The New York herald., 1922-11-06
HALT IN LIQUIDATION
GIVES BONDS ALIFT
Recent Declines Have Had a
Healthy Influence on Mar
ket, Say Bankers.

The demand for bonds, new or old'
was not particularly keen last week. out
a halt In the heavy liquidation that hau
been a depressing influence for severai
weeks enabled prices to recover slightly.
Toward the end of the week distinct
;r,nrovement In the bond business was
noticed and on Friday dealers reported
that their shelves were rapidly oeinS
cleared. Municipal bonds especially were
said to be moving fast.
Recent declines in bond prices had
healthy influence on the market. as high
grade investment issues had reached
point, bankers say. out of line with the
money market, with the result that In
yestors were not satisfied with the low
Weld obtainable and stagnation threat
ened. The return to more generous
yield basis has again stimulated vigor-
Gus investment demand That investors
are not inclined to climb for bonds was
shown by the rather slow distribution OF
the $4,000, 900 issue of Gulf Oil Corpor-
alton gold debentures, offered on $40
per cent. basis.
Other industrial offerings of the week
that we're sold at prices offering yields
ranging from 5.45 to 7.20 per cent. were
more quickly sold. The total of new
securities marketed last week was close
to s73,00O.000 A sizable increase o. or
that total Is likely this week, as to-day
close to s50,000,000 new bonds are in
sight. To investors will be offered to-
day s1S,0o0.000 twenty year external
per cent. bonds of the Republic OF Chile
and s1S.s05 900 Louisville Gas and Elec-
trio Company first and refunding mort
gage thirty year 5 per cent. gold bonds.
Greater activity in the bond market
Is expected from now on, and unless
corporations attempt to force the mar
ket IL Is believed they will find little
difficulty in exchanging their high cou-
pom bonds for those carrying lower In
terest rates. Bankers express surprise
at some assertions regarding the dim
Guilty of marketing foreign bonds here.
They say that there is, and always will
be. good market for obligations of
nations whose credit ranks high. 1t is
stated further that these nations win
not be compelled 10 float their loans at
per cent, nor even z per cent, for a
much longer period
In addition TO loans of FIRST class ma
tions many weaker countries will have
to be helped with American capital
bankers assert. In the next six months
OF so loans to Austria and Germany arc
not Improbable. IL Is said.
Tho $50, 1000, 900 Cuban loan Is not so
near as generally supposed. officials OF
the United States State Department
deny that the Offering has been ap-
proved. although such approval is ex-
pected any day. Even with approval
much work remains TO be done In ar
ranging the terms of issue and sale.
American bankers arc now in Cuba at
work on the details OF the loan.
More Government financing Is ex-
pected some time next month, and IL is
not yet known whether It will be In the
form OF long term bonds or certificates
Of indebtedness. Taking Into consider
alton the heavy new financing to be
done over the next few months and the
continued expansion of business. there
appears 10 be little basis for the theory
that money will become cheaper
wATEHTowN CHEESE MAukET.
WATERTowN, N. ", Nov 5.-Cheese
sales, 1000 boxes at "a 2.sa- ..........