ing to catch a a t two 0 penny I pt 1 on some som minor fluctuation Buy good Rood bonds for stead Income and for a substantial Increase In Inequity Inequity Inequity equity bet between een now and the tile time ou will III ne need d the mOnE moie mo C InI I lUCA CHICAGO June Jun 13 13 Open Olon n Low Close Clou July Jilly 1 10 1121 llO i I 11 1 12 1 14 1 12 l Dee Dec 1 14 2 1 16 0 1 I 1414 14 2 1 15 Corn Corn- orn l July 0 80 tola 81 SOs o 80 Sept 80 0 sOh 0 80 7 72 9 80 Dec Hy 74 7 73 Oats U-ts- July 4 7 47 7 46 46 4 Sept ept 12 42 2 9 42 42 42 Dec fa a 43 U n IDec Lard 13 I July 10 1052 32 10 5 3 1050 10 iO 60 1050 10 50 Dec 1085 10 85 S 10 65 1080 10 10 80 10 1010 1080 80 IDee tiba- tiba 3 july 9 SO SOI I t Sept bellies D to 80 July 10 1040 fO 40 Sept Sapt I |