Presto
Issue: 1929 2218 - Page 16
February 2, 1929
PRESTO-TIMES
16
U N E M P L O Y E D MUSICIANS.
"What are we going to do with the 10,000 musi-
cians displaced by sound devices?" asked Senator
Couzens at a Senate hearing recently. "Put them to
digging ditches or send them back to the farm?"
How to take care of the man shoved out of his job
by a machine—a sound device for reproducing music
in theaters—is a problem the Senator would like to
solve.
The Growth
of Your Business in
Band and Orchestra Instruments
Depends on the Prestige of the
Manufacturer in Producing Meri-
torious Goods.
That Is Why an Agency for
the Products of
C. G. CONN, Ltd.
ELKHART, IND.
is an Assurance of Success in
the Band and Orchestra In-
strument Field.
The Successes of C. G. Conn,
Ltd., Are Due to the Perfect
Scientific Processes in Pro-
ducing Instruments of the
Highest Tonal Value.
DISCRIMINATING MUSICIANS
Appreciate Their Tone.
WORLD-FAMED BANDMASTERS
Proudly Proclaim Conn Instruments to
Be the Greatest Aids to the Best Band
Music.
SUCCESSFUL MUSIC DEALERS
Attribute Their Triumphs in Selling
Band and Orchestra Instruments to the
Potency of the Name and World-Known
Merits of the Great Line Made by
THE BUSINESS
OUTLOOK A TOPIC
In Talk of General Interest Delivered Before
the Lions Club, E. F. Lapham Gives Views
on Conditions, Causes and Possible
Developments for 1929.
E. F. Lapham, widely known to the music trade,
in which he spent a number of years, some time
since engaged in another form of business. But Mr.
Lapham expresses the belief that his experiences in
the music business equipped him in an admirable way
for his new activities and this fact he is free to voice
on any occasion. In a talk before the Lions Club in
Chicago recently Mr. Lapham gave interesting facts
from his experiences to illustrate his views on busi-
ness topics. Mr. Lapham said:
I was requested to say something to you on the
trend of things or what the outlook is for 1929. A
year ago I talked of 1928 before several organiza-
tions, saying anyone who did as well in 1928 as in
1927 could be satisfied as there would be about the
same volume of business done. The year started
poorly, but it more than made up for its early slow-
ness later on. The Central Trust Company in a sum-
mary recently stated as I had forecast, that the actual
facts were that the business done in 1928 was prac-
tically the same in volume as in 1927. So you see
prosperity marked time in 1928, unless an ex-
ception be made of the stock market.
Moody's Investment Service, one of our authorities,
says, referring to stocks: "This is only the fourth
period in the history of finance when the haphazard
buying of anything and everything showed a profit.
The former periods were from 1857 to 1864, 1877 to
1881, 1897 to 1901." They believe that the next few
years should present opportunities for even larger
profits. The future should be the best in the history
of the country." The only thing the matter at the
present time is inflation of financial credits or the
high cost of money.
Mr. Harry Wheeler says the only discordant note
in future prosperity is high priced money. He does
not know why it is so high priced, but it is a dan-
gerous factor which, if it lasts, will eventually affect
the prices of commodities, and it is already affecting
collections. When merchants must pay 7 per cent
at their bank there exists a dangerous condition.
Rates of Call Money.
To my mind the high interest rate of call money
is due to two causes. First, on account of our send-
ing out of the country some $500,000,000 of gold
during the past year. The second, the fact of the
furious buying of stocks, which has increased brokers'
loans 40 per cent this year. Everybody from the ele-
vator boy up is in the stock market with the idea of
getting rich quick. As the market has gone only
one way, everyone has made money, but we must
remember that what goes up must come down, but
not back to the old level of former prices.
At this time stock prices arc selling about 16 times
their earnings per share, while in past radical bull
movements it has been only 12 times. For stocks
to be really worth their present earnings, nearly all
of their earnings would have to be paid in dividends
leaving nothing for depreciation or replacements. A
long sustained bull market is practically impossible
in the face of abnormal high interest charges for
collateral loans.
Mr. Babson recently said an}' time stocks are pay-
ing between 4 and 5 per cent and money is worth
twice these figures on call it is no time to own
stocks. However, the stock craze will not always
continue in its recent mad career and there is sure to
be a readjustment. A higher level than in the past
undoubtedly will be established for them, but there is
no evidence that major fluctuations will not occur as
usual in such a case.
While stocks hold the public attention there are
many other things to be considered that are funda-
mental to prosperity.
Speaks of Bonds.
Following stocks, I should, perhaps, speak of bonds,
which have absorbed vast sums in the last several
years. Many do not know the reason why stocks,
being so high, bonds should be off a point or two
in price. The answer is simple: large corporations,
life insurance companies, banks, etc., usually invest
or keep their capital employed by buying bonds.
But with bonds having a safe top price of 6 per cent
interest, these people now send their money to New
York on call, thus obtaining 8 per cent or more.
With a readjustment of stock prices and money on
a normal basis you will see bonds immediately ad-
vance in price.
It may be of interest to state the consensus of
opinion is that the best class of bonds to purchase
are utilities. Not. however, the pyramided holding
companies which are so high in construction that one
who tries to analyze them becomes dizzy.
Electricity is a necessity, and its constant expansion
is due largely to the steadily increasing uses which
are being found for electric energy. There are at
least three thousand uses for electricity. This is a
cash business and its financing has such large dis-
BANG!—WE'RE OFF!
Over 1000 orders were filled the past month to
Professional Artist for this "Song." In every
State of U. S. A.
THE MAN THAT CATCHES ME MUST
HAVE THE GOOD HARD CASH
(Comic with Extra Verses)
Regular Trade Price—Retails at 35c
Write for Special Introductory Rates
(Unsold copies can be exchanged.)
J. S. UNGER MUSIC HOUSE, Publishers
Reading
.
.
.
Pennsylvania
AMJSIC PRINTERS
ENGRAVERS AND LITHOGRAPHERS
PRINT ANYTHING IN MUSIC
BY ANY PROCESS
SEND FOR QUOTATION AND SAMPLES
NO ORDER TOO SMALL TO RECEIVE ATTENTION
C. G. CONN, Ltd.
Elkhart, Ind.
THE LARGEST EXCLUSIVE MUSIC PRINTER V/EST OF NEW YORK AND
THE LARGEST ENGRAVING DEPARTMENT IN THE UNITED STATES.
ESTABLISHED 1876
REFERENCE ANY PUBLISHER
THE O T T O
CINCINNATI,
ZIMMERMAN
SON
CO.JNC
OHIO.
99%
interested prospects become customers
W* ¥ p £*
A »T ^
|j"»
PERFECTION BENCHES
are used by people who have good taste, appreciate fine things and know sound values.
De Luxe
Louis XV
Send for Catalogue
1514-20 Blue Island Ave.
Chicago
Enhanced content © 2008-2009 and presented by MBSI - The Musical Box Society International (www.mbsi.org) and the International Arcade Museum (www.arcade-museum.com).
All Rights Reserved. Digitized from the archives of the MBSI with support from NAMM - The International Music Products Association (www.namm.org).
Additional enhancement, optimization, and distribution by the International Arcade Museum. An extensive collection of Presto can be found online at http://www.arcade-museum.com/library/
PRESTO-TIMES
16
U N E M P L O Y E D MUSICIANS.
"What are we going to do with the 10,000 musi-
cians displaced by sound devices?" asked Senator
Couzens at a Senate hearing recently. "Put them to
digging ditches or send them back to the farm?"
How to take care of the man shoved out of his job
by a machine—a sound device for reproducing music
in theaters—is a problem the Senator would like to
solve.
The Growth
of Your Business in
Band and Orchestra Instruments
Depends on the Prestige of the
Manufacturer in Producing Meri-
torious Goods.
That Is Why an Agency for
the Products of
C. G. CONN, Ltd.
ELKHART, IND.
is an Assurance of Success in
the Band and Orchestra In-
strument Field.
The Successes of C. G. Conn,
Ltd., Are Due to the Perfect
Scientific Processes in Pro-
ducing Instruments of the
Highest Tonal Value.
DISCRIMINATING MUSICIANS
Appreciate Their Tone.
WORLD-FAMED BANDMASTERS
Proudly Proclaim Conn Instruments to
Be the Greatest Aids to the Best Band
Music.
SUCCESSFUL MUSIC DEALERS
Attribute Their Triumphs in Selling
Band and Orchestra Instruments to the
Potency of the Name and World-Known
Merits of the Great Line Made by
THE BUSINESS
OUTLOOK A TOPIC
In Talk of General Interest Delivered Before
the Lions Club, E. F. Lapham Gives Views
on Conditions, Causes and Possible
Developments for 1929.
E. F. Lapham, widely known to the music trade,
in which he spent a number of years, some time
since engaged in another form of business. But Mr.
Lapham expresses the belief that his experiences in
the music business equipped him in an admirable way
for his new activities and this fact he is free to voice
on any occasion. In a talk before the Lions Club in
Chicago recently Mr. Lapham gave interesting facts
from his experiences to illustrate his views on busi-
ness topics. Mr. Lapham said:
I was requested to say something to you on the
trend of things or what the outlook is for 1929. A
year ago I talked of 1928 before several organiza-
tions, saying anyone who did as well in 1928 as in
1927 could be satisfied as there would be about the
same volume of business done. The year started
poorly, but it more than made up for its early slow-
ness later on. The Central Trust Company in a sum-
mary recently stated as I had forecast, that the actual
facts were that the business done in 1928 was prac-
tically the same in volume as in 1927. So you see
prosperity marked time in 1928, unless an ex-
ception be made of the stock market.
Moody's Investment Service, one of our authorities,
says, referring to stocks: "This is only the fourth
period in the history of finance when the haphazard
buying of anything and everything showed a profit.
The former periods were from 1857 to 1864, 1877 to
1881, 1897 to 1901." They believe that the next few
years should present opportunities for even larger
profits. The future should be the best in the history
of the country." The only thing the matter at the
present time is inflation of financial credits or the
high cost of money.
Mr. Harry Wheeler says the only discordant note
in future prosperity is high priced money. He does
not know why it is so high priced, but it is a dan-
gerous factor which, if it lasts, will eventually affect
the prices of commodities, and it is already affecting
collections. When merchants must pay 7 per cent
at their bank there exists a dangerous condition.
Rates of Call Money.
To my mind the high interest rate of call money
is due to two causes. First, on account of our send-
ing out of the country some $500,000,000 of gold
during the past year. The second, the fact of the
furious buying of stocks, which has increased brokers'
loans 40 per cent this year. Everybody from the ele-
vator boy up is in the stock market with the idea of
getting rich quick. As the market has gone only
one way, everyone has made money, but we must
remember that what goes up must come down, but
not back to the old level of former prices.
At this time stock prices arc selling about 16 times
their earnings per share, while in past radical bull
movements it has been only 12 times. For stocks
to be really worth their present earnings, nearly all
of their earnings would have to be paid in dividends
leaving nothing for depreciation or replacements. A
long sustained bull market is practically impossible
in the face of abnormal high interest charges for
collateral loans.
Mr. Babson recently said an}' time stocks are pay-
ing between 4 and 5 per cent and money is worth
twice these figures on call it is no time to own
stocks. However, the stock craze will not always
continue in its recent mad career and there is sure to
be a readjustment. A higher level than in the past
undoubtedly will be established for them, but there is
no evidence that major fluctuations will not occur as
usual in such a case.
While stocks hold the public attention there are
many other things to be considered that are funda-
mental to prosperity.
Speaks of Bonds.
Following stocks, I should, perhaps, speak of bonds,
which have absorbed vast sums in the last several
years. Many do not know the reason why stocks,
being so high, bonds should be off a point or two
in price. The answer is simple: large corporations,
life insurance companies, banks, etc., usually invest
or keep their capital employed by buying bonds.
But with bonds having a safe top price of 6 per cent
interest, these people now send their money to New
York on call, thus obtaining 8 per cent or more.
With a readjustment of stock prices and money on
a normal basis you will see bonds immediately ad-
vance in price.
It may be of interest to state the consensus of
opinion is that the best class of bonds to purchase
are utilities. Not. however, the pyramided holding
companies which are so high in construction that one
who tries to analyze them becomes dizzy.
Electricity is a necessity, and its constant expansion
is due largely to the steadily increasing uses which
are being found for electric energy. There are at
least three thousand uses for electricity. This is a
cash business and its financing has such large dis-
BANG!—WE'RE OFF!
Over 1000 orders were filled the past month to
Professional Artist for this "Song." In every
State of U. S. A.
THE MAN THAT CATCHES ME MUST
HAVE THE GOOD HARD CASH
(Comic with Extra Verses)
Regular Trade Price—Retails at 35c
Write for Special Introductory Rates
(Unsold copies can be exchanged.)
J. S. UNGER MUSIC HOUSE, Publishers
Reading
.
.
.
Pennsylvania
AMJSIC PRINTERS
ENGRAVERS AND LITHOGRAPHERS
PRINT ANYTHING IN MUSIC
BY ANY PROCESS
SEND FOR QUOTATION AND SAMPLES
NO ORDER TOO SMALL TO RECEIVE ATTENTION
C. G. CONN, Ltd.
Elkhart, Ind.
THE LARGEST EXCLUSIVE MUSIC PRINTER V/EST OF NEW YORK AND
THE LARGEST ENGRAVING DEPARTMENT IN THE UNITED STATES.
ESTABLISHED 1876
REFERENCE ANY PUBLISHER
THE O T T O
CINCINNATI,
ZIMMERMAN
SON
CO.JNC
OHIO.
99%
interested prospects become customers
W* ¥ p £*
A »T ^
|j"»
PERFECTION BENCHES
are used by people who have good taste, appreciate fine things and know sound values.
De Luxe
Louis XV
Send for Catalogue
1514-20 Blue Island Ave.
Chicago
Enhanced content © 2008-2009 and presented by MBSI - The Musical Box Society International (www.mbsi.org) and the International Arcade Museum (www.arcade-museum.com).
All Rights Reserved. Digitized from the archives of the MBSI with support from NAMM - The International Music Products Association (www.namm.org).
Additional enhancement, optimization, and distribution by the International Arcade Museum. An extensive collection of Presto can be found online at http://www.arcade-museum.com/library/
Future scanning projects are planned by the International Arcade Museum Library (IAML).