The New York herald., 1922-09-18
NEW BOND ISSUES
In HEAVY VOLUME
Market Most Active Since
Spring and Is Likely to
Continue Brisk.

The market for new bonds suddenly
became very active last week after hav-
ing experienced three months period
or quietness. A flood of fresh offerings,
which had been stored up for some time
awaiting an opportune moment for
distribution. kept falling on the market
until at the end of the week their ag-
gregate value measured approximately
s175. 10000 Prior to last week such
volume OF new bonds In one week had
not been seen since the boom OF last
spring.
In the past month the weekly aver
age OF new bonds has been between
$10.0 900 and so. co., 900. so that the squirt
last week was striking. The offerings
last week were apparently we'll timed,
as the ready response from investors
proved that a large store OF invest
ment funds had piled up in the last six
CT eight weeks All new issues were
quickly oversubscribed.
The list of new bond offerings last
week represented all classes OF bor-
rowers. There were obligations of
long list OF cities and States, out the
largest individual blocks of bonds were
In the industrial group. The easy
money situation was reflected in the
lower rates of interest carried by the
new bonds For the first time since
the war industrial bonds carrying
per cent. coupon were offered and
quickly purchased by investors A block
of equipment trust certificates OF the
Illinois Central Railway placed privately
OH 4s5 per cent basis bore interest
at the rate of AZ per cent, new low
record since the war.
T,, n n
New York State 4As was placed at
prices yielding $40. while block OF
Buffalo. n. ". bonds was offered on
$50 to 3.S5 basis. In this connection the
Bond Buyer said: THE placing of New
York municipals on 3.85 per cent. to
4 per cent basis means that the market
has definitely advanced over any pre-
vious high level reached since early In
1917. While the highest grade stuff is
not reported as moving rapidly there is
no reason to question the ability OF the
market 10 absorb all the bonds offered
at this price level and even continue to
advance. On the other hand there Is a
limit which cannot be so very far away.
During the next six months the most
cautious buyer should stand the best
chance OF showing the largest net
profit
The largest industrial issue offered
was $50. 100000 Swift & Co gold notes
bearing per cent. coupon and Of
fered on $40 per cent basis. An
issue of $25.000.000 Sinclair Pipe Line
Company per cent sinking fund gold
bonds also was placed on $40 per
cent basis. In the public utility group
the most important offering was S2l.-
600, 900 Kansas City Power and Light
Company first mortgage per cent gold
bonds sold at a price to yield investors
about SAT per cent. The largest muni-
cipal offering was s5,000.000 State of
Oregon soldiers bonus and 4A per
cent bonds An issue OF S6.000,000 st.
Louis and San Francisco Railway Com
pany per cent. equipment trust cer-
tifcates constituted the largest Item In
the railroad group.
Foreign offerings were confined to
Canadian bonds. There we're reports of
forthcoming European loans, but moth
ing definite developed. Preparations for
some Latin American loans have been
reported. The first from that source Is
likely TO be the $50 1000, 900 Cuban loan.
The outpouring of new bonds is likely
to continue for several weeks, according
to authorities. 1t is known that several
railroad and industrial issues are being
prepared for the market. and 1t Is be-
1ieved that they will be absorbed easily.
Despite the large increase of miscel-
laneous offerings of new bonds the Sec
retary of the Treasury was able to sell
last week a new issue OF $200,000,OOO
Treasury certificates bearing az per
cent interest. The state OF the invest
ment market was shown when the GGov-
ernment received subscriptions about
$500. 000. 900 In excess OF the amount OF
certificates available.