Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-02-21
GOSSIP OF
< THE STREET

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49, ~ ANA
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o,, aside from the new offerings OF Sc
trae,es last week. there Is little OF in
ht eauG IN the bond market. 1t is re-
1u,u 1no,,I.u as surprising to many of the
n. bankers that the bond market,
u.oIi whole, should have stood up so
wbi.,u bi ,uhder the burden of new offerings
wni,, nave been in exceptionally large
soi nno LOT nr the last three weeks. Inc
Co,,.,oVU OF twenty year Chilean
s,overhment Ss did not 20 with the same
as nave numerous other issues re-
cbn.N bn.N onered; but 1t was said that the
hos Lc OF distribution OF these bonds
''a oeen excellent.
ho ri,,n reel that little time should
;ss,,n, .n ,or proper distribution OF the
no ~ l., "miv" nu nave Deen recently onered; !;
snhs.ui 10 Meii known that while the initM!
tbn oTa.i Tp.iion mas considerably exceeded
NV ohcrings Tor most issues, this has
,ni,h, W any means, represented what
tbis ho; Tr terinen MS hnal distribntion,
rocoso;ns s,.nrF F denonstrated py tne
h''oss honda Which nave taken place IN
onn vI tnis class almost Immediately
hob 'he CLOSING OF the SUBSCRIPTION
,,,,' uli'tteuly, there have been great
nan unusually, attractive issues put
Io aIlu tnis 10 considerable extent,
na o,ousht aDout their unqualifed sue
n.ho,D Dut some harm has been done else
r,,o tnrougn the high interest return
'",'s carried by the new offerings.
fortnight have been weak with sag
ging tendency from which there have
been moderate recoveries from time to
time. 1t Is stated in bond market cir
cleS that much of the selling has been
due to holders desiring to obtain q
larger income return on their money
and have. therefore, liquidated their
holdings Of Liberty bonds and reinyested
the funds in the issues carrying an 8
per cent coupon rate.
The 8 per cent return on bonds has
been such as to attract numerous in
vestors to them, particularly the So
called small investor, NOT being COM
PEELED to pay n heavy income tax. In
Vestors of this class can we'll afford to
hold bond carrying an s per cent or
better return. whereas the individual Of
pig means, paying large income tax, 4,
reels impellcd to invest in tax exempt
issues to a considerable extent.
The fact that the Republican admin
taxes downward, however, has been in =
strumental in causing many wealthy
individuals to nibble ut the higher in
come return securities of late which,
unquestionably, has assisted to a con :
siderable extent in popularizing the new
offerings OF recent weeks.
Eipapc,,, ,bo C,,h,,, c,,u c
Da-.'. - '"e" Up
Iii !" p'i'e nntS pctI current tnas there
VII ue consiucraplc amount OF torelgn
soacrnniGhI nnanclng during the next
ioM Weeks some OF tne other ooutn
American .,.nm countries Deing mentioned. as
wen; Wen hs one or two european oDiga-
% %.ipi,s ol this SORT Inc arrangements
Mnicn ure progressing smoothly call
ing LOT nhanclng OF the CUBAN sugar
r!9p, a,so ure expected 10 prove OF CON
Siuerao'e importance as IL VIII clear up
Ntuat.on "hich mas given considerable
apprehension 10 bankers generally over
period OF several weeks past.
knowledge of this new financing ar
rangement, unquestionably, has been
responsible TO some extent for the i'm
provement which has recently been
shown i'll the sugar market, prices
having moved up moderately. 1t Is
pointed out that the Cuban financing
which is TO be done by group Of
American bankers, will permit the
gradual elimination Of the excessively
heavy obligations which are now held
by numerous Cuban institutions which
are somewhat similar to the frozen
credits lodged in large number of
American banking institutions at the
moment.
Much interest is being shown in the
money situation md bankers who have
mrch to do with Iooning or funds ;nsist
that there is no immediate indication OF
n substantial let.up in either cali or
time money rates. Some of the so
coIlod commercial institutions n Ia
10y