The New York herald., 1921-03-14
INVESTORS BUYING
FEW NEW BONDS
Proximity Of Tax Payment
Day Makes for Dulness in
All Lines.

Improvement IN the investment si'-
uation which appeared TO be in sight at
the beginning OF last week did not fully
materialize and distributing bankers
who brought out new issues OF securi-
ties were inclined to believe that they
had mlsiudged the market. For divers
reasons investors displayed little dispo-
sition to place their ready cash in new
bonds no matter how attractive were
the latter The most important deter
rent. perhaps, was the close proximity
Of the date or payment OF the income
tax. a factor which likewise adversely
affected the market for old line bonds.
AS predicted. there was a sizable IN
crease in the amount of new securities
offered last week, which aggregated
about $4s. .000,0 900, contrasting with but
s23. .00o. 900 In the preceding week. and
about S13, 100000 in the last week OF
February. Two fairly large issues were
placed on the market-S25 100000 or
Humble Oil aud Refining two year
per cent notes. and S10.000.000 Of Gu
ban American Sugar ten year per cent.
tirst mortgage co!l9teral bonda ihc
latte, aprarently were distributed very
wen despite uncavorable market condi-
tions
Approxi xinately $4,000 900 ot the new
offerings or last week were city and
state issues. Only two OF three of them
were of an important size however, and
they were $3,000,000 state of South
Carolina 6 per cent. notes $2,oOO,00O OF
Philadelphia 3hs, S1,379,0o0 OF Miami
Conseryancy District, Ohio, 5hs, S2,45o,-
600 OF Tarrant county. Texas, os, ana
81 .O0O. 600 of Province of Manitoba 5s.
The weeks offerings of municipal Sc
curities included many small blocks OF
bonds sold by the cities or troy. lay
ton, Erie, Atlantic City. Mount vernon
Cleveland, Columbus, Omaha, Minneapo-
lis and Paterson.
bids will be received this week Tor
two, fairly large issues--$2, 100000 OF
5L per cent. road bonds of stephens
county. Texas and S1,112,0oo OF per
cent road bonds OF Ouachita Parish,
Louisiana.
Business in municipal bonds continues
very dull and specialists still are selllhg
their allotments OF certain large issues
purchased at the beginning OF this year.
Dealers in industrial and other oonos
are better of. and some OF the largest
of them report the lowest inventories
6f unsold securities in many months.
pleted bankers expect the investment
market to reawaken They express
themselves as being confident or their
ability to distribute millions OF dollars
worth of securities represented in sew
eral pending large pieces OF industrlsl
and railroad financing. The $1.oeo.ooo
of per cent bonds purchased from the
San Joaquin Light and Power corpora
ton OF California last week py Ne"
York bankers will be offered to the pup
lie to-day or tomorrow. II is probable
nat there will be also an Offering of
the Chicago and Northwestern Railway
Conpany's equipment bonds soon.
II is understood that in the case OF
several corporations which had planned
new financing negotiations have peen
abandoned temporarily awaiting lower
money market.
The first shipment OF gold on account
of the Canadian maturity was received
from ottawa last week and the Domin-
ion Government is ready TO take up Us
obligations on April ]. The Chicago.
Burlington and quincy financing was
discussed at length. and II IS under
stood that new plan for meeting It's
s2i5 600. 90 maturity iu July has been de-
cided on Applications for the new OF
ferIng or 500 0o0. COO OF United states
Treasury certificates Of Indebtedness
were considered satisfactory.
Lower prices We're seen In the bond
market last week. another factor react
ing against the purchase OF new securi-
ties. and for the first time IN many
w.el. support was very thin. The WITH
drawal or the support lent 70 the Lin
erty market by Government purchases
for the sinking fund was an explanation
FOR the crumbling away Of prices ~ the
face or rather heavy sales made 70 OBJ
tain funds to meet income taxes. The
decline in Liberty BIS dragged that
issue down 10 a new low record Tor this
wear Victories. which have an earlier
maturity. continue to be taken out Of
the market by the United States Treas
ury Department.
Railroad bonds were affected unfa-
vorably BY drastic declines in railroad
stocks. brought about largely by the
turn taken by discussions between car
rfers and labor Many railroad bonds
sold down 10 within a narrow margin
Of their December lows.
The firmness displayed by foreign
government bonds indicated that the
worst in the European situation had
been discounted. Indeed. some foreign
bonds advanced slightly. while the rest
-. a. Il