The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-10-14
SLOW SALE FOR BONDS
Market Has Suffered a Slump
Everywhere

In view of the large amount of trouble
which the city of Topeka has encountered
in finding a purchaser for it's Santa Fe
shop bonds. it is consoling to note that
municipal bonds throughout the entire
country suffered similar slump. Munic-
ipal bonds are hard to sell, and municipal
bonds issued for railway aid are consid-
cred especially undesira BILE by bond buy
erS-
While the Santa Fe land bonds are not.
they are thus classed by bond buyers
Those who familiar with the situation
state that eastern bond buyers have found
by experience that railway aid bonds are
more risky than any other class of bonds.
Railway aid bonds. voted to asslsr a
paper railway are frequently defaulted.
The bond buyers do not make a proper
distinction between the Santa Fe land
bonds eand such railway aid bonds, be-
cause they do not understand the situa-
tion-
Several letters have been received from
bond buyers stating that they believe the
option on them for a few weeks They
want to wait till the financial situation
eases up little
wait for two months, and the money
market ma la Wi, will undoubtedly ease up: Then
ern bond buyer. But the trouble is that
the city, wants the money now II IS
paying 6 per cent. interest on the tempo
within few weeks. The bonds should be
sold before any more money is paid out
The Municipal journal and Engineer.
one of the leading municipal magazines of
=
the bond situation as follows
Several of the large cities have been
dlSpoSing of their bonds a declining
scale since the first of January of this
year: Montreal, Canada, had a hard time
to dispose of it's bonds along the first of
the year. Philadelphia received a black
eye when she offered her water improve
ment bonds for sale, receiving. only one
afterwards being obliged to sell them at
as slight a premium as 31s per cent. New
York city has not escaped the general
slump among the larger cities and shows
a decided falling off in the sale of her
municipals. far as price is concerned
sale of s., 900, 900 of 31a per cents was the
lowest on record for local consolidated
stock. the basis being 1856 per cent
"A well known Wall street broker in
municipals is reported as saying, that the
activity of speculation is. in a measure
responsible for the downward tendency
observed in Investment securities. Many
customers are out of the bond market be-
cause their funds are tied up in specula-
tive pools. Nevertheless he believes that
there will be decided change for the bet
ter in the course of a few months, be-
cause these parties are sure to win out in
their schemes and bonds are sure to be
sold at much larger profit before long.
been a depression of the municipal bond
sales in the leading money centers, the
price of bond sales in the smaller cities
and even in the towns and villages has
been affected by the purely local condi-
tions which have existed only in cities ike
New York and Philadelphia.
Notwithstanding there has been a de-
pressed market as to price paid the ag-
gregate amount continues to grow and
the totals at the end of this year, unless
there comes an unexpected slump, will be
the greatest ever known