The New York herald., 1922-01-02
DEMAND FOR BONDS
SHOWS NO DECLINE
Indications That Offerings in
1922 VIII Be Increased by
Issues From Abroad.

Observers of the investment markets
fed with the trend Of events and ex-
pressed the belief that the first few
months OF this year would see a further
substantial demand for investment is
sues. The bond market of the week
exhibited nothing of sensational char
acter, but throughout the five day period
sandwiched between two holidays was
an appearance of suppressed vitality in
the bond list. Transactions were fairly
large and prices gradually crept higher,
finishing the week slightly above the
levels at the close of the previous week.
One feature was a new high record es-
tabllshed for Victory 4As.
New bond offerings were smaller than
In the previous week. but were still COM
paratively high for the time OF the year.
amounting ~ . little short of $40, 000,-
600. There had been some talk of the
investment market having again reached
the point of saturation. but there were
no signs OF IL last week. The distribu-
tion OF the new bonds went on as smooth
~ and easily as at any other time in
1921.
The largest issue of the week was in
-
500. 900 International Paper Company
series h first and refunding per cent.
bonds. which were issued on a per
cent. basis. The next largest Offering
was State issue--S7 900, 900 State OF
California highway bonds. One or two
moderate sized municipal issues were
put out.
Investment bankers did not press any
issue on the market that could be held
over the turn of the year without in
convenience, and consequently a large
total of new bonds confronts the mar
ket In the new year. Most OF the Inn
mediate new financing will probably be
done by foreign Governments and Amer
| ican railroads. The first foreign issue,
TO be offered early this week. will be
s40.000,000 Dutch East Indies bonds.
Several other large foreign issues are
under active negotiation.
The growth of the foreign bond busi-
ness In this country in recent years has
been notable, and the opinion Is ex-
pressed that II is still only in its in
fancy. At the close OF the year forty
seven separate foreign Government or
municipal issues were quoted on the New
York Stock Exchange. Foreign indus
trial and railroad issues have yet to
come. according to the best authorities.
tN6lTOdu OIltTeu ldSt Wteh
were offered on 5.75 or $50 per cent
| basis. This compares with per cent.
basis late In 1920. In the State and mu-
nicipal market prime new bonds were Of
| fered on about AIS TO "A 4.S0 per cent
basis. compared with $50 per cent
basis cartier I'm the year. Industrial
bonds yielded 6 per cent. against u
and per cent. a few months ago.
The municipal bond market in 1921
was an interesting study. For the FIRST
time In the history OF American mu-
nicipal finance the 1921 borrowings OF
! States, counties. cities. &C., through the
! issuance of bonds exceeded 81. 900. 600. 900
according TO statistics compiled by the
| Daily Bond Buyer OF New York. Last
years huge total of State and munici.
pal bond sales is accounted for by the
great increase in State financing fol-
| highway construction and for soldiers
bonuses, the high cost of building. and
in the last quarter OF the year by q
sharp advance I'm bond market values
which made possible the hotation oi
some important issues that could not
be marketed so long as the investor de-
manded a high coupon rate.
| Developments In the money market in
dicate continuance of low rates. which
of course, will be a powerful factor ir
| the course OF bond prices. The large
amount of money distributed this weei
in interest and dividends will increase
the supply of funds available for In.
| vestment.