The Washington times., 1922-05-23

Copyright, 1879. by CosrhopoHtah Fe"s
Service.
NEW YORK, May 23.-With the
adjournment OF the Genoa confer
ence and the eventful May 81, not
far off, the principal interest IN
Europe centers about the reparation
payments which Germany IL sched-
uled to make before that day. The
German government ana 1lnanclal
leaders are making a desperate el-
fort to relate this matter OF their
fina ncial obligations TO their late
enemies to the international invest
ment market. In other words, they
want to borrow in order to
nav these debts. With that in
view, they are anxiously awaiting
the outcome of the conference OF
English, French. and American
bankers from whom they expect TO
receive some assistance.
Current cable reports on this ques-
ton are. of course. as confusing as
upon any other matter, and II Is Idle
to quote figures or to speak or terms
and maturities until after the com
mittee has issued it's official state
ment. Information concerning the
side and the terms OF the interna-
tional loan Is vague and will remain
30 for a time. That America Will he
requested to dig deeply into its In
vestment funds to absorb the Ger
man loan. goes without saying, but
German bankers will have q rude
awakening II they belieye United
States resources will be poured out
promiscuously in return for a mere
promise to repay.
While the advance in speculative
Industrial and railroad bonds has
featured the listed bond market,
developments in the unlisted or
over the counter" bonds have been
no less significant. During the past
year there has been developed
market for high grade municipal
bond issues that Is practically with
out a precedent in American H.
nance.
Some investment experts attempt
to attribute this demand for muni-
cipals to the continued agitation
for the abolishment OF tax exempt
features. While there appears little
indication that such a regulation
can ever be adopted. the same was
said about prohibition. women =
rights and other of the big ques-
tions that have been before the
American public during the past
decade.
Municipals are rated not by their
selling prices per bond but by the
income yield and this is determined
largely by the current borrowing
rate of commercial funds in the
money market. During the war
period. the income basis OF high
rate municipals was well over }
per cent. While the rate was
per cent for the preceding decade.
For two years following the
armistice there was a little change
in this important yard stick, but
during the past year. n remarkable
change has taken place. MuniCipals
which commanded a rate of over 5
per cent can now be floated in the
market at near 4 per cent. The
attraCtiveness OF muniCipals is fur
ther attested by the heavy Compe
tition that may be seen in the
public offering OF the issues Of
prominent cities or other municipal
districts. 8
One OF the features OF the listed
bond market has been the rise in
the prices from issues on which in
tercst has for many years been in
default. Attention is called 20
these bonds periodically by news
paper reports from Mexico City to
the effect that officials there would
make every effort to come to a
satisfactory agreement with the
holders OF these bonds. Ii is in
conceivable that there can he any
other agreement than the ultimate
payment In full OF interest and
principal. hut this seems rather far
from the Mexican view of the sit
uation at the present time. 1t is
now stated that the Mexican sec
retary OF finance will arrive in New
York the latter part of this month
to confer on this important matter,
and II - hoped that something more
than reports and rumors will Re
forthcoming as a result OF the meet
ing.
No new announcements are made
today relative to the definite offer.
ing OF new foreign bond issues.
The bolivian loan of S24 900 600 in