New-York tribune., 1920-03-13
American Piano
J.K.Rice ,Jr.&CO.
Phones 1000 to 40l0 John. 36 Wall ST., N. Y.
Large Buyers
Again Active
In Bond Market
Savings Banks and Life In
surance Companies Pur-
chasing Investment Secur-
tiles After Long Period

The savings banks and life insur-
ance companies, normally the largest
buyers of bonds, after having been out
of the investment market for several
years, during which they were paying
off their subscriptions on Liberty bonds
and Victory notes, were once more ac-
lively in the market again yesterday.
In the tremendous open market in
Liberty bonds in recent weeks, the in
stltutions have been the principal buy
ers and individuals and corporations
the main sellers. The selling pressure
brought these prime government obli-
cations down to a level at which they
Welded moro than 5A per cent, and the
slump in market values would have
been much more drastic if it had not
been for the institutional buying.
Buying Victories
Although the bulk of the funds that
The insurance companies and savings
banks have poured into the investment
market recently has gone into Victory
notes and Liberty bonds, the insttu-
tons have also been buying other Sc
curities, though to lesser degree. The
second most favored type of bonds has
been the underlying railroad bond, and,
since the passage of the Esch- -Cummins
bill, there has been increased buying
along this direction. The institutions,
which had purchased large quantities
or such investments at much highen
prices, have been taking advantage of
late of the nprecedentedlv low quota
tions in order to lower the average cost
ing to bond dealers, both the savings
banks and the insurance companies
have been in the market somewhat for
municipal bonds, particularly those put
cut by New York City. And the in
Surance companies have purchased some
Canadian provisional securities within
'he last few days, it was learned yes
terday.
Although the institutions during the
recent weeks of liquidation in the bond
market came out as leading factors on
tho buying side, they have not yet
thrown anything like their full tinan-
cal energy into that market, in
Vestmert bankers said Yesterday The
insurance companies, particularly, which
are less hedged in by Legislative re-
guirements than the savings banks.
have been fairly active since finishing
their payments on government loan
subscriptions in mortgage loan on city
real estate and in farm mortgage loans.
Canny Buyers
An officer of one of the principal in
vestment houses, in commenting on the
recent activities of the institutions,
remarked that over long period the
insurance companies, and to some ex-
,ent the savings banks, were exceed
iHgly shrewd bond traders. and had a
habit Of selling up near the top and
Of buying down toward tho bottom.
Under present tax laws, wealthy in
dividuals have confined their bond pur-
chases, according to bankers, chiefly to
tax exempt securities and to highly
speculative securities. Individuals Of
varying degrees of wealth have recently
been active buyers Of foreign govern
ment internal bonds. At the office Of
The Deutsche Bank it was said yester-
day that the estimate that Americans
were trading in $100o,OO0 of German
bonds day was not extravagant. More
over. the sale of the new French in
iernal loan is expected to reach 100, ,0O0,.
~ francs, and has already exceeded
100000 francs, according to state
ment made at the French Financial
Commissions Office