The Birmingham age-herald., 1914-04-21
STRENGTHOF BOND MARKET |SFEATURE IN MONEY CIRCLES Large Issues so Easily Sold
 as to Cause General
 Surprise CONTRADICTION TO
 GENERAL CONDITION The City of New York Inspires the Greatest Confidence in Spite
 of Its Previous Heavy Indebtedness
nv HOLLAND.


 New York, April 20.-(Special )-Probably there will be enumerated among the great traditions telling of money market demon- strations in New York city the record which was made last week. That there should have been marketed in one city, partly in the open market where competi- tive bids were received and partly through underwriting contract, approximately 1eo.- 000.000 of bonds in a season commonly re- garded as one of general commercial and financial depression will be esteemed here after as one of the great achievements in American financing.
 A little over one-half of the securities thus marketed have behind them the credit that the s65. 10000 of bonds were sold at a premium aggregatng $942. 800 The bid ding indicated that capital regards high grade securities which are free from tax ation of all kinds, excepting for state pur- poses, as a good investment at the rate of 4 per cent trifle over. In order to market as high grade of security as the one-hundred-year 41s per cent bonds, be- hind which stand the credit and some of the assets of the New York Central Rail- road company, it has been determined that the offer should be accompanied with the statement that subscriptions at the rate of 95ss will be accepted, subscriptions of that kind representing an income value of $4. 70 per hundred.
 This test appears to demonstrate that the credit of New York city, notwith- standing it's enormous bonded debt, is bet ter than that of the New York Central Railroad company. But when it is taken into consideration that the tax gatherer for the federal government cannot levy any tax upon the income derived from New York city bonds then it would seem fair to estimate the credit of the New York Central Railroad company as ap- proximately as high as that of New York city.
 The New York city bonds, of which $65- 100000 were sold last week. represent an income basis of s4.1S per hundred in com parison with the s4.70 per cent which is to be the income basis for those who buy New York Central bonds.
 One Active Business
 Whatever may be said about business conditions th"re is nothing but encourage rrent respecting the character of business which is repre- scented by high-grade securi- ties. municipal, state or railroad That is certainly flourishing. If in other fields
 
 preach of capital to the markets as large as the financing of last week shows these influences to have been in the high gra de bond market then this country would be occupied with a business boom perhaps unprecedented, both absolutely and rel atively.
 The state of New York and the city of New York have within a short time ab- sorbed about $125,000O O0o- Nearly all of the funds obtained by the sale of the state and the municipal bonds are to be utilized in payment of public improvement The $25,000,000 of New York Central bonds, which the management of the un- derwriting syndicate is now offering to the public, represent imperative need for re- funding or refinancing. This refunding, 1t IS true, to a considerable extent takes up obligations which the railroad company issued in order to obtain funds with which to make improvements, perfect plants and meet the expenses obtained by electri- flying the new Grand Central terminal and the erection of new building One of the remarks most commonly heard fin the financial district last week was this The heavy over-subscription to the offering of New York city bonds and a recent heavy over-subscription to the offering of New York state bonds indicate that capital Is now eagerly seeking in- vestment of this kind while withholding in- vestment in private undertakings Yet the presumed success of the offering of $25,-