The New York herald., 1921-02-07
BOND OFFERINGS
CONTINUE LARGE
New Foreign and Domestic
Financing Drops Slightly to
S116,000,000 in Week.

There were further large offerings OF
domestic and foreign bonds last week,
although new financing was on a slightly
smaller scale than il was in the preced-
! ing week. Approximately s1l6.OO0,OO
In new securities were offered last week,
in contrast to about $3.50, 100000 in the
preceding week. The investing public
again last week showed itself ready to
absorb all good securities that bankers
could offer No very large issues were
sold, the grand totah being made up of
dozens Of fair sized blocks, the largest
being $4,000. 900. In the week ended on
January 20 there were one $6O.OOO.O 600
loan and two $50, 100000 offerings. The
feat OF last week was the increase In
municipal and State government financ-
ing. State and city bonds of $4,000. 600
to $4,000, 600 were distributed. Bond
awards were made by Idaho. Michigan.
North Carolina, Oregon, Washington,
Massachusetts, Maryland ana Minnesota.
Thousands of new investors have been
driven by the Federal income tax into
municipals with the result that that
class of security has become an impor-
tant factor in the investment world. A
few years ago very little attention was
paid to municipal financing by private
investors, as Is shown by figures for
1915 when borrowings by States and
cities did not exceed 1858. 900. In
1920 municipal bond sales reached nearly
S7S3, 000, 900.
The flood of State and municipal bonds,
which has prevailed since the beginning
of the year. reached its peak for the
time being this week, however, when
many States and municipalities were
considering proposals at the same time.
For the next several weeks only COM
paratively small awards will be made.
The next offering of any size is a $1,000,
600 issue of bonds by the city of New
ark to be made in about three weeks.
Among the State issues last week were
$1,000, 900 of Massachusetts military SER
vice 51h per cent notes. 1t is antici-
pated that there will be many more large
offerings of State bonds to finance SOL
diers' bonuses. Various Legislatures are
considering the issuance of bonds for
that purpose and more than 500, 100000
would be required to finance all of them.
There was keen competition for two
large oil issues, namely, S15,000,000 OF
the Atlantic Refining Company's ten
year 6la per cent. gold debentures and
s12, 1000 900 of the Tide Water Oil Com
pany's ten year 6 z per cent bonds. put
out last week. In each case supscrip-
tion books were opened and closed i'm
y
excess of bonds available.
Other important pieces of financing
last week were the s15.000,000 Danish
consolidated municipal loan. s5.000.000
of Southern California Edison 6 per
cent gold bonds. S6.000,000 of Oklahoma
Gas and Electric gold bonds and $5.000,-
600 of Beaver Board Companies s per
cent twelve year sinking fund gold
bonds.
An offering OF 50.00o,o00 francs OF
Paris Orleans Railway bonds was well
taken, although it had been anticipated
that they would move little slower
than would a domestic issue. Further
evidence of the faith bankers have in
the soundness of the investment market
was shown in the Offering of large
block OF Southwestern Bell Telephone
convertible gold notes, laid on the shelf
in April 1920. when the original offer
ing of 25,000.000 was made.
Bankers professed to be perfectly sat
isfied with the action of last weeks bond
market and were satisfied that the large
offerings of new securities this month
has been properly distributed and
digested. The slight reaction in bond
prices was due largely to the local
money markets firmness. Principal rea-
son for the tight money market was
heavy drift of money into the interior
little earlier than usual. That the
firm tendency of the money market, dis
cernible last week. Is not expected to
continue is evidenced by active prepa-
rations in banking circles for further
large offerings of new securities. II
was expected that several large pending
Industrial and railroad bonds would be
held back for easier money conditions.
but It has developed that this week will
see more activity than ever II is
known that about $40. 100000 of new
financing will be done this week. IT
will start off with an issue Of $4,000. 600
of Gulf Refining Corporation twelve year
per cent. notes. to be followed by
large equipment issue of s15,O00,00o to
! sec. 900. 900. About the middle of the
week there will be an offering of about
| s1O,00O,000 Atlantic Gulf bonds and
loan to Chile Of s25. 10000. The copper
debenture financing expected this week
will total about s40,000.000.
Important banking interests do not
look for tight money for any length OF
time, and II is believed that should the
Government be authorized TO liquidate
substantial part OF the debt due the rail-
roads It will have the effect of loosening
up frozen credit.