The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-22

more than turned the corner and Ia al
ready we'll on the road to substantial re-
covery.
The bond market has been attracting a
lot of attention, particularly since the
first OF the year. The advance began in
an unobtrusive way as far back as last
fall But in the last two weeks the gain
has been the centre Of interest In Wall
Street.
The income tax exemption in State and
municipal bonds has produced demand
that has stripped dealers shelves of them.
In the last week the new attitude at
Washington toward big business has
added renewed confidence and buying In
all high class bonds.
The abundance OF money and the in
crcasing ease of money rates all over the
world have been directly responsible for
the late upturn in the bond market.
Much of the S2b0.000,O00 paid out In In
terest and dividends at the first OF the
year has been reinvested in bonds and
$40, 600. 900 more to be paid out on Feb
ruary l Is expected to find Its way back
into the security market.
High Bid Surprises street.
The high bid of 106.017 by the Kuhn,
Loeb William A. Read syndicate was "A
distinct surprise. A week ago the syndi-
cate, headed by Harris Forbes & Co. and
including the Guaranty Trust Company
and the National City Bank was planning
on bid of 104ig to 105 Vigorous bid
ding up of the price of the bonds when
issued" on the curb in the last several
days. closing on Tuesday at the high price
Of 1868, changed these plans completely.
The Harris, Forbes syndicate yesterday
bid l05.531. or a little more than y point
below the Kuhn. Loeb-Read bid.
NIL kp0ply interested VghAn
1t was announced that the Kuhn. Loeb
Read syndicate was putting in bid
Ii was an unexpected bidder on the "all
or nome basis when Its bid was
! seen to be the highest the strategy of
its move was recognized Immediately and
its farsightedness was applauded
Wall Street had accepted the bid OF
1O5is as the reasonable figure TO win
the issue. The Kuhn. Loeb Read syn
dictate deliberately added more than \
of per cent. to this figure.
1t was recognized that the demand from
investors for the state bonds had be-
come so great that. whether obtained at a
price OF l05 or LOG. 1t was practically
certain that a price at least one point In
advance was to be obtained In reselling
The first result. therefore. Of the higher
price bid was that the bankers got the
issue The successful bankers will not
announce the price OF public Offering. 1,
Is understood, until they have been for
mally notified OF the award.
II Is fully expected In Wall Street
that the bonds will not be offered At les.
than one point In advance OF the syn
dictate bid price This will mean n point
profit TO the two banking houses Of prac-
tically 100000. The future course OF
prices OF these bonds appears to be In
| dictated by the aggressive activity IN hem
yesterday on the curb
Advances In 'when Issued" Sales,
In the sales when issued" bonds to
the value OF sl.150. 900 were traded in al
prices that advanc, from 1861 to 1919
closing At 107ts.l The big rise was caused
by a scurry OF short covering on tho curl
| as soon AZ wind OF the high prices thai
| were to be bid at the sale went abroad
The covering was largely by Stock Ex'
change firms that had sold the bonds ehort
last week Heavy losses were incurred by
| some Of these short traders. who wert
| forced TO cover at prices one or two pointt
higher than the prices AT which they had
sold the bonds a week or more ago.
The second result as seen by f1nancia
leaders yesterday in the bid and the sale
OF a price IS to a y above what market
| conditions demanded Is that the entire
bond and stock market will be stimulated
| The credit of the State has been demon
strated also.
1t Ia expected that yesterdays test o.
| the market will encourage important cor
poration financing In the near future
whose delay has accumulated business In
| activity.
Bond men recalled yesterday that II
| 1904 a deadlock In the security marke
similar in many respects to that OF las
year was not broken until an issue o.
$37, 200, 900 Of New York city 3ls per cent
bonds had been taken with big success
| Tl. market thai time In
state of plethora much more pronounced
than now. with call money down to 1 ant
IA per cent.
Efforts to break the deadlock In tn,
security market Of last year began II
April with tho issue OF $30.000,000 st
Paul IA per cent. bonds. Kuhn. Loeb 4
Co. offered them ut the unusually low
price Of 99ia In an effort TO stir invest
ment interest in high class securities, TIL
market was absolutely stagnant. The NJ
tractive offer met with half hearted
Response and only two-thirds OF the issu
could be disposed OF at the first sale.
month later the s45. 0O0,0 900 OF New
York city Az per cent bonds were issue,
ut an average price OF 100,i59. This wa
the lowest price ever received for a cit
issue. but under the then market condi
tons the sale was regarded as satisfac
tory.
The sale OF $40. 900, 900 marlborough
per cent bonds on October was the onl
os',er big bond sale since then until yes
terday.
The decided change is most potent
illustrated I'm comparative prices. Tn
St. Paul bonds which were sold last Apr
at oaia, closed yesterday at 1925. Ne,
York city A., of 1860, which sold las
April at 97a.. sold al l0l !, at the clos
yesterday. All State and municipal bond
have been booming