The New York herald., 1921-12-05
REALIZING Is BOND
MARKETS FEATURE
Speculat0r Is Willing to Take
Profits at Present Level
Of Prices.

An interesting phase OF last weeks
bond market was the apparent willing
ness of spectators TO take profits at
present levels. 1t Is generally conceded
in investment circles that speculation
has played a large part in the remark
able rise in bond values in recent months
and that several more marketable issues
have been held in sizable blocks in semi
speculative hands
That there was much profit taking
last week was apparent to all observers.
but 1t cannot be denied that prices held
up remarkably well under the pressure
of realizing sales fractions were much
heavier than they were in the preceding
week and showed an increase of about
S40.000.000. The total of last weeks
bond sales was about 1929. 100000, but
fully s75. 900, 900 of that total was ac-
counted for by the United States war
bond group.
New 'orings OF bonds were slightly
under of the preceding week, but
the total was large enough to cause
oomment. New issues for the week
aggregated a little more than $4,000
900. which included an issue of $780,
000, 900, and another OF $t2,500. 600.
The larger issue was the New York
Edison Company's first and refunding
mortgage 61as, which We're snapped up
eagerly. leaving requirements OF many
dealers unsatisfied.
The market for investment securities
is still good and there are no signs of
congestion. The market will be tested
further In the next few months. how
ever, as 1t Is practically certain that
large offerings OF railroad and foreign
government bonds are to be made.
In ths money market very little
change was noted In call or time rates.
and there was only a fair amount OF
TO slacken and it would not be sur
prising If money rates eased further.
On the other hand if. as it Is fraely pre-
dicted, business revives in the new
year, money will again begin to flow
back into Industrial channels with Il
resultant tightening OF the loan market
Another factor to be considened in rela-
ton to money rates is the tendency of
large Industrial interests to consolidate
Mergers are being seriously discussed
in the steel, the oil and the coal trades
IL such consultations be consummated
they would involve large sums of
money.
An interesting point made by bond
authority Is that investors pay too much
attention to the marketability of 4
bond There has been a mad rush to
buy active seasoned bonds listed on the
New York Stock Exchange and which
ara outstanding in large amounts. with
the result that the yields on bonds of
that character have been cut down dis i.
proportionately. 1t is hard at this timo
10 pick out sound bonds listed on the
Exchange that yield more than or 51k
per cent. yet inactive bonds Of smaller
issues, just as well secured, are still
selling on z1s or an per cent. basis.
1t is pointed out that mark liability
should not be overstressed by peonle
who arc really looking for an invest
ment and not for a specula ton. Those
who actually wish to buy incomes
should not be worried about bond mar
ket fluctuations. Indeed 1t seems that
they would be batter off with bond
not SO actively dealt in. Certain smaller
bond issues, particularly moro recent
ones. have excellent ratings. are well
secured and In ;ssyeral instances con-
stitute their Issuing conpany's only
funded debt. Such bonds always can
be sold with very little trouble even if
they are not listed on any exchange.
The history OF Wall Street shows that
there never has been q period when a
sound bond could not be easily mar
lseted. In that connection it must be
realized that an Increase In derns nd
for inactive bonds would automatically
create a better market for them.