The Washington herald., 1921-04-10
BETTER DEMAND
NOTED IN WEEKS
BOND DEALINGS
Small Amount Of Undi-
gested Issues Now
On Shelves.
LOW RATES FACTOR
Interest Renewal Goes to Low,
est Point in IS Months
During Past Week.

There was a feeling in the bond
trade at the close of the week that
better prices and an improved. de-
msnd are to be realised In the fu-
ture for high grade bonds. Prices
already have moved up substantial
Iy and one of the principal features
In connection with the situation Is
that OF the comparatively small
amount of undigested securities on
the shelves Of dealers. In one large
investment house the fact was as
certained that at the close OF busi-
ness on Thursday II had but one
bond unsold on its shelves and was
short one bond. II a situation simi-
lar to this obtains generally
throughout the trade 1t Is apparent
that the answer Is higher prices and
an Increased demand for securities.
Low Rates Prevail
Obviously the low interest rates
which have been established during
the week have been instrumental IN
influencing a better condition In the
bond trade, the renewal rate on the
New York Stock Exchange having
eighteen months, and loans were
made of the exchange at level
somewhat lower. The demand for
money for financial purposes has
narrowed down to such an extent
that the daily turnover on the New
York Stock Exchange for call FUNDS
has been only about s1o,0oo.ooo a
day as against normal loans OF
around S30.0o0.000 a day. 1t was
stated also that a considerable e
amount of out of town money had
been sent to this center for loantng
and this added to the ease IN the
market. Because of the high In
terest yield on many securities, It
Is upparent that borrowing in the
open market could be made for the
purpose of purchasing either bonds
or notes which would result in q
benefit to the borrower on the IN
terest operation alone. When funds
work easy there always Is a GER
tain amount of borrowing Of this
character particularly IL 1t is pos
sible to secure accommodations for
q given period.
Public Utilities strong.
Bond houses, specializing in pub
cellent business during the past
week, and called attention to the
Improvement which has been re-
corded in quotations for this class
of securities. The public utility sit
uation has undergone very decided
Improvement and 1t is well-known
that the corner has been turned In
the utility field and from now on
betterment is expected. Rates nave
been increased and the amount OF
borrowings by this class of cor
porations Is proportionately smaller
than that. of either industrial or
railroad companies. Therefore, the
outlook Is viewed with considerable
satisfaction in the investment quar-
ters.
Maturities falling due within the
next few months of numerous util-
ity corporations are being refinanceo
through the issuance OF long-term
securities. For instance, the matur-
ity of Toledo Traction Light and
Power notes on December ! next are
to be cared, for through the Issuance
of a Iong-term bond at an attractive
rate, it being understood that pres
ent holders will be given the privi-
lege of exchanging for the new Is
sue on a highly attractive basis. II
is expressed that an ofhcial an
nouncement OF this new financing
wilf be announced directly.
Industrials.
: Industrial bonds also have shown
substantial Improvement marketwise
recently; and the demand for them
has increased, particularly for some
of the securities, carrying 6k aid Z
per cent coupons, with the result
that prices as compared with the
low levels of a short time ago now
represent. an advance of a few
points. General expectation in in
vestment circles is that the improve
ment thus far recorded will not only
be maintained, but will show FUR
ther betterment as time goes on.
The demand. for money for CONNER
cial purposes has narrowed down
considerably in recent weeks. ana
while the so-called frozen credits
have not been reduced as rapidly
as had been hoped. the situation in
this respect also has undergone a
change in the right direction and
the feeling is that money will con-
tinue in free supply in the future,
even the rates may not become ap-
preciably flower, than those now OBJ
tanning Therefore, the bond mar
ket situation is viewed with great
deal more satisfaction than was the
case q month or so ago. ..'-.-,...
In the railroad bond department
there has been considerable uncer-
tainty, which, naturally. has not
been without its direct influence
over prices of this class of securi-
ties. The railroad situation has
been manifestly bad for some time
past as a result of the controver-
sizes which have arisen between the
carriers and their employees and also
the rate situation. Some careful
students of general conditions say
that, in their opinion, railroad con-
ditions have become 50 bad that they
will improve before growing worse.
That Is to say that governmental
officials will realize the importance
of taking steps of 4 remedial char
acter at an early datesso as to over
'oeme the Objectionable features in
this resnecf -'s@- i