Show BUT r. r PROSPERITY iq IN 1 Local Conditions Sound 1 iM p With With Outlook for Bani Ban Ban- i n Jer r Year in Every Line 4 I By y J. J A. A HOGLE CO ot of business busness expansion I slon sion and d financial gain during 1925 t Ji Jias s seldom been equaled in our rc I II growth The year began I Minder favorable favorable conditions with Jarga Ia e bank reserves and plentiful 1 I t at low Interest rates good i. i abor abl rt conditions and a lar large e defor de- de I de-I I A m d for all al commodities with the I J spending power of ot the American the greatest in its history I conditions became Izod bOd for the first time In eleven years rears and though affecting us more In sentiment than practice these Improved conditions have had considerable con- con effect on financial opinIon I 1 Ion Ibn n and the placing of our surplus I blinds in foreign Investments As tine surveys and analyzes these I happenings and notes note the extent of the boom in building real estate the automobile industry it is evident Ident that the great rise rie in the security sec market which began at President Coolidge's election electon was vas rightly discounting what has oc- oc tuned t That first great advance stocks and bonds culminated in February then a severe decline occurred oc- oc which ran till ti the end of March with slackening of Indus- Indus continued into the early summer s Since then a steady adVance advance ad- ad Vance in practically all al financial affairs has taken lace T e causing the greatest general credit expansion we ever experienced expert expert- and equaled only once be- be ore prior to the present present bull bul mar mar- ma- ma Itt ket lt One effect of this credit exor ext ex- ex t or inflation has been ben weal weak fining in the prices pries of high grade I bond which have hare gradually declined de- de cinet e since summer but stock rI Wees es rose lose to such an extent in lf ll l that their yield became less Aan the average yield of new bond Jn es A careful estimate made by loody at the end enl of the tho year shows that such bonds are arc now nosy selling to toj Q j y per cent lets less than typical typical cal sticks stacks The stock market marlet as a l continued its rise Into the la lat t week of the tile year but the vol vol- uTe ure of ot trading has lessened since fa faU l and nd with the exception of a afew few rails rais the last use rise has been in th highly speculation securities s. s THE ThE PRESENT i There is much difference of opia- opia io o as to whether overproduction Is is i certainly it has taken talen place pice in sugar falling rents show show Jit In n building indications point to tt Jj iH cn Jn and the pries prices of and copper confirm at least opinion that there Is a plent- plent fu supply of these commodities a However there can cam b bono no doubt prosperity is general through- through oui ul the country when we note breaking breaking car loadings the in the rubber indus- indus tr the fact that the steel com com- ies 1 are working at over 80 SO per capacity against 50 per pel cent last laM at summer the increase in mail mal or order er business busness copper consumption l eCord figures prosperity in agI ag- ag I lure with rising grain and prices in other farm products consequent and marked im- im r in the demand for farm the remarkable business busi- busi ness ess being by the silver lead lead siver-lead whose earnings are the Jarg- Jarg est st in their history the marked Sin inD n steady improvement in the business uness of the electric light and ower oer companies companies all all this evidence t f bf f present prosperity and the In- In cr sed earning power that goes wl vii h it it both for the companies and their workers accounts for the in- in acco ther of surplus funds which are rese Available for investment ITHE THE YEAR 1926 JJ Practically all al forecasts point to and prosperous business Conditions until late spring Pr sumner sumner sum- sum ner and unless inflation and over- over should continue to de- de ji only a mild mid business Lion is apt to occur Credits have lon expanded abnormally and some in inflation In- In has at least begun and y events noted in the above indicate that caution is nore e necessary now than at any anytime t time sr since sr 1919 In financial ia fO fore fore- J a the value of the opinions expressed depends upon deductions formed ored from previous events In- In flaton and have havo al- al been followed by business de depression de- de liquidation and falling se security security se- se culty prices but money and cap cap- capIta ca- ca catar se-I se Ita tat tar are plentiful and one is just Justi- Justi in expecting continued business bust busi I ness ies feS prosperity at least for many Months to come U nOt S However three times times' during the theat theja at quarter century in 6 1903 14 1913 ja and arid 1917 we have had expensive ex ex- 1 pensive breaks and severe liquidation liquida liquida- Jon Ion in securities with no previous Inflation or marked overproduction t tick Jck ck averages have havo never been Jt higher than at present but there is Isho ho rio I doubt that heavy distribution from strong Jias a ag been taking place I into nt weak hands as evidenced by bythe the the record Increase in marginal loans While It is surely a a time for caution cauton in the stock stock market mar mar- ma- ma maet I ket there are still some issues et which have hav hava not had their theira daj a ay and we may look for advances tn fn n some Bome of the sound stocks which ae not yet had their chance lae as we begin the new year her he best policy policy in our minds is ex extreme extreme ex- ex reme caution cauton in new commitments for the Inexperienced to be ou out nc of the eastern market entirely at this time LOCAL CONDITIONS Based on financial history we have little t fear locally from an changes which are apt to occur dining dm Ing 1926 throughout the coun coun- try Our liquidation has been so complete during the past five years that the foundation has hs been laid for many years of business growth and prosperity Practically every commodity which we produce ex except except ex- ex sugar Is bringing high or al at a l least st satisfactory prices Even copper on account of the management management management manage manage- ment and economic conditions conditions- at atthe atthe atthe the Utah Copper is bringing re re- re turns Lead remains in a strong position and will wm no doubt remain so as long as general business conditions continue satis satis- sats sats- factory Our silver lead securities are yielding a a larger Income re return return return re- re turn on their price than any Securities se securities se- se of a like lie nature in the United States There is no inducement inducement induce induce- ment for investors investor to sell sel them at atthe atthe atthe the present time and when eastern capital which is satisfied with wih a aless aless less ess return is familiarized with wih their merits meris they should sell sel on a basis more nearl nearly equal to other mining securities owned in the east easi Our Our smelters are making record production and earnings with full ful employment at good wa wages es Finally Final Final- ly Utah has brought in an oil oi well wel under conditions that make it i practically practically certain that large production wl will be attained in the state within a few tew years ears REAL ESTATE In spite spie of all al the favorable conditions conditions con con- enumerated real estate is still depressed but this condition cannot continue if progress Is to be made In our other affairs Securities Scour Scour- Iles commodities and other real estate throughout the country have adapted themselves to the changed buying power of the dollar dolar Even local ocal taxes have had to be adjusted to o meet the new conditions and at present are one of the chief deterrents deterrents deter- deter rents enta to real estate investments Yet we take the same position on real estate as security inv investments that that the time to bly Is when conditions con con- are depressed as at present and when no one seems to want wanto to o buy and to sell sel if arid and ard when a boom oom occurs In our opinion no investment can be made In Utah today oday with greater safety and with wih the he promise of a a surer reward than thanIn thann In n well selected selected wel-selected real estate FRENCH SECURITIES France has a huge volume volume of term short-term internal debt falling failing due this year These debts have haye to be paid laid by money raised through taxation taxa- taxa ton Jon printing of paper money or 01 new borrowings Taxation is v very ry unpopular in FranceS France Fance there can be beno beno beno no foreign borrowing until intergovernmental intergovernmental inter inter- governmental debts are settled with Great Britain and the United States Caillaux's internal gold loan can was a failure so France Fance has had to resort to printing more paper pape There is still hope of preventing a continued slump in the value of the he franc by the funding of the French rench Fench debt to Great Britain and the he United States thus opening the thedor thedor thedor dor for new credits credis Public loans probably could not be made at this time but substantial term short tem hort-tem credits could be obtained The present trouble i is entirely with wih the internal debt If I the French Fench politicians impose a capital levy on their own people people through inflation this is their own affair It I should not shake the confidence of Investors in this country who hold French dollar dolar bonds BOND MARKET The general Investment situation has been improved by the te events noted above The stock market has become steady and there was wa relatively relatively rela rein little decline In the bond bonA mar mr market ket following the recent break brenk In stocks socks as a matter mater of ot fact there is isa isa isa a tendency on the part of those who have made large larse lare p profits in stocks to invest these profits in bonds bondS Brookmire says regarding the bond market The investment market has developed very little change of a fundamental character in the past month The th sightly rIsing rising ris rIs- ing lag trend of the past two or r l three weeks has probably been due somewhat somewhat some some- what to speculative accumulation of bonds In anticipation of sale at a I profit profi during a period of f h heavy havy vy Investment in investment investment in- in vestment demand in Jan Jan- Ja- Ja uary t tWe We Ve still sti suggest t that lt well wel se selected selected selected se- se foreign government should be considered hy by y 3 in investors In- In vectors estors who desire a lil h rate Jf dr of 1 interest and can afford to hold hold the bonds bond over a period of years yeas |