The Washington herald., 1921-02-13
LONG TERM BONDS
OF CHILE LOOKED
FOR this WEEK
Announcement of Sale of
$25,O00,OOO to N. Y.
Group Expected.
SUCCESS PREDICTED
Experts Charge Latest Offer
ings Have Been Distributed
Unevenly.


to prominent bankers, official an
nouncement will be made of the
sale of 325,00O.O00 of long term
Chilean government bonds to
group of New York banking integ-
ests. 1t is stated that the so-called
South American group simply is
waiting for confirmation Of its
terms to the South American re-
public before making official an
nouncement of the conclusion OF
the transaction. In the trade the
opinion is expressed that these
bonds would go well with investors
because it is expected that they
will carry attractive features as
well as a substantial income return.
The $4O.O0O,OOO of one, Two, three
and four year notes of/the Copper
| Export Corporation authorized for
! the purpose of financing 400,oo0,OOO
| pounds of copper which is to be
trusteed and removed from tpe
| market were well received in in
vestment circles and little dtni-
Guilty was experienced in placing
! them with investors. As a matter
of fact the demand for nearby ma
turing obligations has been better
than that for long maturities. re-
| Gently, with the result that most OF
the short term paper has been taken
out OF the hands of dealers and
! lodged in permanent quarters.
Bond OversupPIy Is Seen.
Unless there is "a let-up in offer
ings of new securities, in the near
! future IL is regarded as highly prob
able that the bond market will pass
into a stage OF doldrums, because
I II is evident that the large issues
which have recently been put out
have not been properly distributed
as is evidenced by the fact that
prices for them almost Immediately
after the closing OF the books and
| allotment of the bonds have declin- =
ed to below the subscription quota
| ton. This clearly indicates that
there is an Oversupply of issues at
this time and while the public de-
mand for securities is exceptionally
large because of the peculiar cir
cumstances obtaining, it is not SUI
ficient to absorb the continued out
pouring of securities with the as
surance of their being successfully
lodged in the hands of actual in
vestors. Bond men fully realize this
phase of the situation but as yet
have failed TO take heed OF the dan
gers incident to overCrowding OF
the market or otherwise there
would be a cessation OF new issues
During the past week. there have
been consid ra bly, more than SlOo,-
100000 of bonds or notes offered for
public subscription. an amount
f,h in he
! looked upon as tremendous.
Money In Other ChanpeIs.
Bond men in discussing Condi-
tions relative to the trade said that
in their opinion there are many fac
tors contributing toward success OF
new financing undertakings, inCIud-
ing the slowing up in commercial
activities. which, in measure, has
released some of the sO-Called
frozen credits" the practice OF
thrift on the part Of the public
which. to a considerable extent. has
been brought about by those inter
eStS that were endeavoring to gOuEe
the public in the matter OF prices
charged for commodities, products
etc, and some also profess to be-
lieve that the operations of the Vol
stead act have been an influencing 6
element in the investment situa-
tiOn. Naturally, with the narrow
ing down of business generally
money which ordinarily would be
used in the conduct of general mer-
camille lines is free for employme Mt
elsewhere, and the purchase OF Sc
curities is the most logical channel
for it to seek. particularly because
: l., H., a.
, come return obtalnable through the
, purchase Of the multiplicity Of high
grade securities which are now
available in the open market. There
has not been a time in the past
when so large an income has beer
available as is now shown on high.
grade bonds of foreign governments
and American railroads and indus.
. trial corporations.
slide in Prices Forecast.
, Prices of high-grade long-teru
, bonds which have been actively
traded in on the New York Stock
, Exchange over a series of years re.
Gently have shown a tendency
=, toward lower levels. this being
brought about entirely by the at,
tractiveness of the newer Offering.
| which have been made showing
such high income return on the in.
vestment. 1t is perfectly obviou.
that either the older issues mus
: come down in price or the newer
= ones go up in price, so that a proper
, equation of the two is reached. and
l therefore it has not been SURPRISING
in the trade that the price change.
recorded should have taken place
! 81
adjustment of quotations to NEE
. | thn nn,rlN Grant rnnaitinnn