The Washington times., 1922-08-10
BOND MARKET
ACTIVE DURING.
MONTH0F JULY
Trading Last Month Amounted
to $500, 900. 900, With
Prices on Upward Swing.
By MUNROE ROBERTS.

tSopyFiEhts tsAAf w SvshIokshteh Afo"s
NEW YORK, Aug. frFipyrre-
ports from the bond div ~ OF the
New York stock exchange feveal the
fact that trading in bonds on that
important market in July was only
slightly under the June aggregate,
the total being about $500 900 900, a
daily average OF about $4,000. 900. Of
which Liberty bonds made up about
"a, 500 900. On the whole. price
changes in the period referred 10
were mostly upward and It was in
July that the Liberty issues, as well
as d number OF the semi speculative
railroad and Industrial bonds, reach
ed their high figure for the year,
and in some cases. for three-year
period. Investors showed a keen APP
probation for the enhanced values
which accrued to convertible indus
trial bonds because of improved con-
ditions In the companies by which
they were issued; and railroad bonds
closely followed the progress Of the
stock Of the same companies on the
listed stock market.
Buying by banks and fiduciary in
expansion as evidenced by their re-
ports to the Federal and State bank
ing departments. Further ease In
money rates and increases in sur
plus funds were important factors
In the higher price trend. J
Today's average price for the ten
highest grade railroad bonds, accord
ing to the Dow-Jonss summary, is
91.04, an increase of 1912 from one
year ago; the average of the ten
second grade rails is $500, up 1881
from last year: ten public utility
bonds $500, up 1906, and ten indus
trial bonds 1884. up 11.03. The COM
bined average price for the forty
representative issues at the opening
of the market today Is 90.99, com.
pared with 77.79 one year ago.
It Is stated in the financial dis.
trict that ratification by the Mexi.
can congress of the agreement made
between Finance Minister de Ia
Huerta and the representatives OF
the bondholders will mean first pay.
ment of interest on the defaulted
bonds by January 2, 1928. Should
this be done, bankers are OF the
opinion that Mexico's credit will be
re-established both in this country
and in Europe, and the dawn Of a
brighter day will break for that un.
fortunate country.
The new Mexican budget will pro-
vide for considerable increases in
the various forms Of income, as well
as drastic reductions in the expend-
itures, leaving a wider margin for
the payment of bondholders, who
have made quite a concession to
the Mexican officials. but In the
long run they. will receive a great
deal more than IL they attempted
to push their claims to the limit.
Much credit Is due to the skill of
the leaders of the American and
Mexican finance in perfecting an
agreement which on more than one
occasion seemed on the verge of a
breakdown.
Today's new bonds offering az.
gregate about $4,000, ,00O,. including
one joint stock land bank issue In
the amount of $4,000, 900; one indus.
trial and two municipal issues.
The principal new offerings are
81 .000, 900 first Carolinas Joint Stock
Land Bank; 5 per cent farm loan
bonds, offered at 102h to yield
4,ss per cent; $1,000. 900 first mort.
gage per cent convertible sinking
fund gold bonds Of Gray and
Davis, Incorporated, due August 1,
1892, at par; $1,000, 900 Guilford
county, North Carolina, serial s
per cent bonds. due 10000 annually
from September /, 1927, to 1851, at
prices to yield 40 to 4.S5 per cent.