The New York herald., 1921-01-24
CITY FINANCING OF
WEEK, SSS,OOO,OOO
New York Bankers Get Awards
Of NEUTRALITY-SUSPICIOUS.
Large Offerings.

The most interesting development in
the investment market during last week
was the large increase in municipal
financing, which exceeded S33,000,0
New York banking syndicates were
awarded issues by the following cities:
Detroit. s10.126,000 Cleveland, $5,000-
600: Brockton. $500, 900; Akron, $1,000
900; Goldsboro. 1927 900; Chicago, $11,-
455.000. and Rochester, S4,225,000
Those bonds were offered to the pub
lie at prices yielding from 5 = to per
cent and were remarkably we'll taken.
In the case of practically every issue the
syndicate was announced as closed on
the day on which subscription books
were opened. The Cleveland bonds
were school district per cent. coupon
bonds. dated January /, 1921. and due
in 1922 to 1941. both inclusive. The
Akron bonds bore interest at the rate
OF 51a pr cert, the Chicago issue at
4, the Rochester bonds at 5 and the.
Detroit issue at S. u and G.
One or two other large offerings by
local bankers included s3,60O000 Of
Mississippi River Power fifteen year 7
per cent. sinking fund gold debentures
due in 1885, yielding per cent, and
$8,000,000 of per cent. sinking fund
convertible gold bonds. yielding about
8.45. of the Barnsdall Corporation
The latter were well taken, the bankers
report, despite misgivings entertained In
certain quarters about the wisdom Of
offering large block of oil securities at
this time.
Considerable interest was displayed
in the pending offering of $2.750 900 of
the city of Manila 51as sealed bids for
which will be opened in Washington on
Tuesday. 1t is understood that several
New York syndicates will put in bids
for that issue. Negotiations we're be-
gun by the Paris and Orleans Railway
with local bankers for a loan of 50,-
100000 francs. 1t IL understood that
100000 francs, or approximately
100000 of those bonds. will be offered
to American investors soon.
An. offering of s25O.OOO, 900 of Treas
ury certificates of indebtedness was
quickly oversubscribed. For those GER
tificates corporations had to compete
with individuals seeking a short time use
OF funds at 5 u and 6 per cent. The local
Reserve Bank addressed a letter to mem
be- banks in this district suggesting that
rasy take advantage of the present ex-
cellent demand for Treasury certificates
10 liduidate their holdings and reduce
their loans at the Reserve Bank.
The activity noted in banking circles
with regard to new underwritings last
week is expected to continue. Numer-
Gus large pieces of financing are pend
ing. 1t Is probable that a Norwegian
loan OF approximately $4,000. 900. which
represents a Joint loan to certain
municipalities in that country garan-
teed by the Government will be floated
In New York soon. It Is stated on good
authority that the Norwegian Ministry
or Labor has undertaken to examine
the loan requirements OF cities in need
NJ oil fAA totn a.
development enterprises. The Belgian
loan of s30.00o,O00 will be offered to the
public tomorrow
The upturn in the bond market which
started at the first OF the year con-
tinued throughout the week with Gov
ernment bonds the real feature. The
persistent firmness OF Libertys In the
face OF rather heavy offerings surprised
the dealers who sold out on the theory
that the advance had gone far enough.
They underestimate. however. the po-
tential demands OF savings banks, in
stitutions and small investors. All Lib
ertys and Victorys touched new highs
for the year toward the end of last
week, only sagging off a little under
the influence OF a stiffer money rate.
Some moro active Government issues
sold for more than points more than
1905 last quotations.
The recovery I'm bond prices was not
confined to Government issues. but en-
compassed practically the whole list.
Early in the week local traction bonds
attracted attention by making sub
stantial gains ranging as high as
points. That upturn was due to an
nouncement that the effort for in
creased street railway fares would be
resumed. In a general way it was dis
covered that there was tendency on
the part of investors to shift from
short term issues to long term Issues.
Railroad bonds were in particular de-
mand, and such issues as Atohison 4s,
st. Paul refunding qfs, Southern Pa
cific refunding 4s and ST. Louis and
San Francisco prior lien 5s were picked
ont for investment