Flight From Bonds to Stocks 211 
1925 amounted to $2,353,000,000, while stock is- 
sues during that period amounted to only $804,000,- 
000, exceeding slightly one-third of the total loaned. 
But during the first eight months of 1929, stock 
issues amounted to $4,794,000,000 or more than 
double the long- and short-term bond and note issues, 
which were only $2,360,000,000. 
Moreover, the bonds of 1929 had been affected 
with equity interests in one form or another, such as 
permission to convert into common stock, or to buy 
common stock at future dates at a definite price; 
also, in certain contracts, to receive interest pay- 
ments in common stock if desired. 
Stock Conversions of Funded Debt 
Along with this preponderance of the issues of 
equity securities during the two years 1928 and 
1929, came announcements by leading corporations 
that they would retire their redeemable funded debt 
through new stock issues. United States Steel led 
the way, followed by the Bethlehem Steel Corpora- 
tion, which announced, during September of 1929, 
its intention to take up about $90,000,000 long- 
term bonds callable at 105 to 107; while United 
States Steel had announced its decision to cancel 
$271,000,000 of long-term indebtedness redeemable 
before maturity at 110 and 1135. 
This movement of converting debts with a mort- 
gage lien into stocks contrasts sharply with the in- 
ability of the railroads during the first two years 
after the war, to sell stock in any considerable amount