The New York herald., 1921-10-10
LIBERTYS' ADVANCE
FEATURE WEEK
Reinvestment Demand Excep-
tionally Heavy-New Highs
Are Reached.

The remarkable feature of the last
weeks bond market was the sharp rise
in the values of Liberty issues under
an unusually heavy reinvestnent de-
mand stimulated by the continued trend
OF the money market toward greater
ease. Certain OF those issues advanced
as much as 81 in the period and some
Of them to new high marks for this
year. That demand from investors was
reinforced by heavy Government pur-
chases. The Treasury Department is
purchasing Victory 4s4s alone at the
ratio OF about slo0Oo.0oO week.
Now financing by governments. mu-
inequalities and corporations continued
large, exceeding all expectations. APP
proximately $103. 100000 OF now bonds were
offered to the public by distributing
bankers. In the preceding week t162.-
100000 of new bonds were offered. OF
course last weeks total was swelled by
the $50. 900 ten to twenty year Federal
Land Bank s per cent. bonds.
1t was generally believed that that Of
ferlng Of Land Bank bonds marked the
peak of the present investment move
ment and that the next few weeks
would be period OF quiet. The tre-
n.endous demand for Liberty bonds and
the rapid absorption of all new issues
have changed calculations somewhat,
and bankers are now inclined to the
view that mora money Is available for
investment than was at first estimated,
which being the case. there is likely to
be continued activity for considerable
mai ri rfy "a RI 1v ate 10
eign loans are in contemplation. The
two foreign loans offered last week
were easily disposed of In a few hours
and, moreover, investors competed for
the bonds in the open market as soor
as dealings were opened in them in the
New York curb market.
The $12,000.000 Of Queensland's twenty
year Is. which were offered on a ITO
basis. attracted particular attention as
being the first Australian loan ever
negotiated in this. country. Australia
previously had had all her financial re-
quirements satisfied in London. AS it
Is known that several other Australian
cities are in need Of funds. the expert
ment may be repeated.
The other foreign loan was a $12, ZOO 900
issue of Rio de Janeiro's twenty-five
year IS, which were offered on an $50
basis. Several other South American
loans are being discussed. including an
other Argentine arrangement. and there
is likelihood OF large Chilean and Cuban
loans In the near future. The Cuban
loan has been discussed in terms Of
about $50. 900 or 60.o00.0 900. The Chilean
proposal Is for $25. 5.000. 900. The extension
Of financial assistance by American
bankers to South American and Euro
pean countries is in reality necessity
to stabilize currency and commercial
and industrial conditions in such coun-
tries.
Fairly large State and municipal Of
ferings Of last week included $2,OO0,O0O
Of Michigan's bonds. $2.00O0C0 Of Cleve-
lands 51ss. 100000 Of Butte's IS. $780,
900 OF Norfolk's SIS and $1.52s,000 of
Winnipeg's 6s. Municipal bond men say
that there is a little easing up in the
demand for that class of security,
which Is not surprising after the month
Of excellent business in them just en-
joyed.
An issue Of s2.7oo.ooo Of Dallas county.
Texas, 5is per cent, fifteen and half
year average road bonds will be
awarded to-day. Toward the end of
the month Philadelphia will offer about
$12.000.000 Of its 5N per cent. bonds and
Sacramento. Cal. will offer $5Oo0O O0o
of its So per cent. eighteen and three
quarter year average bonds.