The Washington times., 1910-08-21

NEW YORK, Aug 2l-From The
banking point Of view. q somewhat bet
ter tendency in the bond market was
regarded as the most favorable develop
ment of Wall Streets business week
Il is not TO be inferred from this that
the investment market is booming. or
that an active demand for bonds has
sprung up among institutions and per
sonaI investors, for such Is not the
case bnt contrasted with the utter staS-
nation OF recent months there developed
an inquiry coupled with some little buy
inS. the outcome Of which IS awaited
with much interest TO determine Whetn-
ct or not II marks a definite turning OF
the tide. which has been running against
the investment market for a lorS time
past In The course Of this LONG interval
OF staEnatiOn, aud generally falling
prices for investment securities. there
have been one or two hard spots in the
market. when prices rallied but these
have been of brief duration. and with
the failure Of the July investment de-
mand 20 materialize, bonds resumed
their declines. which have continued
practically I'D 10 the present week e11-
cept in the case Of speculative issues
Whether the present movement IS deS-
tined TO grow into Il healthy bond de-
mand. IN the course Of which railway
and Industrial corporations can again
md a market for new issues Of which
Il is said several millions are awaiting
sale. or whether this is but another tenn
porary hard spot in the market. re-
mains 10 be seen. Rsnkers ana bond
dealers generally are quite agreed that
II is likely TO he several months. even
under the most favorable circumstance.
before the market viii be II shape 70
absorb many new securities SO FAR as
dealers are concerned, nothing could
prove more distastefuI than an emission
Of new bonds until some OF the old is
sues have beer worked OF In fact,
they So that il Is idle TO talk OF new
issues row. and their attention is cen
tered entirely upon the prospect Of sell
ing some Of the securities which they
have on hand, or which the banks,
bankers and trust companies, took over
during the period Of LIQUIDATION
A Successful Bond Sale.
The improved tendency Of investments I
during the week is directly traceabIe 10 (
Che marketing OF an UnsOld portion OF {,
New York state I per cent % year
tnat or July II, last, the fail !
ure Of New York State 10 secure bids /
for the fun amount Of this issue chilled i
the security markets 10 the marrow I
out Of 81, 10000 bonds, offered for sub /
scription. only SS,75S,O00 were sold. at /
an average price Of Ioo70- Much was ]
made Of the fact that this was the first \
failure in a sale OF New York state Sc
-urities since before the civil war, and, !
as a matter Of fact, it has since de
veloped that there is no existing record
that a New York State bond issue has
ever before been unsuccessful, from the
7avs when the State raised money !
through lotteries, Immediately after the
war down TO the present
ssue. However, the feature Of the week
5Oes not deal with failare, but with the
successful disposal Of the unsold por-
ion Of these bonds, $1,000 at 101-77.
As against total bids Of $. $500 at par,
,r better, for the original 81, 10000, the
small Offering Of the week was covered
1y subscriptions more than ten times
over. the aggregate bids amounting TO
upwards of S25,co0,0O0-
OF course, the price Of 1O1-7T for
, fftv-year New York / per cent bond
: very low indeed, and particularly
IN when the tax exempt provisions.
md the character Of the security, are
but Wall Street paid less
,ttentio, to that than to the fact
hat the issue. which failed Of fun Sub
scriDion but a month ago, was so
heavily oversubscribed on the offer
ne o. the unsOld portion Naturally
he matter Of price did enter into the
of bankers and bond
dealers. when they discussed the
transaction, ard from the low figure
some Of them argued that too much
significance had been attached TO the
,eavv oversuDs cription- They point
ID out that a sale of the highest
Grade tax exempt security in the
state. at close to a I per cent basis,
md at A price (10I.7O under that at
which the issue had been selling IN
he market (102), did not Indicate a
,rOuouuced change IN investment con-
iftions. or hold out the promise OF
.ctivitv. or OF much Improvement IN
rice in high grade railway issues
7ut despite this INSPIRING view the
ra7sactfon unduestionably Influenced
ONE Improvement in the bond mar
ret and as an evidence of this the
ale was reported during the week :