The New York herald., 1921-12-12
VIRILITY LACKING
{ IN BOND MARKET
last Weeks Sales Show Drop
Of $4,000, ,a00-Prices
Also Recede.

"a. Tn< b1nI market OF last week lacked
throughout the rsadjustmSnt which be-
gan In TITO summer. That lack OF
sr-onsth xaa more because OF want OF
purchasing power than on account OF
selling pressure. anc prices receded
gradsE.ly daily as demand was not large
IrAnxaor.1ns IN bonds on the New York
sss,cx Exchange sDs the weel< were some
thing like s2a.o00.0o0 less than they
wnro in the preoodinE week.
Tho rrevxiling assumption So that In
.ssss,ors want moro definite intin,atton
thss 90 monsy market will continue
% css> before committing themselves
further.
~ Under the circumstances It is not sur
or.siEg that investors displayed greater
willingness to purchase new securities
of.ered. which continued to yield COM
,1iparatlvely high incomes rather than old
= linc boads, which offered less attractive
yields. There were no signs of decreased
activity In the msrket for new issues,
b and the situation was not expected to
chanse for several months. 1t Is true
|. that the aggregate OF new bonds was
\ somewhat smaller, but those offered,
oout $50 600. 900, found ready market
y This largest new issue of bonds was
y sI6.424.0O0 of the Oregon Short Lines
+, Is, offered on $40 per cent. basis The
roxt most important in point of size was
4 SIC, ,000, 5000 of the Public Service Cor
II loration OF New Jerseys per cent.
bends, offered on 40 per cent. basis.
There we're also two other sizeable Of
+ farings-s5, 100000 OF the National
Acme Company's 71as and S6,Ss1.o00 OF
the city of Rochesters ANS.
\ Much has been said and written In
Wall Street regarding the return of
!, ,ao.lcy to near normal levels. In view OF
I, tie manor IN which money rates have
4. declined IN the last few weeks and the
ras,Il;ant climb OF bonds to their present
ms IN levels. the question of what Is nor
NAL IN the money market has been
raised. Call money rates last week
ranged betwsen AZ and per cent,
slightly firrnsr than they were in the
preceding weeA, while time money
ranged between . and 5M per cent.
Those rates are IN contrast to range
&. between ~ and per cent. for money
cr call on the New York Stock Ex-
change in December, 1918. Time money
N the corresponding week of December,
1913, was quoted at between 43 and b
ne. cent. Longer ago, In January, 1913,
call money was quoted at not exceed
Ing 8 per cent and time money at ga to
az psr cent. At that time, however, an
unusual condition prevailed in the
money market because of a slump in
business similar to the present depres-
sion.
Most authorities agree that there Is
rot likely to be any great change In
business for considerable time, at least
not until summer, which, OF course,
should mean plentiful supply or lunos
s.rfor investment. The question of new
: financing must not be overlooked. how
frver. and it Government and corporate
\ demands are as large as anticipated
Z money rates might be maintained at
z fairly high levels.
y IL is generally conceded that new Of
%rerings of bonds will continue to be
placed on the market as long as the IN
Wasting public displays readiness to take
Item off the hands Of bankers. Numer-
Gus railroad and industrial companies
s-e waiting to undertake new financing
.snd there are foreign Government re-
1uurements.
~.f Another question that appears to be
.yagitating the minds of those unable 10
gtet away from the markets speculative
= side is whether or not there will be
z heavy selling for tax purposes this year.
1T is reasonable to suppose that there
ssss III not be any selling of that charac-
y Ter for the simple reason that few peo-
r,ia have losses to record in the bond
n market at the end OF rising prices. 1t
y is hardly likely that there Will be any
4 very heavy profit taking either until
Z aftei. the turn of the year. because prof
its taken next year will be paid for
4 Under the new Federal revenue act,
z. ,,,bicJ, is more lenient than the old one.