The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-26
.FINANCIAL.NEWS
AND COMMENT
Rapid Absorption Of New
Bonds Features Day While
Stock Trading Is Heavy.

Bond market history was made yes
terday and in the process the other mar
kets were crowded into the background.
No more complete demonstration OF the
ease OF money rates and the hunger Of
investment capital for work to do has
been seen this year than in the days
rapid subscription to new bond issues
and strength Of existing securities. The
absorption in little more than an hour
OF 100000 900 of the Canadian Govern
ments per cents. at par--the smallest
yield returned by any foreign offerings
In the domestic market since before the
war--and the oversubscription OF s4O.-
100000 of the Empire Gas and Fuel
Company's 7Hs of themselves would
have stamped the day as memorable
But it required the $45, 600, 900 Of the
city's al per cents, oversubscribed
nearly six times. TO cap the climax of a
truly remarkable day. The 2.76 per cent.
premium over par, which the city re-
| ceived. was the largest ever paid by
bankers for an issue of equal coupon and
approximately equal maturity, this be-
Ing an earnest Of New York's high credit
position and to greater extent proof
OF abundant money available for stand
ard investments.
Another session OF heavy business in
stocks brought forward more obvious
signs of distribution than were seen last
A midday 80
points among many industrials, how
ever, was blanketed pretty we'll by
strong upbidding of rail, public utility
and oil shares, and q rally in the last
hour left the markets final appearance
one OF strength rather than of weakness.
me railroad issues, especially stocks OF
the caliber of Kansas City Southern,
Missouri, Kansas and Texas (new) and
Texas and Pacific were in demand all
the way along. A fractional advance of
the United States Steel Corporations
stock indicated that its followers were
not pcrturbed by the imminence OF the
company's quarterly report The state
ment for the first quarter, issued late in
the afternoon, was significant less be-
cause of the large deficit reported. all Of
the common stock dividend and more
being taken from SUI plus. than by rea-
son OF the progressive increase Of net
earnings from January to March. It
had been a foregone conclusion that the
known expansion Of mill operations in
March would not lift the three months
result out of the red ink column, but the
financial community was interested espe-
cially in the extent to which the third
month had improved compared with the
first. The record was impressive. Febru-
airy, with fewer working days than Janu-
airy. disclosed 80 per cent. increase,
while March brought a 81 per cent. adj
vance in net compared with February
April earnings are running better than
those of March. and an average OF the
March result of sS.505.000 would see the
common dividend more than earned in
the second quarter. 1t is too early to
forecast May and June income however
as the coal strike is likely to have a
bearing on the situation.
reaction in German exchange prac-
tically eliminated Mondays advance and
the other European rates Influenced d.
rectly by the Genoa conference were
easier The reaction OF sterling. how
ever. amounted to the barest fraction
and il could hardly be said that the
conference had any new and pronounced
bearing on the market. The signs point
toward more interesting developments
in the pending conference of bankers.
including ]. r. Morgan. over a loan to
Germany than have come from events
in Genoa.
break OF cents bushel i'm the
May wheat option reflected the. undoing
OF large speculative contracts for the
rise. The months which are thought
now to reflect more clearly speculative
opinion on this years supplies are July
and September and they receded no more
than cent bushel. Cotton was ir-
regular.