The Washington times., 1922-07-10
BOND PRICES
CONTINUE ON
UPWARD SWING
No Sign Of Abatement in Up
ward Course of High
Class Issues.
By MUNROE ROBERTS.
Copyright. 1922. by Cosmopolitan News
SaryIca

BY MUNhOE hOBEhIS.
Copyright, 1922. by Cosmopolitan News
ServiceD
NEW YORK, July 10.-Econoin-
lists have been attempting to prove
by charts and tables that. notwith-
standing the general rise IN the
prices OF investment bonds during
the past six month, they are really
cheaper today than they were six
months ago. 1t is a case Of eating
your pie and having II. too.
In the long run, income Is figured
not so much in dollars and cents as
in the purchasing equivalent Of
these money taken. A great many
people depend almost exclusively up
on the income from investments as
their means OF livelihood and there
is little comfort for them in a larger
monetary yield on their securities
II commodity prices advance much
more rapidly. During the past year
or so, the purchasing value Of the
dollar has increased from 40 per
cent TO 80 per cent and their total
income is worth that much more in
its equivalent value. From this
standpoint, therefore, the investment
securities are entitled to a higher
There are no signs of abatement
In the upward course OF bond prices,
especially in the high class industrial
railroad and public utility issues,
present levels OF which compare
favorably with those which prevailed
at this time last month. The rein
vestment demand has made IL DOS.
sible to float a considerable number
OF new issues as well as to absorb
large floating supply on the listed
bond market.
1t Is stated that the Cuban cabinet
has arrived at the conclusion that
q new loan is the only possible
expedient for extrication from the
financial embarrassment into which
that government has fallen. The
secretary Of the Cuban treasury
has been instructed TO submit his
plans for new loan and for
ascertaininR the possible sources of
new revenue to meet interest and
amortizat ton charges. Estimates OF
Cuba's unpaid current obligations
run as high as 100000, 900. This
figure. however. includes $30. .000, 900
! In doubtful claims. 1t is quite likely
that a new loan in the amount OF
around $50, 100000 would meet all
the present requirements and that
such a loan could without much diff.
ficulty be taken care OF in Ameri.
can financial markets.
One of the most active depart.
ments Of the listed bond market
during the past few weeks has been
that OF foreign government bonds.
with British securities TO the fore.
The United Kingdom 5h per cent
bonds are now selling at a price
which should be considered quite
, complimentary to the progress of
business reconstruction in the Brit
ish Isles. In this connection should
also be considered the determinat ton
OF the British government to meet
all her interest payments on the
war debt, regardless Of the action
taken by other European countries.
French and Belgium bonds have
also been strong. while the securi-
ties of European nations like
Switzerland, Norway and Denmark
have shown an ability to advance
with the rest Of the market.
A syndicate composed Of Dillon.
Read and Company, Wood. Gundy
and Company, and Dominion Secur-
tiles Corporation, Ltd. are offering
new issue Of S3,500.00 province
OF Alberta. Cahdada five year 81
per cent gold bonds dated July 1,
1922. and due July 1, 1927. These
bonds are the direct obligations OF
the province Of Alberta and are
payable principal and interest from
it's general revenue. The province
OF Alberta. fourth in area among
the Canadian provinces, IL five
times as large as the State Of New
York. The bonds are being offered
at a price Of 100 and interest to
yield $50 per cent.