The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-18
New York's Big Debt Doesn't
Raise Interest Rate.
More Interest Should Be Paid
on Government Bonds.
WOULD NOT SELL At PAR
III Small Interest Was Only Re-
turn for Investor.
Schwab's Forecast Proved True
by Business StagnatiOn.

New York, May 1S-Within four
weeks the public will have been ask
ed TO absorb ninety one millions in the
bonds of New York city and of New
York state. Sixty-five millions of this
amount, these being the Il per cent
bonds issued b. New York city, have
been purchased at an average price
which, if UNCHANGED hereafter. will
make the income basis of these bonds
about four and. twenty one hundreGths.
A sufficient time has passed since this
offering was made to form an accurate
Judgment as to whether or not the test
has been satisfactory. Although at
first there seemed to be some DISPOSE
ton to surmise that the test showed
that the credit of New York city is not
so good it was at the time, year
ago, of large sale of city bonds, new
ertheless the later Judgment is that
the sale of these bonds makes it clear
that, Notwithstanding the enormity of
the debt of New York city, it's credit
still remains very high. To have mar
keted an issue of -sixty-fiVe millions of
bonds bearing "a per cent interest at
average price above par not only DEM
onstrates the credit of New York, but
the readiness of capital to make in
vestment in securities of this kind.
The very fact that the issue was over
subscribed four times is good proof of
this disposition.
There were some offerings which, by
accident, the city did not receive. One
private bankers having 1InpO1-
tant international associations pre-
pared bid for one million of these
bonds at a price which would certainly
have caused the city to accept the bid.
A messenger of this firm was sent to
a bank to secure 4 certified check for
two hundred thousand dollars, With
which to accompany the bid When
this messenger reached the comptrol-
ler's office he found that some mistake
had been made at the bank, for he had
received not the certified check for
which he had asked, but another. He
fastened back to the bank and was
handed the certified check: but when
ne returned to the comptroller's office
the bids were closed and he was too
Late.
s 1t is the presumption that a consid-
cradle part of these New York city
bonds will ultimately find their way
across the sea. No municipal or state
security of the United States has ever
gained the favor in France which the
bonds of New York city have been
able to get.
AT the end of the first week of June
the state of New 1rk will sell at pub
lie competition Twenty-Five million,
nine hundred and fifty thousand dol
lars of 4 per cent gold bonds. The
presumption is that the comptroller of
New York state has received informal,
and yet what he must regard as suffi-
cient, assurance that this large offer
ing of state bonds will be easily alb
sorbed. If they are, then city and
state of New York will have marketed
in little less than a month ninety
one millions of bonds, some bearing 4
per cent and some 4 Il per cent. The
ease with which this latest Offering
will be marketed and the prices which
will be obtained. probably about par
will serve to illustrate the strength of
money market conditions and the dis
position of capital to make investment
in securities which yield about per
cent. In all probability the wage earn
ers of New York will become Indirect
ly the owners of these state bonds,
since it is presumed that the savings
banks will absorb the greater part of
them.
The Governments Credit
In recent address delivered by Jos
eph T. Talbert, vice president of the
National City bank, and in several ad-
dresses which have been of late deliv-
cred under the auspices of the Ma
tional Citizens league, the statement
has been made that the present mar
ket quotations for the bonds of the