Flight From Bonds to Stocks 211

1925 amounted to $2,353,000,000, while stock issues
 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 payments
 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 Corporation,
 which announced, during September of 1929,
its intention to take up about $90,000,000 longterm
 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 mortgage
 lien into stocks contrasts sharply with the inability
 of the railroads during the first two years
after the war, to sell stock in any considerable amount