The New York herald., 1922-04-03
BOND DISTRIBUTION
WIDE AND HEAVY
Street Handling Greatest I'm
derwriting- ,Ooo,o 900
Floated Last Week.

OF the $50 100000 Of new bonds rioa'ed
,n the last week s22,boo.ooo were mdus-
tr,a, oh,,~a lions. For the first time In
several months the output OF Dohas 7.
Industrial companies exceco1u
wee,r.s financing by any other group o.
companies. state. county ana muh''ipa-
,,n.nc,ry continued to shrink. tne
wss,x.s total being sisocc,oco. Approx
roately the same amount OF llnanois
was accomplished by public uthty cor
porations.
The largest individual offering wac
s,4 ooo 600 Of the North American Eolson
ron,n.rya q per cent. bonds. sold on .
90 per cent. basis. The Manaei euea.
Company disposed of ss.oco.VV OF i0
~ cent bonds at par and the Mense'
romnanv sold 5000 900 Of its per cent
honas !, eeL to 100. The sale OF N'oO'V"
of tha delaware and Hudson companys
~ ner cent. bonds on o.io per oene.
nasis was the largest piece OF raiiioau
rn.nc,ng The Erie Railroad SOLO
* o,o oo OF its consolidated rs on a 90
- cart basis. All offerings Went
DeT CENT beSSiS~
quickly.
This week will see the sale OF Sos =
largo blocks of bonds. notably tno Wv
York CentraTs s60.00o,000 re1unnins az
innrovement 5s, recently antnorlIeu ~
the Interstate Commerce CoIliI. nuu GI.'
.nd nrohably the 100000 Czecno-oo-
Va l-ian loan. There is not much munlc.
k,nai financing Immediately In signt' pu.
= s,,stained output of public utility ano
/ railroad issues Is to be antfcrpateo, -
cording to bankers, and ALSO
able foreign financing. vo~s
r,,.a ding IN bonds on the New YORK
Stock Exchange and over the county. c
4, ,s exceeding in volume ana INTENSITY
anything heretofore known "
the New York Stock Exchange In Marcn
wera saoo 10000. practically doubling
I transactions in the corresponding month
Z ~ last year. That activity mas Decn
acco,npanied by a rapid and sustained
rise in quotations. which places the aN.
erara price of representative bonds az
the highest point of the present upward
Z movement. The end Is not IN slgnt' eN-
merits affirm, because the chances ara
that easy money conditions VIII prevail
during the greater part OF the summer
sIntil August anyway. when Increased
ser sonal demands may be expected 70
!hoost rates. At the same time new II
.nancing viii be of a relatively moderate
amount. as less money for industrli
exnans,on will be required. Practically
ali necessary financing incident to the
great period Of deflation. inventory and
price readjustment has been taker
care of.
throughout the week was the outstand-
ing feature Many of our war loans are
at their highest prices Of two years AND
within striking distance OF par, goal
which they will reach much sooner
than some Of the most discerning stu
dents of finance thought possible even
year ago. The advances scored oy
second grade railroad bonds were strik-
( ing. some Of them being more volatile
than stocks and not without good rea-
son. Under the combination OF easy
money, rapidly improving railroad
earnings and bond market. which has
been inordinateiy depressed. the re-
bound has naturally been emphatic.
1t seems safe to say that the last eix
months has been the most active period
In Wall Street investment houses ever
known. Financing has been in greater
variety and more new individual bond
issues have been introduced than In
past booms Because business is dis
tributcd among more firms than ever
II may not be the most prosperous
period for Individual houses. but. In the
aggregate, the Street Is handling It's
greatest underwriting and distributive
business.
A point OF more than passing interest
and significance Is the wide distrfbu-
ton being effected in the case OF new
issues. Whereas a few years ago un-
derwriting syndicates usually disposed
OF an issue in blocks OF forty to sixty
bonds the average distribution has
been cut down to half those figures
(which means that small investors are
being reached. that there is less likeli-
! hood of bonds coming back TO the
Street once they leave II, and that the
\ tendency. often too prevalent. to sub
scribe to a large block OF bonds merely
/ to make a quick trading profit and a
resale, perhaps 10 some other dealer.
Is less evident. In many instances OF
late underwriting syndicates have dis
ltributed their bonds 50 thoroughly that
average subscriptions have amounted
Ito only five to ten bonds. Buying and
distributing groups as at present organ.
fized are much larger than they were
few years ago.