The Washington herald., 1915-10-13
BONDS ARE SOLD
HIGHVALUES
Flood of Investment Money
Turns to Them After
Years of Waiting.
DEMAND IS STILL GOOD
Investors Oversubscribe to $4,0OO,0OO
Hooking Valley Notes in One
Hour-Futrre Looks Good.

New York, Oct. 1.-THE unusual spec
tacle of a heavy demand for bonds at
advancing prices at the same time the
stock ma rket is rising is being witnessed
by investment bankers for the first time
in many years notwithstanding the
huge speculation in war stocks, the de-
mand for bonds, according to authori-
tative investment bankers. is now the
greatest in eight years.
Heavy purchases of standard rail-
roads and Industrial bonds are attribut
ed by bankers to the flood of invest
ment money into securities following the
bursting OF the dam that has been hold
ing back investment funds for the last
five to six years. Owing 70 the unrest
growing out Of the governmental cru
sade against corporations in general in
recent years. investors have been afraid
to put thcir savings to work and this
capital has been accommodating rapidly.
Much of the funds were Temporal rily in
vested In short term notes by people who
desired to keep their money employed,
hat at tn" same time wanted il in some
thing that would mature at a time when
they expected TO get bonds cheap and
something that could be sold without
much depreciation in principal.
Bought Short-term Notes.
The supply of idle wealth that piled
up III DdlhS NdS lHNtSltu III SNORT term
notes, as the banks had so much money
that they could not find employment
for 1t.
Quoted market values for bonds began
to lOoH very attractive during the early
summer. when British investors were
throwing over huge blocks of American
bonds to raise fund; with which to sub
scribe to the ~, per cent war loan. This
liquidation enabled beth institutional
and individual Investors to obtain large
blocks of bonds which, in ordinary
times they would not have been able
10 get except at sharp advances in price.
The purchasers We're also in the unique
position of having the bonds thrust on
th"m. 1t would have also taken weeks
to have acquired in small amounts
blocks of from $4,000 to SloOOco
The quiet absorption of the foreign Of
frrinGs without any sharp drop in prices
im7rt sseG investors. who began to un-
load the shOrt-tcrm notes preparatory
10 investing in h!gl-grade bonds. Owing
l. ,he record d. posts held by the banks
and tn" desire to keep them employed.
tho sellers Of shor;-tcrm notes found
surprisingly god market for their offer
inEs the banks being ready purchasers.
Rise Rapidly in Prices.
As the demand for bonds progressed
IN" supplies began diminishing and with
'""ar to .:dv:.nC". the gains running from
two to seven points. aud best illustrated
lay Baltimore and ohio Pittsburgh,
lake Erie and West Virginia division
bonds. which a few cekS ago We're SELL
ing at - II anl ar" now quoted at So 10;
N"" York TrlrrtOn" 41-2s. which rose
from 922-i to g. and southern Pacific
refunGing & from s. &-S to 81 l-2 Others
have risen in proportion.
Notwithstanding the rise in prices in
NrStmrnt birkrrs report a continuation
Of the demand which is fully reflected
Icy the qu:ckness with which new issues
arr being absorbed In the case of the
&l""'."H Hooking Valley notes offered
last week by the National City Bank anl
Kuhn. Loeb & Co. tn" purchase had not
been known moro than an hour when
tn issue had been subscribed about three
times.
The S2n"on.rn Brnoklvn Rapid Transit
:, per cent notes offered last week were
also "vcrSrhs"rh,.d i'll few hours.
Whereas investment firms found ditf-
rultv months ago in placing now Offer
siuuS. they are now busy explaining to
,h"nts why tIi,v did rot haA enough
81 the offer TO go around.
AlthuuCh forCicn liquidation has broken
out afresh th.. offerings are now expect
II to com" In sufficient volume to offset
tne demand. 80 that n continuation or
tho strong bond market is expected.