The New York herald., 1921-06-06
BANKERS BUSY ON
FRENCH FLOTATION
Other New Issues Marketed in
Short Business Week To-
tai S40,000,000.

Investment bankers devoted last week
their energies to the proper distribution
of the 500, OoO,O0O French loan. and up
to the close OF business on Friday all
the issue virtually had been placed with
Investors. Qualification over the sue
cessful flotation of the loan was ex-
pressed in banking circles, as at the out
set of the flotation 1t was thought that
the bond market was not in a position
to absorb such large foreign issue.
In contrast with the French loan of
last September, when subscription books
were open only two days It might be
said that the latest French loan went
slowly, but in this instance the bonds
have been exceptionally well placed The
fact that the French loan did drag
little. however, is taken as an indication
that the market Is not in a receptive
mood for more foreign issues. Several
nations are waiting to place good bond
issues in this market, 1t Is understood,
but It Is believed that investors will be
allowed to digest comfortably previous
issues of foreign bonds before further
offerings Of that type be made.
Since the war American investors have
become educated to the value Of foreign
securities, a situation absolutely neces-
sary II America is TO take it's place
alongside Great Britain as an interna-
tional banker, but a large part of our
population still displays tendency to
favor domestic investments. In other
words, American investors have not the
broad perspective of the Britisher. who
Nv,xfa &c in aV~xy
quarter of the globe.
Taking into consideration that the
Street continued to wrestle with the
French loan last week and that the
week was a short one. I'm which holi-
day spirit prevailed. the total OF new
securities offered was well up to recent
standards. Approximately si00 900 of
new bonds was placed on the market,
that total being divided into numerous
moderate size loans to Industrial and
public utility corporations and municipal
governments. All but about 100000 Of
that amount was offered to the public
on Wednesday.
The largest item was Sl5O0o0O0 OF
per cent. twenty year convertible
bonds Of the United Drug Company
Next in size was 81 100000 Of the Inter-
state Iron and Steel Company's first
mortgage twenty year per cent. sink
ing fund gold bonds, series A. The other
issues were: 81 10000 of the New Eng
land Power Company first mortgage 5
per cent. sinking fund gold bonds:
81 10000 OF s per cent. sinking fund
gold bonds Of II. o. Wilbur & Son,
Inc; 100000 of the State OF North
Carolina's one year per cent. notes:
s25oo,00o of sinking fund gold bonds OF
the F. S. Royster Guano Company
$780, 900 of three year per cent. sink
ing fund mortgage bonds OF the Column
bus Railway. Power and Light Com
pany; 81 10000 OF per cent. gold bonds
of the State OF Oregon: s2.5oo.0o0 of the
city OF Flint, Mich. School District
per cent bonds and 100000 of per
cent. coupon road bonds OF Richland
county, South Carolina
An issue OF s. 900 OF the city OF
Toronto's per cent. bonds were offered
by Montreal branches OF several New
York bankers. II is said that Ontario
may borrow as much as 81. 10000 In
this market shortly. It ls understood
that definite steps toward that end may
be taken early this week.
During the next two weeks the invest
ment market viii be dominated by sew
eraI very large municipal issues. includ-
ing the New York State and the New
Jersey financing IL Is anticipated that
obliged to do some more financing dur
ing the next week or ten days. No def
mite word has come from Washington.
but Il Is believed here that the Govern
ment will be obliged 10 put out a large
Issue OF Treasury certificates of In
debtedness or short term notes.
The most important event in the mar
ket for outstanding bonds was the heavy
liquidation OF Liberty bonds brought
about by the action of the reserve bank
in putting them on a plane with other
securities as collateral for loans. The
tax exempt 3i5s declined nearly point
dtIrSae the single session. dropping 10
thefr lowest price. Sc. Other bonds dis
played sagging tendency throughout
ths week
Students OF the bond market are n
little less confident In their predictions
OF n big rise In bond prices from here.
They arc impressed with tho keen COM
petition for capital from all quarters.
particularly from abroad and n Il con-
tinues there will be, Of course. littlo
hope OF material decline IN interest
rates. a factor absolutely essential TO
IN advnnce In honda