Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-11-19
t5SSIP OF THE STREET
CITY BOND BIDS
CAUSE SURPRISE
Great Demand and Big Premium
Offer Interests Local Finan-
cial Men

issues. One was the $1,000, 900 Az per
cent So-year bonds of the City Of Phia-
delphia, and the other the 100000 900
issue OF S-yehr per cent gold notes of
the Liggett & Myers Tobacco Company.
The successful bidders for the City OF
Philadelphia bonds was the Guaranty
trust Company of New York, whose bid
OF Slo2,s5s or s102s.5s for each $1,000
BOND, was the highest, although only a
small fraction over the combined bid Of
VIM. A. Read & Company and Kuhn
Loeb & Company, of New York
There was considerable surprise IN
Investment circles that a local concern
did not secure these bonds, and many
are of the opinion that the price paid is
excessive In consideration Of the fact
that Liberty ANS bring only es. 1t was
said that the tax free feature of the
CITY bonds was the consideration which
made the high price, but as that feature
applies to this State only 1t would not
account for the difference.
As to the Liggett & Myers issue,
which was put out by the National City
Company and the Guaranty Trust Com
pany of New York, the books were
opened at 10 o'clock yesterday morning
and closed at 1890 with q large over
subscription. These notes were sold at
9S and interest to yield about 6A per
cent. II was said that the subscription
In this city alone was considerably over
the amount of the whole issue.
There was no surprise manifested
at the rapid absorption of these notes
as the security is more than ample, and
the high yield is very tempting to
investors
In speaking Of the high price paid for
the philadelphia city bonds, local
banker said it was sign of the times
mat practically all the high bids came
from New York houses which are be-
coming very aggressive In the local
market, and he remarked he was glad
to see 1t and he hoped It would have
the effect Of arousing some of the lead
ing investment houses TO brace UP, and
retain the local business even If they
are not aggressive enough to go after
outside business.
The general impression is that large
amount of money is lying uninvested in
this community. and that the encour-
agefRent which banking houses are
meeting in recent hotations will bring
out number of very attractive long
term issues. as It is believed by many
that the time has come for this class of
investment.
Bond houses report that during the
past week many losses were sustained
in the bond market. but the large num-
Der, of gains more than offset the de-
ciines. Railroad bonds were particular
ly active and strong around the week.
end In some. Instances the gains were
from one TO ten points as compared with
maj ngnres of the previous week. United
states Government bonds were some
what lower particularly the As
Foreign government issues were gen.
orally higher.
The stock market yesterday was firm
but inactive.
Ofncers OF member banks in the Third
Federal Reserve District are much in
terested in the selection of directors of
the Federal Reserve Bank of Philadel-
phia to succeed. in Glass A, William II,
Peck, OF Scranton. who on account of q
rearrangement of members according
to new capital qualification is not
eligible for reelection, and in Glass B,
to MI the vacancy caused by the recent
death of Senator Gaunt. of New Jersey.
1t is desired that broad-minded, pub
lic-sDirited men of experience should be
selected, In order that the high standing
OF the members of the board already
established may be maintained. Among
the several candidates placed in nomi-
nation, those Of Montgomery Evans
president Of the Norristown Trust Com
pany, of Norristown. Ra.. and Charles
X. Haddon, vice president of the Victor
Talking Machine Company, are men,
toned by interested bankers as being
admirable selections for the responsible
positions In question. Mr.. Evans is a
practicing attorney of Norristown and
ex-president of the Pennsylvania Bank
ers Association and favorably known
throughout the State.
Mr.. Haddon is vice president and the
active executive manager of the Victor
Talking Machine Company, of Camden
business man of wide experience
which. II Is pointed out, makes him well
equj-ped for such a responsible service
He also the only candidate from New
Jersey, and the late Senator Gaunt
whore place is to be filed, was the only
representative On the, board from New
Jersey.
The two most important subjects at
present under discussion in the financial
district are the coming labor problem
and the money situation. As far as the
letter is concerned, while many expect
money will be easier in the near future
there are practically none who expect
any change in the safeguards which
have been thrown around the money
market to prevent unwse speculation. A
banker called attention yesterday to n
not generally known fact, namely, that
the control of credits by the Money Com
mittee, about which there has been SO
much noise, had not produced any
appreciable shrinkage in the voiumn of
business transacted on the New York
stock Exchange, based on a general
average of sales for several days before
: the Money Committee and the bonds be-
came active. This banker said that the
rule increasing the percentage of
margins had resulted In the transaction
of much better class of business.
When asked IL he believed the present
restrictions on stock exchange loans
would likely be kept ir sorce much
longer, now that peace terms were in
sight, a certain broker said that he per-
sonally was acquainted with some of the
members of the Money Committee and
he understood they were opposed to any
let-up at the present time. One OF the
reasons they give. he said. is the com
ing payment, this week. on the Fourth
Liberty Loan. This payment calls for
20 per cent. of the loan to be paid into
the Treasury. Judging by former ex-
perience, he said. instead of the, N,400,-
o00, 900 which this payment represents
the probability Is that the actual
ar. cunt which will be paid in will ex-
ceed $4,000, 900. 900, and 1t must be
borne In mind that this amount will be
withdrawn from banks and commercial
channels to be turned over to the Gov
eminent. There is a probability that the
nearness of the holiday season and the
closing down of certain war industries
may interfere somewhat with an over
payment, but he remarked that he did
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