The New York herald., 1921-09-12
INVESTORS EAGER
TO BUY NEW BONDS
Ss5.OO0,OOO in Offerings
Snapped Up by Public
During Last Week.

Further PROOF OF an aOshoahSS -
new capital awaiting investment was
the way in which new bonds were
snapped UP last week. More than $780,
100000 OF new railroad Industrial and
rnsx.ss::Sal bonds offered to the public
IN that period was only little less
than the total OF the preceding week.
Sizable offerings of bonds were made
hy banking houses nearly every day
and all we're disposed Of quickly. In ad-
;tfon to the foregoing new financing
there was an Offering OF about 5000, ,ooo,-
600 of United States Treasury Notes
and Certificates, the notes bearing inter-
est at the rate or ~ per cent. and run
ming for three years and the certificates
running for six months and year and
carrying interest at and 5A per cent
respectively.
The reserve banks were deluSed with
subscriptions for the notes and certin-
Gates, and 1t is believed that there will
be a good sized oversubscription to them
To that issue in the New York district
alone the biggest amount ever reported
was subscribed. The last previous Of
fering Of United States Treasury Ger
tifcates was in June and amounted TO
$500 oOO. 900. It will be recalled that
that Offering also was heavily oversub-
scribed to.
Business in bonds in the New York
Stock Exchange was in greater volume
last week and Thursdays turnover, the
largest In more than two months, was
about $4,000, 900. Nevertheless trading
IN bonds Is still much smaller than II
was a year ago and bond sales or the
year are many millions under the total
for the corresponding 1929 period. IN
dicating that there Is plenty OF room
FOR expansion in the bond market. In
deed investors, forced to liquidate their
bonds last year, have hardly begun to
replace their holdings and there IS
large potential reinvestment demand
Foreign securities. which had been In
small request for considerable time. be-
came very active last week and numer-
Gus new high records for the year were
established in that group. United states
Government war bonds also were de-
cidedly more active, and Victory AZ
crossed 30 for the first time this year.
THE frst important rail fiotation ir
MANY weeks came last week in the shape
Of s10000.000 of ten year collateral
fr,,st 6Ih per cent non-callable bonds oi
che Minneapolis, ST. Paul and Sault Ste.
Marie Railway Company. Subscriptior
hooks for that issue were closed at 20
on the day OF It's offering. with requests
for 100000, 900 or more Of the bonds.
A s1o.0O0,000 issue OF the first closed
mortgage twenty year bonds OF the Fisk
Rubber Company was snapped up almost
rs quickly. Except for a 900 issue
of the Standard Gas and Electric Com
pany's III per cent. sinking fund gold
bonds, the balance OF the total was made
up OF municipal issues.
The largest municipal issue was
s4.1s9.00o of Jersey City's 5tas and the
next in size was an issue of $4,000. 900
OF the State OF Michigan's s. Us. New is
sues of municipal bonds are coming
along very slowly and the floating sup
ply in that market has been reduced &c
very small proportions. Municipal bono
specialists expect to see prices of munici.
pal issues marked up little as result
OF that condition. Indeed, an actual In
stance OF marking up occurred in the
case OF the State of South Dakota's 8
per cent bonds. The bankers offering
the unsold balance OF those bonds raised
their price TO 104& and interest, TO ylelo
about $50 per cent.
a 5M per cent. basis. Another bullish
development In the municipal market
was the cleaning up of the market for
the s3l. 800. 900 Of New York States 5s,
which have been on the market since
early in June. The banking syndicate
which originally offered those bonds an
nounced that the Offering has been dis
trlbuted.
There will be probably several largo
pieces OF new financing within the next
few weeks. Many Of them doubtless will
be by foreign governments. Argentina
has reopened negotiations with Ameri-
can bankers for a s50.oo0.o00 two year
per cent loan and II is said that the
city OF Rio de Janiero is In this market
for a loan of s1o,00o.00o to s12.00o.000.
The Province OF Ontario will do about
$4,000, 900 of financing in Canada be-
fore the end of this month, but subse-
uuently will need another $4,000. 600,
which may come to the New York mar
ket Other Canadian issues on the way
are s40oO,0 900 OF Toronto bonds, an Is
sue OF Toronto Street Railway bonds and
several issues of Prairie Province bonds,
all running into several millions.
Reports that the new issue OF bonds
hy the Louisville and Nashville Railroad
Company would be made soon A,re cur
rent in Wall Street at the close OF the
week, but II is understood that there will
be no offering OF those bonds until the
Interstate Commerce Commission will
have announced its approval of that
project. The money market was devoid
OF striking features but indications of
continued easy conditions and, therefore.
lower interest rates. were plentiful. Call
money was obtafnable In liberal amounts
at and 5h per cent and time money
WAS more freely offered