The New York herald., 1921-07-11
BOND MARKET HAS
MORE ACTIVE WEEK
S44, 100000 in New Securities
Are Absorbed Quickly
by Public.
Average Bond Prices
July 8. 1921.

The revival of interest in the invest
ment market last week after several
weeks of dull business was an agreeable
surprise to distributing bankers and
dealers, who had not expected a resump-
ton of activity so soon. In the earlier
months of the year new issues were fed
to investors until they could take no
more, and 1t was believed generally that
conditions were such that any important
new financing would have TO be held
over until fall.
Investment funds appeared to be
plentiful during the last few days Of the
week. and the $44.0O0,O00 worth of new
securities offered to the public met with
a ready response. Last weeks new
fiotation totalled only about $12.000,OO0
and that small amount was not seasily
disposed of. Bond dealers throughout
the country reported an increase in the
number of inquiries from investors de-
spite the heat and the fact that last week
was cut short by the holiday.
The most important issue was $25. .000,-
900 of the Canadian Northern Railways s
twenty-five year 8I5 per cent sinking
fund gold debentures. which were over
subscribed in a few hours. The next in
size was a/s7, 100000 offering of the
Rochester Gas and Electric Corporation
general mortgage twenty-five year Z
per cent. gold bonds. The only indus
trial financing was an issue of $3,b0O,-
600 Of first mortgage fifteen year s per
cent. sinking fund gold bonds Of the
Salts Textile Manufacturing Company.
Municipal bond specialists expressed
themselves as highly pleased with the
reception given the s4,277,000 of the
city of Baltimore's per cent. bonds
and the numerous small issues of
city and State paper. The Baltimores
were disposed of few hours after they
were placed on the market
The general opinion in banking circles
as to money market conditions during
the balance of this year is that they
will be much easier and that the de-
mand for investment securities is going
to be good. 1t Is well known. that many
large Industrial corporations are wait
ing the opportunity to transfer their
loans from the banks to the investor
and that the railroads are eager to bor-
row money for equipment, extensions
and Improvement. The latter, however.
no doubt will wait for a lower money
market before attempting new flnan-
cling. Meanwhile 1t Is expected that
they will receive help from Washing
ton. A large amount of foreign finan-
cling of governmental and industrial ma
ture no doubt will be arranged here.
States and municipalities are still In
need of large amounts to carry on pub
lilo works, and borrowing for such pur-
poses Is expected to constitute q big
percentage Of the years total of new
financing. In the first half Of this year
long term municipal financing reached
the unusually large total of $499, ,027 .375.
or at the rate of 81, 900, 100000 year.
On July IL bids for the $l5.O0O,009 Of
6Ia, 5st or per cent. one year Michigan
soldiers bonus bonds and 100000 of
5ih or 5A per cent. ten, twenty or thirty
year Michigan soldiers bonus bonds
will be opened. Other large municipal
offerings in the near future are 100000
of So per cent. five to thirty year bonds
of Bay City, Mich, to-day; $,S7S,0O0 OF
5A per cent eleven and one-half year
highway bonds of Sacramento, Cal. on
July Il; $500 900 of one to thirty year
school bonds of the city of Newark.
n. j.. on July IA: s2,50o,0O0 OF 5h per
cent. school district bonds of Columbus,
Ohio on July 10; 100000 OF per cent.
twenty-five year and s3,3 500 of per
cent forty year educational and char
liable bonds OF Raleigh, N. c., on July
15 s.. .00O,0 900 of 5k per cent. fifty year
bonds of the city of Philadelphia. Pa.
on July IS: s., 200, 600 of per cent. bonds
of St Paul, Mimi, on July Is, and
81, 100000 of 4s4 and 5h per cent. bonds
of Mercer county. Pa, on July p.