The New York herald., 1921-02-21
TOTAL Is HALYED
IN NEW FINANCING
Lull Welcomed by Many Brok
ers-Inyestors Become
More Critical.

For the first time since the stream OF
new capital issues started four or tve
weeks ago there were signs Of a slowing
Up In the investment demand last week.
The offerings of new securities which
were made by local bankers had to be
pushed with more energy than necessary
during the halcyon days OF the early
part of February and the end of last
month. Investors appeared TO be exer-
cising more discrimination and were not
inclined TO buy any financial Offering
shot at them by bond houses. This lull
in new financing was welcomed in bond
circles, and dealers took advantage OF
the period Of quiet to clear their shelves
OF whatever had accumulated during the
last few strenuous weeks.
Total new financing OF all kinds last
week was little in excess Of S63,000,-
600, which is slightly more than half OF
the total for the preceding week. In the
second week OF February offerings
amounted to s125,OoO.Oo0. and in the
week before the total was s116,000, GOO.
The heaviest week OF new financing on
this movement was the period ended
January 81. during which week $3.50, o,o0o.-
900 of foreign and domestic bonds were
placed with investors.
s24, 900, 900 per cent. twenty year loan
OF the Republic OF Chile. Although the
terms OF this loan were attractive it ap-
parently Is taking some little time for
the investment market TO digest this
issue. Subscription books for the Chilean
bonds were opened on Wednesday. and
up to noon on Saturday no announce
meut of the closing OF the books had
been made This caused no comment,
however. as it was expected that the
actual purchase OF this issue by investors
would be slower than with some of the
attractive domestic issues. Indeed. that
the Chilean Republic could obtain such
large sum here was regarded as a
highly significant indication, and the
bankers handling the financing expressed
of applications for the bonds received.
Some Large New Issues.
An issue OF s10.oO0,oO0 71a per cent
gold notes OF Deere & Co, manufacturers
of farm machinery. offered on q 765
basis, was quickly taken. On the other
hand 1t took longer to place 5000, 900
ten year per cent. sinking fund gold
notes Of the De Laval Separator Com
pany, which were sold on a basis OF S26
per cent. Some other fairly large issues
were SS.000.000 Chicago sanitary district
serial per cent bonds, $1,000. 900 Mas
sachusetts military service loan 515 per
cent notes and s4,000.000 Follansbee
Bros. Co. first mortgage twenty year
sinking fund per cent. gold bonds.
The General Petroleum Corporation
sold to bankers $500 900 ten year per
cent. bonds last week. and these will
probably be offered in the next few days
An offering OF s10,000.000 Z per cent
guaranteed and participating notes of
the Empire Oil Purchasing Company, a
new company, will also be made this
week The s1.S00.000 OF 6N per cent.
equipments OF the Missouri Pacific Rail
way, authorized by the Interstate Com
merce Commission, will probably be
placed privately. An issue of 81, 500, 600
Western Maryland Railway per cent
equipment gold notes was sold last week
The Portland FIGURING Mills Company
recently sold $4,000 900 OF FIRST mort
gage per cent. nfteen year sinking
fund gold bonds to local bankers, who
will make a public Offering OF them early
this week. The most interesting piece
ot financing this week will be the Amer
lean share of the f6.000.000 sac Paulo
loan. amounting 20 $4,000. 900. It Ia
believed that subscriDtion books of these
bonds will be opened about the middle
OF the week This loan is in the form
OF fifteen year 8 per cent bonds. The
Offering price. it is expected. will be
slightly below par. The total loan sold
by the State of Sac Paulo is divided into
three parts. One portion OF It will be
sold In London, another in Amsterdam
and the third In New York.
The fact that the Investment market
appeared to have lost some of It's Vi
taiity last week did not In any degree
discourage bond men, who pointed out
that a rest was In order after the alb
sorption Of more than $3.50. 200. 900 OF
new issues. Great activity In the bond
market is expected after this large
amount of securities has been thorough
ly distributed and digested
Heavy New Financing Expected.
II Is predicted Il at the volume Of new
financing this year will almost equal the
huge sum fioated in 1920. the record
year Scattered throughout the year are
railroad maturities aggregating $685.
39S,495, and II Is thought that the bulk
OF these will have 10 be refunded. IL
also Is likely that refunding operations
will have to be undertaken to provide
funds 70 pay of the City OF Paris loan
Of $50, 900 900, due In October. and the
United Kingdom OF Great Britain and
IfeiaDu flOV.uOV,uUV OR pcI Scuh- vollur.
due November /. 1921.
Municipal bond specialists are making
great efforts to reduce their stocks In
hand I'm anticipation of n large volume OF
State and city financing later In the
year. II Is known that there will be
numerous offerings of highway and SOL
dier bonus bonds before the end OF the
summer. including New York issues. The
large blocks OF municipal bonds thrown
on the market In the last few weeks have
proved somewhat OF n burden TO dealers.
who have been compelled to dispose OF
some bonds TO the public at concessions.
Municipal bond men complain that their
best customers--the country banks--arc
holding back in anticipation Of build
ing boom, when they hope TO lend large
sums on nrst mortgages
Trading In old line bonds was ex-
tremely narrow last week, with the vol
urna OF business decreasing daily. The
price trend In practically the entire bond
list was toward lower levels. A feature
Of the market last week was the sale OF
flrst-seoond Az per cent. Liberty bonds
at par for the FIRST time IN longer than
twelve months.