The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-20
ANSTEY TELLS OF BOND SPEC
HAD PLENTY or coon REA.
SONS AND NOT ENOUGH MARGIN.
Held Much More Than ~. .OOO. .OOO Worth
Of 4 l.4s when the Banks Began to
Call Loans on Them Banks Have the
ROnds, but the Reasons Rema In Good.

OI = Is4S Wneu Vne DoOkS BeBaU 10
Cali Loans on Them--Banks Have the
Ronds. but the Reasons Remain Good.
When brokers set out yesterday to find
who the bond dealer was who had got in
they learned that he was H. Lee Anstey.
a specialist in municipal bonds with desk
room with the Stock Exchange house
of Simons 4 Emanuel in the Hanover
National Bank building. He has been
a student of New York city bonds for
many years. he said yesterday. and was
so fully convinced of the worth of the
| 4i+s that he acquired on a thin margin
bonds representing a sum largely in ex
cess OF SS.OOOOO0 1t was said in some
Of the bond houses that Mr.. Anstey's
commitments amounted to almost $l5.-
OOO. 900.
Mr.. Anstey's equity in these bonds was
wiped out in the point and a half decline
Of Tuesday. He had had no trouble
in inducing banks to take the as on
a very narrow margin, and so ready
were most Of them to fall in with his
ideas that he extended himself more
than any one Of his bankers knew at
the moment. When they ascertained
how deeply he was in they began to call
his loans. The swift decline in the mar
ket value Of the 4i.s was laid by brokers
partly to the sale of the first OF the Anstev
bonds and partly to the conviction in
Wall Street that the artificial market
provided for in Senator Grady's banking
bills wouldn't he SO very effectual after
all. Mr.. Anstey said yesterday that he
IrI Iaft Thn,y oil Iolon oI
to the bankers who had lent him money,
he said.
Mr.. Anstey told yesterday why it was
that he had put so much faith in the as.
He had figured out their potential value
from what city bonds had done in other
years when the general conditions in
the bond business were about what they
are now.
He spoke OF the cheapness OF money
of the speed with which these bonds were
pick ed UP at the time of issue and of the
dulness of the stock market. In other
years when these conditions had pre-.
vailed municipal bonds had gone up
swiftly, and he believed that this yeai
they would react in the same way.
Another feature Of present conditions
which made the market look good he said
was the Grady bills Nevertheless he wa.
not inclined to believe with some bono
dealers that the Grady bills. if all of then
had Passed would have boosted the prlc,
very greatly.
Mr. Anstev IVES asked about the rumol
which has been current in Wall Stree
that certai bond dealers, specialists il
State and city securities. had prompte.
| ho Hills n. ynnka n artiGrtal plark al f,,,
their favorite investments.
Il don't believe it," said Glr. Anstey
Il never heard Of any OF them having any
thing to do with the Senator'S bills. Il
has seemed to me that Senator Grad,
. believed them to be popular measure.
He was defeated for the Presidency pre-
TEN of the Senate. you remember, and i
seemed probable to me that he though
measures Of this sort would commend hin
to his constituency in New York"
, Mr.. Anstey said that rs for himself
he did not even have prior knowledge
that the bills were to he introduced
r Mr.. Anstey had gone as far back a,
1884 in studying out the probable marke
for New York city bonds. He said ir
that year there was 'measness in the stool
market. with plenty Of money lying arounc
!, awaiting investment There had beer
a couple of half panics. as he called them
and investors were looking for safe
way Of laying up that money at interest
City bonds scared
Again in 1882 when Comptroller Myers
now head OF Consolidated Stock ES
change brokerage house. put out an issu,
of bonds under conditions similar TO thos'
Of 1911, but at lower rate of interest
buyers bought them freely and they wen
I up rapidly. He spoke of otner instance,
4 also as being indications OF what the mar
ket this week ought to have done.
: Mr.. Anstey didn't want TO say whethe
a or not he was playing lone hand in hi
city bond ventures. There was a rspor
in Wall Street yesterday that a hrokerag
house had become oversupplied viii
as and it was conjectured that MI
S Anstey had acted as it, agent