The New York herald., 1921-09-19
BOND MARKET HAS
MORE ACTIVE WEEK
Offerings Of New Issues Total
S50,009.000. Il S35,000,-
900 Gain, in Period.

Business in old bonds and flotations
OF new ones resembled last week the
activity which characterized the mar
kets OF earlier in this year. Offerings
Of new securities were larger than ex-
pected and aggregated more than s5o,-
0oocoo in marked contrast 10 $4,000
900 in the previous week. The new bonds
were distributed easily in a remarkably
short time and at the end OF the week
dealers were sold out again. Last
weeks rise in bond prices on the New
York Stock Exchange was stimulated
by a further easing OF. the money mar
ket and the readiness with which IN
vestors absorbed all new, issues. Prices
OF all classes OF bonds were up consid-
erably at the close of the period.
Another factor having strong bear
ing on the bond market was the un-
precedented demand reported for the
three year United states Treasury
notes and the shorter term United
States certificates Of indebtedness. The
oversubscription to the S6oo,0o0,oOo Fed
eral offering was 1873 per cent. The inn
provement in investment conditions was
emphasized by the sale of $25, 900 of
the Canadian National Railways fif-
teen year per cent non-callable sink
ing fund gold debenture bonds in about
twelve minutes. That issue was Of
fered on 615 per cent. basis, the low
est one of this year for Il railroad Is
sue. That the bonds were snapped up
by investors with such avidity shows
that IL is generally felt that the down.
ward trend in money rates has started
in real earnest, which was made more
J,a f. ~
and Victory issues. Sales OF United
States war issues expanded daily last
week.
Railroad bonds which were actively
bought during the first part OF the week.
were more or less neglected in its latter
part, when interest switched to Govern
ment and industrial issues. There was
good demand for municipal bonds and
prices were lifted still higher. Munic-
ipal bonds have recovered at least half
OF the loss which they sustained during
the first half OF this year.
The reason for the halt in the advance
In railroad ponds is that they have
reached the point where their yields are
not as attractive as those of other
classes of securities. For instance.
underlying taxable railroad bonds that
are legal investments for savings banks
yield little more than municipal bonds
that are exempt from all Federal and
State taxes. Indeed a few municipal
issues yield slightly more than certain
of the rails. For example, Northern Pa
ci1ic prior lien As yield $50 per cent
and Jersey city s rs 5.25 per cent. New
York city 31as yield 5.15 per cent. and
Central of New Jersey general mortgage
5s the same.
The yields OF miscellaneous railroad
bonds have been cut materially until
only a few of them return more than 6
per cent. Thus. with the new railroad
issues still yielding 65 per cent. many
believe that the move in railroad bonds
has gone far In discounting the changed
money conditions, at least for the time
being.
Most industrial bonds selling on the
New York Stock Exchange vstill have a
long way to go to make up their losses
and high yields are offered in that group
Other important issues sold last week
were s5,000,000 OF per cent. one tc
twenty year school district bonds. s4. 000,.
\ 900 of Toronto's AZ per cent. gold bonds
! S2,500.000 OF the Appalachian Power
\ Company's fifteen year per cent
! bonds. s2.000.000 of the Soo's first con
solidated 6s and $5.000,000 of the fifteer
year IS OF the Jencks Spinning Company
| A payt of the Federal Land Bani
bonds were offered, and there probably
will be an offering of about $50. 900, e0C
more on or about October l by a coun-
\ try-wide syndicate. There were no in
dications that any South American
l financing was inminent, despite talk IN
bond circles of loans to Chile. Peru and
Argentina.