The Washington herald., 1920-04-03
BOND MARKET
VERY QUIET
Recent High Money Rates
Retards Feeling Of En-
thusiasm.
CONDITIONS HEALTHY
New Securities Satisfactory.
Mexican Issues in De-
mand-Rails Active.

was general feeling In bond
market circles that a quiet tone will
obtain during the next fortnight
It was pointed out that owing to
the numerous offerings of fresh Sc
curities which have been made re-
Gently, the market at the moment is
slightly topheavy and 1t should re-
Quire about two or possibly three
weeks in which to effect proper d.
gestion of the new issues with the
investing public. While the new Sc
curities offered were snapped up
quickly, 1t is pointed out that on all
occasions of this character dealers
withdraw a certain amount with a
view to realizing a substantial prof
it thereon from the public and this
means that a certain amount OF
time is required to properly place a
new issue. This is believed to have
been the case with some of the sue
cessful fotations of the past ten
days. 1t is recognized that the In
terest return on the new securities
which have been put out has been
a highly satisfactory one and there
fore some entertained a belief that
there will have to be a readtust-
ment of quotations for some OF the
old seasoned issues to meet the
rates obtainable on the newer Of
ferings. Already there has been a
reflection of such a situation in
many of the standard issues which
have worked lower during the week
and 1t is evident to some that there
will be possible further recessions
before any pronounced upward
movements take place.
This does not by any means in
dicates that the bond market is not
in a healthy condition at the pres
ent time. AS a matter of fact, some
of the leading investment houses of
Wall Street feel that the market
will be a constructive one from this
time on and that advantage should
be taken at the moment of the at
tractive possibilities obtaining in
the trade. In other words. it is felt
that investors can conservatNely
pick up many of the standard issues
without fear of much reaction in
the future. The money situation
naturally has been a factor in the
bond market during the past week,
rates having advanced to above IL
per cent. which has somew hat re-
tarded the feeling of enthusiasm
previously obtaining in the bond
market. 1t is now felt however
that with the April I interest date
out of the way. the situation as
whole will show improvement, in
so far as money rates are con-
cerned. This will be beneficial to
the securities markets as a whole.
Foreign Issues.
One OF the features OF the bond
market during the past week has
been that of the demand for Jap
anese government As and AIS,
which have touched a new high quo
tation on the present upward move
ment. Many of the leading bond
houses of the street have unhesi-
tatingly recommended the purchase
of these bonds Notwithstanding that
there have been no news develop
ments to account for the rather pro-
nQupced advance which has taken
place in them over a period of the
last few weeks. Mexican govern
ment issues also were in demand
following the announcement that
that country expected to resume in
terest payments on its obligations at
at early date. There was immediate
rally in Mexican bonds of about ten
points. IT being the first activity
that had been shown in these issues
in a considerable period of time.
Anglo French bonds were firm and
advanced to above 9S during the
week which was well maintained.
The United Kingdoms were in fair
demand.
Rails.
1t was reported in the trade that
there has been considerable
amount of railroad bonds sold dur
ing the week for foreign account.
which was responsible for the mod
crate recessions which occurred in
many of these issues. 1t is well
known that Great Britain and
France are desirous of reducing the
amount of their obligation in this
country in so far as possible in con-
nection with the Anglo French loan
maturity next October and it is
therefore perfectly plausible to ex-
pect that such securities as are
available for the purpose will be
sold for the account of those coun-
tries here in order to provide as
large an amount of money as possi-
BILE prior to that date, which in turn.
will eliminate the necessity for an
excessively large total of gold ship
ments from Great Britain to the
United States. Already the gold
movement from Europe to this
country has begun. in the neighbor-
hood of s15.o00,0o0 of the precious
metal having been received to date
and Ii has been announced that fur
there shipments are now on the way
to this center. While 1t is not
known the exact amount of gold
that will be shipped here from Eu-
rope IL is understood that a total of
at least 800. 100000 and probably
more will be forthcoming.
short Term Notes.
Short term notes were in fairly
good demand during the week until
the rates for interest jumped to the
higher levels recorded but the set
back which took place near the close
of the week was not regarded as OF
very great significance it is realized
that the securities included in this
category, are now quoted at levels
showing a handsome return to the
investor.
Acceptance Bills.
Acceptance bills were quiet with
the discount rate ranging at from
5A to 6k. There was some de-
mand for bills of this character from
out-of-town institutions.