Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-11-20
Institutional Switching

1u0tIVutlOuoA o"ASCluu8
Bond market operations last week
we're such as to create greater di.
ysrsity of opinion as to the outlook than
for some time past. Those who usually
freely express opinions are disinclined
to commit themselves one way or the
other at the moment.
Although there has been a great deal
Of discussion as to the selling of bonds
BY institutions, attention is called to
the fact that, as of November 1, the
reports Of more than 700 institutions
Of tho country indicated a decrease in
Government securities Of around SIS. e.
900 900 and an increase in holdings Of
corporate issues Of around 5000, !.
900, indicating net change of between
$4,000, 900 and So, 200, 900. Naturally,
there has been some switching of se.
curities by banks, insurance companies,
etc., but those best posted in the matter
profess to believe selling from this
source thus far has been comparatively
small.
One leading bond dealer stated dur.
ing the last two or three days he had
sold to corporations fairly sizeable
amounts Of corporate securities, which
was the first time in more than three
WSchb uc uou uOSlCCu u uCuIuuu
this source. Corporations are stated to be
but 1t Is evident the majority are hold.
ing large totals Of investment issues
and in some instances are finding it
expedient to employ idle surplus funds
in the purchase Of high grade securi.
ties in order to keep their money EN-.
ployed and derive satisfactory income
fherefrom
The Cuban Loan
Cuba proposes to pur out a $50.
000, 1000 bond issue and a rather novel
plan will be adopted In connection with
the Offering; namely, that Of asking
for sealed bids, thereby placing all
bankers desiring to participate in such
transaction on an equal footing. Some
surprise was caused over the announce.
ment the loan would be handled in this
manner.
While It is impossible to obtain any
accurate Information as to the exact
terms Of such loan, It 10 thought
to bs likely that It will be serial
issue. possibly running from one to
twenty years. calling for heavy amorti-
zaton during the first five years, par.
uSoeS!y ID part ok tH0 IunuS Uos
rived from tho Offering Is expected to
be utilized in the liquidation Of deficits
in budgets Of that country up to July
] O. the current calendar year.
Il will be recalled that President
IAyas on July / last announced that
Government activities and operations
would be conducted in future as Of
that date, previous deficits remaining
to be disposed Of through one medium
or another later on. Since that time
the Government Treasury has shown
small surplus over expenditures, and
tho outlook there is now viewed with
greater favor than for q long time
past.
Brokers' Opinions
Newburger, Henderson 3 Loeb:
preciation of security values Of tho
last fortnight unquestionably have gone
far toward correcting the unhealthy
speculative position and have resulted
IN 2 substantial reduction Of the seri.
o9usly extended loan account. The. mar.
Ket, therefore, Is In a much healthier
condition, but apparently the adjust
ment is not yet completed, nor Is the
eng Of the liquidation in sight. We
fee!, however. II care Is exercised by
making careful study of earning position
anu future prospects, there are to be
found many bargains for long pull
among the representative seasoned divi.
aend paying issues. Many such oppor.
tunitles. we are certain, can be picked
oIt among the standard railroad shares,
whlch have displayed q more consistent
degree OF resistance than any other
groups. during the downward swing,
immediate movement Of the general
market Is likely to be feverish, con.
alctinG and confusing. Il would be In.
setesting to sec the market have \
resi- period which would enable making
~ NOR Dr.. sober consideration Of the exist:
Heeker 3 o., 1.-THE week ended
w,th dull market showing that the bull
ana ana bear forces are deadiocked for
.ns present. The election results were
supposed to forecast any amount OF
radica! legislation. Il seems far.
.stcned to discount what might happen
more than a year hence, especially as 90
many OF the things most feared have a
WY OF not happening at all. A calmer
,x.sw OF the outlook will result In an
maapscvement ma IN prices after the dull.
a's wears itself out"
THE TRADER.