The New York herald., 1921-08-22
FLOATING SUPPLY
OF BONDS lessons
Dealers Say, Although Demand
Is Good, They Have Few
Securities Left.

There was nothing OF special signifi-
canoe in last weeks investment market.
Offerings OF new securities were ex-
tremely light amounting to little more
than s10,0O0.O00, as contrasted with
more than SIS. 900, 900 in the preceding
week. The increase In the supply Of
loanable funds toward the end Of the
week had an appreciable effect on the
market for outstanding bonds and busi-
ness was very quiet generally.
In the absence of new offerings Of
consequence the floating supply OF bonds
is fast approaching the vanishing point.
The only issues OF any size OF last week
were municipals. namely. S2.0OO.00O De-
troit rs and s2,S50.000 Columbus. Ohio.
per cent. seven to twenty-five year
5& to = per cent. bonds. The next In
size was an offering of.s1. 500. 900 OF ten
year 5 per cent. gold bonds OF the Pathe
Exchange. Inc.
Meanwhile dealers are anxiously look
ing for something to sell. They say that
the investment market Is sound. that there
is real demand for good bonds and their
Shelves are almost bare. The immediate
outlook for new financing offers little
relief to the situation as no important
railroad or Industrial loans are expected
for several weeks.
At the close of the week onfy one
offering was in sight, that of Sl,50O.000
of the International Cement Corpora
tion's bonds, and which probably will
be made early this week 1t is true that
more activity is expected after Labor
Day, but 1t is believed that the first
large loans will be to South American
countries. 1t Is said that several groups
of New York bankers are angling for
such business.
Generally speaking. students of the
bond market are very optimistic, believ-
ing the country to be economically sound.
and that many favorable influences are
at work at home and abroad. Pracu-
cally all lines of business are looking
forward to improvement next autumn
and winter
1t is thought that the day when bonds
will be selling again on basis OF or
5 per cent, return is not very far of.
At present there are several high grade
bonds that yield from to per cent.
In the words of one bond man, "A few
years from now, as We look back 70
1921. we will wonder why we were not
farsighted enough to take advantage
of this opportunity to invest our funds
in high grade securities that viii give
us yield on the investment higher than
il has been for many years ana unuoupl-
edly higher than it will be again for
great many years to come.
In connection with the municipal bond
market the Bond Buyer says: In the
municipal field there are more new bonds
in sight than in other branches OF the
investment business. But, in comparl-
son with earlier dates this year, there
IS not anything like the volume OF stuff
ovcrhanging the market. A few big Is
sues are being considered and there VIII,
Of course be others announced from
week to week. Dealers. however are
concerned as to where enough bonds are
coming from to keep them busy, rather
than worried for fear the supply VIII
exceed the demand The floating supply
OF bonds has been reduced to u minimum
and any increase IN the demand when
might occur after the first Of the month
would probably have the effect or put
ting values up TO a considerable extent.