The New York herald., 1921-04-25
BUYING TEST MET
BY BOND MARKET
Total Of New Financing Is the
Largest in Two Months
Good Inquiry Reported.

The investment market last week was
put to a severe test when called upon
to absorb slightly more than $4,000 900
Of new securities representing financing
by the Federal Government. cities and
States. public utility and Industrial COM
panies The result was extremely en-
oouragins to the banking fraternity, GER
tain members Of which had been rather
dubious as 10 whether the bond market
had come back 70 a point where 4 could
easily take care OF large new issues.
New financing last week reached the
largest total since the second week in
February. when about Sf2b, 900, 900 new
bonds were sold 70 the public. LAST
weeks total sweIls the years aggregate
OF new issues In the East 70 slightly
more than ss2S 900. 900. Investors seemed
ready TO buy new bonds at the prices
asked and a good inquiry was reported
By dealers from every quarter.
The two most important issues were
the $40 900. 900 Federal Land Bank IS
offered on Monday, which We're more
than half sold at the end or the week
and the 30.o00000 first mortgage s
per cent. sinking fund gold bonds which
were oversubscribed in less than two
days
The work OF distributing the Lana
Bank bonds and other tax free securi-
ties was facilitated by an increa sed de-
msnd from institutions and savings
banks. which appear anxious TO sink
their surplus funds In long term issues
giving a high yield on the theory that
a period OF easier money is In sight
which, OF course. would put an end 10
the bargains now on the counter.
Despite the competition from the Land
Bank bonds municipal specialists report
a steady distribution or high grade city
and State bonds with prices well main
tanned. The s2.02s 900 Jersey City
School ) las brought out on April Z, and
the s13.973. 900 City of Detroit issue Of
fered on April IL are both more than
half sold.
Several fairly large municipal offer
inss were made last week besides nu-
merous smaller blocks Last week s
total OF municipals included $780, 90
State Of Utah 5ias. g. $50. 600 City OF Gin
cinnati 5iss and si,iss000 Woonsocket,
r. T. 6s. To local syndcates We're
awarded $1,000. 900 OF per cent 20-year
average Philadelphia school bonds and
s3, aS5o0o City OF Boston bonds, which
will probably be offered for sale this
week.
The largest or the miscellaneous Of
rerings was slS, ia 900 issue OF Puget
Sound Power & Light general refunding
mortgage 20-year ~ per cent. bonds
The next in size was A.ooo0oo Marland
Oil 10-year per cent. sinking fund
participa ting gold bonds
An issue or 81. 600 900 OF Wilson a. Co.
Inc. first mortgage per cent. 2b-year
sinking fund gold bonds was quickly
sold on 7.os per cent. basis. The only
other sizabe offering was $3.50 900
Driver Harris first mortgage per
cent bonds.
Several fairly large pieces OF financ-
ing are in sight and several issues will
probably come this week. The Du-
quesne Light and Power Company, q
subsidiary OF the Philadelphia Com
pany. started negotiations for the sale
or sl0.000.O0o OF Is TO 20 year Z per cent.
debentures TO local banking syndicate.
The Brooklyn Edison Company has
been authorized by the Public Service
Commission to issue 100000 OF year
s per cent bonds. The United States
Playing Card Company has arranged
FOR an issue of S.cO00oo s per cent
serial notes and II is understood that a
local banking syndicate has bought ST.
900 900 OF per cent. bonds from the
Rubberold Company.
Bankers have started discussion with
executives OF the Ala bama Power Com
pany relative 10 comprehensive plan
for financing the company's future de-
velopInent. There We're rumorS lasI
week OF Canadian Pacific and Pullman
ParIor Car financing. A new issue OF
81 coo coo ten year s per cent. bond Sc
cured gold notes OF the Twin state Gas
and Electric Company will be offered
this week.
Preparation for taking care OF the
Burlington financing proceeded rapidly
last week and 1t is believed this issue,
amounting to Sis, 10000 lill be offered
early this week. The Interstate Com
merce Commission has not vet an
nounced its formal approval OF the ap-
pEcation for permission TO issue these
bonds but 1t is expected at any mo-
ment.
1t Is reported that a representative
OF the Bank OF North Dakota has
opened an office In New York for the
sale over the counter OF bonds OF
North Dakota The bonds are in de-
nominations OF s25. $50. s1oo and 1900.
maturing IN ten. fifteen, twenty and
twenty-five years and carrying 5% per
cent. interest.
The Modesto Irrigation District. Cali
fornia. will award to-day si0i5.000 s
per cent twenty-three year average
Irrigation bonds. On Wednesday Omaha
will open bids on s2.50o.00o OK per cent.
thirty year school district bonds. and
on Thursday Fresno Irrigation District,
California. will open bids on 81 .O0G
6 and So. per cent irrigation bonds.
The State OF Washington will award on
Saturday 5000 900 five 10 twenty year
soldier bonus bonds al rate not ex.
ceeding per cent