New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-07-05
London Selling Our Bonds.

ing arranged.
London Selling Our Bonds.
Selling of bonds from London was
continued last week in rather large
volume. Since the British loan was
announced there has come to our mar
ket an unusual suDly Of underlying in
vestment issues bearing low rates OF
interest to furnish funds for purchase
of the new Az per cent obligations
10 be nut out by the British govern
ment. In the last two weeks prices
obtained for such obligations on the
Stock Exchange have dropped one and
two points or more, and have, in some
instances, lost practically all their i'm
provement since the first Of the year
There are offerings of issues such as
rarely come to the market, and consid-
cradle unsettlement has resulted IN
the bond business.
This is, however, time for impor-
tant payment Of dividends and inter
est bv corporations, and the bond
houses feel convinced that the supply
offered will be well absorbed Sales
If bonds on the Stock Exchange for
DELAYED delivery on some days amount
Cd 10 fifth or so of the total deal
ings This. of course, furnishes no
absolute guide to the amount OF Tor
eipn selling, as it is possible at a
time Of declining prices TO put out
short sales in this manner and cover
A profit later. Again good deal
Of the London selling is of securities
already on this side held here LOT
British owners that can be delivered
at once. The great proportion oil
business in bonds, too, Is done over
the counter and not on the moor OF
the exchange, end details OF such
transactions are not made puDllc' III
stocks there has apparently been com,
paratively little selling from ADfoau
and there has not been much done LOT
German account here recently
Favored Basis for City Bonds.
Lower bond prices here are part OF
the worldwide adjustment Of credlt 10
tLe bioher interest rate established by
tho British borrowing and retunding
oneration. Yet it is not admitted mere
that our securities must decline until
thev offer a WELD in the same proper
zion TO British government issues tnat
nrevailed in times Of peace. The Clty
Of New York's Az per cent loan was
nlaced on a basis more favorable than
hat obtained by Great Britain, con
trarv to established precedent The
SAC 100000 Of ffty-yesr corporate
stock went on an average yleId OF
4 437 per cent, and the S25,oOO'OOO Sc
rial issue maturing IN from one 70 M
teen years on an average OF 4'-'' PEI
cent. .n.-;,
,,ae excelient when it is considered
that the market for long term bonds
Nod been pretty well fattened out by
our trouble with Germany, and that
he effects of the British loan were
'st;n making themselves felt. Though
~ amount asked for was unusually
iarge il was covered more than three
tines nv applications, and a NUMBER
81 eenarate bids was fairly high under
the circumstances.
in stocks business was, for the most
,,.Yt ouiet. particularly in seasoned
Investment issues. The international
ist showed no such weakness as would
naturallv accompany any great IN
crease in foreign selling Speculative
movements did not make mucn mead
way. The approaching holiday eK-
nectation that Germany's note on tne
Iusitania would be received early TINS
week and the uncertainty IN invest
mont conditions, all worked 10 reduce
The amount OF trading. Attack ny
German submarine on treighter
Transporting contraband for the BRIT
isb Admiralty, with death 10 American
citizens. unsettled the market for only
a brief period, and even Saturday
news Of the shooting OF the head OF
the house Of J. p. Morgan Co. caused
only a temporary decline.
The great reserve holdings OF !eha-