The New York herald., 1921-08-08
ALL BOND OFFERINGS
ARE QUICKLY TAKEN
Money Is Abundant for Invest
ment Despite Advance in
the Loan Rate.
Average Bond Prices
August q. 1921.

The unexpected stiftenlng OF tne
money market without any satisfactory
explanation rather upset calculations in
the bond market last week. The renewal
rate for call loans advanced to per cent,
against low rate OF ~ per cent. in the
week previous and time loans were
not obtainable at the low rates
prevailing for some TINA This
caused a check to the upward move
ment in bond prices. although there
was still an excellent demand for bonds
of many classes According TO the best
banking opinion, however. quotations last
week did not reflect the actual money
position of the country, and 1T is stu
maintained that there is an abundance
OF capital for investment purposes.
New financing for tine week justified
this theory. as distributing bankers ap-
parently had no difficulty in selling all
they had to offer. The offering OF
5000 O00 900 Treasury certificates was
more than three times oversubscriped'
and New York alone accounted FOR
more than half OF the total SUBSCRIPTIONS.
Philadelphia ranked second, Boston
next and Cleveland fourth. There Is
not expected to be any further issue OF
certificates before the third instalment
tax date of September Is, when maturi-
ties are heavy.
New issues last week totalled approx
imate!y s46, 100000, against $6o.0o0,O0O
in the week before An Issue or $2b.-
000 600 Swift & Co. per cent. ten year
gold notes, the largest item. was quickly
oversubscribed The proceeds will be
used in retiring s25.00o,0o0 s per cent.
gold notes due August 10, 1921.
Other important offerings were:
$6, 900. 900 Southern California Edison
general and refunding mortgage per
cent. bonds $3,5o0,0o0 Tidal Usage OIL
Company ten year per cent. bonds.
81, ,S91 900 City of Hoboken school 6s
So. 500, 900 Empire Tank Line Company
ten year s per cent. equipment trust
certificates, and s5.o00,000 first mort
gage twenty year per cent sinking
fund gold bonds of the Otil Steel Com
pany.
In addition dealers reported that they
were able to rid their shelves OF num-
erous odds and ends of previous issues.
Large houses OF issue are justly proud
of their record in the last few years,
while few failures have occurred in the
disposal of new bond issues recently.
Some issues largely because of their
size have moved slowly. but they were
finally distributed and placed In good
hands. az shown by the market for the
bonds thereafter.
Almost every recently created bond Is
selling materially higher than the orig
inal Offering price. A few examples are
Canadian Northern 6Iss issued at
96la. which went to around 9S V Chi
cago and Northwestern 61ss. 99h, to
101Hs c., Il. and @. joint 6 las, o6 " 70
100a4 Goodyear Tire IS, 80 to 10i u
Northwestern Bell Telephone, 96iS to
1925. and u. S. OF Brazil SIS. 971a TO
10oM. Dozens OF other instances In
clude industrials, railroad, public utility
and foreign government bonds.
Many OF the largest borrowers In the
municipal market have been eliminated
so thai present outstanding issues will
have little competition for some time.
This week includes few sales OF impor-
tance by cities and States. Cleveland
has asked for proposals up to September
10 for S5.o00.0o0 6 per cent. one TO
twenty year serial bonds. West Virginia
IS offering $4,000. 600 road bonds on
Wednesday, but these are So and cannot
be sold for less than par. As an illus
tration OF the changed condition OF the
municipal market the case OF New York
state bonds Is cited. Two months ago
sal. 800. 900 Of these were to be disposed
Of, while to-day there arc possibly only
5000. 900.
Proposals will be received by tho Blu
rcau of Insular Affairs until August II
FOR $4,000, 600 per cent twenty year
Philippine Government public improve
ment coupon bonds Negotiations be-
tween Uruguay and a group OF New
York bankers are expected to be COM
pleted any day for loan Of between
$4,000 and $4,000. 600 for the pur-
pose OF installing a modern telephone
system in Montevideo. With these ex-
ceptions and one or two small public
utility issues the horizon is bare OF new
financing.