Evening star., 1920-05-21
SHARE. P.GA|NS MADE
IN LIBERTY BONDS
Current Low Prices Have
Brought a Big Investment
Demand.
by I. A. FLEMING.

Liberty bonds have apparently
reached the turn in the long, long
road from liquidation to steadiness
and recovery. Millions and millions
of the various issues are being traded
in and the declining trend in prices
has been checked and right-about
movement followed.
Where the buying is 80 general one
mans guess as to where the inquiry
is coming from Is as good as anoth
er's. CnQuestionably many Of the
most cautious investors of the day
have turned to these issues as the
safest field for their efforts-men who
long ago sold out their stocks and
other Wall street investments and
have been waiting for bargains. They
recognize that. with the tax-exemp-
ton features. bonds are the best bar
gain in years.
Moreover. they are excellent collat-
eral
1t is within the possibilities that
many of the corporations that threw
the bonds over in great blocks at ma
terially higher prices have rehabili-
tated part of their holdings and taxi
en- credit for losses 1t is believed
that insurance companies are adding
to their holdings. bringing down the
book value of their total holdings of
governments.
Assistant Secretary of the Treasury
Leffingwell has gone on record as
believing the great American public
is back of the market; men with large
estates trust funds seeking invest
ment. and many bankers are taking on
new commitments of the governments.
He predicted a healthy advance. The
banking fraternity gives approval to
the thorough liquidation of the liber-
ties as in line with the idea Of the re-
serve board In getting these issues
out OF the banks into the hands of
investors willing and able to pay
for and carry them.
Substantial recoveries from recent
lows were made today.
Liberty second As rose to 827O, an
advance Of $3.50; first AXIS at IS
showed a gain Of 81; second AXIS, at
$3.50. rose $40: third ANS, at S7.10,
gained $3.50. and fourth AIS. at 1890.
were strongest of all at a gain Of
$3.50 per 800.
and 4As gained s1.20 at $500. Deal
ings in these issues up to II o'clock
approximated $4,000 par value.
Local Values Easier.
Values on local securities continue to
slowly seek lower levels. not with any
thing approaching urgent liquidation,
Uut Will HOIUcES d llItlS more WlillHK
to accept concessions to make sales.
Chesapeake and Potomac Telephone
SIS. which have been in good demand
around 90. sold today at S7T to 87%.
Two lots of twenty-five shares each
of Capital Traction stock brought IS
and a small lot SAY. indicating further
recession.
Railway and Electric was entirely
nominal at II to 1917 for the common and
with A bid and As asked for the pre-
ferred shares.
Many Acceptances to Dinner.
Many acceptances have been received
for the stock exchange dinner to be
given at the New Willard. Tuesday next
at s pm. The dinner is complimentary
md the guests OF the exchange will in
clude leading men in banking, general
business and politics.
Foreign Exchange.
German marks again showed strength.
advancing to .0245. while French francs
we're quoted at .0736, also sharply better;
Italian lire were quoted at .O524 and the
pound sterling at $3.50.
The bonus Bill.
Local correspondents OF New York
market houses were in receipt Of many
queries as to the probable fate Of the
bonus measure in the Senate. Most of
the replies seemed to Indicate small
chance for passage. while there are good
chances for a veto If it reaches the
White House.