The New York herald., 1921-10-31
SMALL INVESTOR
IN BOND MARKET
Calling Off Of Strike Dispels
Fears Of Timid-Week's
Sales S53,0O0,000.

The factor having the most important
bearing on the investment situation last
week was undoubtedly the radical action
Of the United States Treasury Depart
ment in Offering it's Certificates OF In
Sebeeane:s at the low rates or 4A ana
AZ per cent. 1t had been anticipated
that those obligations would be offered
at not lower than per cent.
Despite the fact that last weeks call
money rates averaged more than those
OF the preceding week. the leading au-
thorities in the Street maintained that
Aivu-y was plentiful and thao II shouiu
remain easy for the rest of the year.
Indeed 1t was said that bankers were
preparing for a per cert. money
market
With the knowledge of those facts the
bond markets continued buoyancy and
the steady appreciation in values of sea-
soned bonds need little explanation. IL
has been demonstrated clearly by the
ease with which enormous amounts or
new securities have been disposed OF
that the ability of the American investor
to purchase securities has not been
greatly impaired. This country Is the
wealthiest in the world and has vast
natural accumulation Of investment
funds every year.
The calling off Of the railroad strike
was really only side issue in broad
movement In investment values, mark
ing the important change in. economic
conditions now obvious to all. 1t 10
true that timid investors had deferred
their purchases until II was settled, and
their buying caused the squirt in Thurs
days market There had been,. how
ever. steady accumulation Of all the best
issues for a fortnight before the can
collation. of the strike order.
The real incentive behind the upward
movement in the market was the wide
spread belief that the industrial and
commercial life of this country was
well on the way back to normality. The
ascent in bond prices has been gradual.
as the unfavorable factors in the sir "a
ton have been eliminated one by one,
but o comparison of present prices of
bonds with those of about three months
ago shows that important advances have
been recorded. There is nothing to in
dictate that that Improvement will not
60 on for several years as interest rates
seek lower levels.
More than $53,000,000 of new bonds
were sold last week in small parcels to
investors. That amount was greater
than the sales of the preceding week.
( The largest item was a $16,000,000 issue
of the Philadelphia Companys first re-
funding and collateral trust mortgage 8
por cent. bonds. There were also sales
of moderate sized State and city issues,
including several Canadian offerings.
The $12,659.S0 bond issues of the city
of Philadelphia, sold late in the week to
a New York syndicate, were offered
promptly for subscription. Financing
for domestic corporations and foreign
governments is going forward satisfac-
torily and probably there will be several
large fiotations in the next few weeks.
A new Chinese loan Is being considered
and the Cuban situation is about un-
changed.
1t Is understood that the 100000, 900
OF Federal Land Bank bonds recently
offered have been disposed of. A long
list of State and municipal issues viii
be acted on in November and several
fair sized f1otations pending include
$4.000,000 Of the State of Michigan's
.5la or 5Hs, $3,00o,0oO of Los Angeles's
61as, $2,s60.o0o of Sacramento's bonds
and S1o.o00.000 of the State Of Oregon's
soldiers bonus bonds