The herald., 1897-12-25
OFFICE OF THE HERALD.
Los Angeles, Dec. "a, 1897.


fsring upon the market for municipal se-
curities, Bradstreots has the following to
say:
But for the fact thLt several powerful
banking interests were known to be In the
field AZ bidders for the issue of $e.2as,0Oo
Of New York city 81 per cent bonds. offers
for which were opened by the comptroller
on last Tuesday, 1t Is probable that the ag-
gregate applications would have reached
very large figures. As 1t was the total
amount OF bids submitted was S2l. l.5S9. 900.
the two principal offers, which were for all
or none of the issue, being from houses
which stand in the front rank Of contem-
porary Wall-street interests. knowledge
that such people were likely to bid had
naturally the effect Of keeping the smaller
bidders. whose applications are for lin
tied amounts Of such issues, out Of the
field and also checked the bidding from
savings banks or other investing corpora
lions. though 1t might also be said that
the high prices recently regained by New
York municipal securities also tended to
seduce the demand from such quarters. As
It turned out, however, the highest bid,
which is also record for American mu-
'nicipal securities bearing only 81 per cent
interest, was from local insurance In
stitution, being for $4,000 of the new dock
bonds at 10S.47. The other bids ranged
from 1885 to 107.677 for the whole or vari-
GUS parts Of the Issue.
Some interest attached to the sale Of the
present issue. since 1t was the last that
win be made by the present municipality
prior to the consolidation of the cities
forming the so-called Greater New York
At the last important sale of bonds by the
city, which occurred in June last, the
amount offered being sl0,O5S, 900. there were
bids to the total of $50. 355. 900, and the issue
was secured by the syndicate composed
of Messrs. Kuhn. Loeb & Co. and Ver-
miyea & Co. of this city, whose bid was
105.912. At the beginning of the present
month the long-term city SlA per cent
bonds. maturing in 1922. were quoted at
around 107 and upward. and 1t is stated that
the success of the former syndicate In SELL
ing their holdings to permanent investors
was an encouragement for the formation
Of similar combinations to bid in the pres
ent instance. 1t was calculated that the
price paid In June by the successful bid
ders nxed the interest basis Of the city
at 31S per cent. but 1t will be seen that
the bids made this week reduce the in
come return upon these securities to a con-
siderable extent further.
1t Is quite customary for dealers In bonds
and bankers generally to lay in a stock of
high-grade securities at this period in
preparation for the demand due to the re-
investment of interest and dividends paid
at the beginning of January. In this case,
however, the purchasing power In the mar
ket is too large to be explained by any
such circumstances II would seem that
the enormous accumulations of idle money
reflected by the balances of the New York
banks and those in other cities are find
Ing an outlet In this way and that the
demand Is Of such character as to carry
prices. and those for municipal bonds In
particular. to the highest figures on rec
ord for securities OF that class. 1t Is to
be noted before leaving the subject that
fhis movement has been a general one. 1t
has affected the prices. for securities of
municipalities in high credit all over the
country, and a further circumstances of q
notable character In that the selling by
European investors. who were attracted
by the extremely high prices, though
large In volume. has been no check what
ever to the buying on the steady appre-
citation In values. On the contrary, the
opinion Of experts Is that the foreigners
have simply supplied the market with
material when the offerings of seasoned
securities from domestic sources was be-
coming exhausted.
The San Francisco News Letter is never
happier than when engaged in puncturing
the untiring efforts Of the schemers who
try to make money out Of floating illegiti-
mate schemes Here is the latest out
burst of our contemporary. The hints in
the article may put some people on their
guard and even protect the Reubens Of the
districts adjacent"
Postal cards signed "Giles Otis Pearce,"
hailing from Yuma. Ariz., have been re-
ceived by people In this city. which are
gems In their way. G. o. p. however, Is
mistaken II he thinks this is the kind of
q jay town with money to throw at the
birds, where work even as fine drawn as
his IN can win the shekels. There is a bet
ter chance to find the Reuben family he
IL In search Of down Los Angeles way or
In the one-lung districts adjacent. They
are scarce commodity up here. In any
event there can't be much of the capital
stock Of the Rio Colorado Gold Extraction
Company knocking around In this quarter,
Judging from the apparent youth of a
property OF such vast pretensions, al
though fta shaft has onIv not dou,, cov,a
rs feet. Possibly, when that level, now
drifting on the vein (which, by the way,
1t is pleasant to hear is In place), gets
out to that 2200 feet mark there may be
some stock available for the acceptance
of the open-handed purchasing order of
this enthusiast of the Chocolate Mountain
bonanza. The bloom Of youth is against
the dicker just at present, g, o. p. al
though It would be safe to bet your top
gallant eyebrows, and all the running
gear Of your main royal truck, that those
only likely to be rs per cent free gold"
II this was not mining metropolis. no
doubt this nicely-put tale Of bonanza
wealth would interest q great many peo-
pie with money, who are never happier
than when they are mixing 1t with some
Great old Possibility of the kind outlined
on ths cards headed stock Wanted" now
N circulation here.
Here II another warning from the same
source, "Ten Million Tons OF Ore" When
. reputable paper like the Mining journal
e9 London publishes q column Of sensa-
tion matter heralding the Notation Of a
company which claims to have ten million
to- tons Of sold ore available for extraction
py simple auarrytpg. some excuse can be
O6nf0d fOR the ai11v-hi11va In y,nnro ahan,,ro