The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-11-12
Ii Tie CHANGE IN.
BOND MARKET SEEN
DURING PAST WEEK
Outlook For Future Uncertain.
Treasury Department Must
J Do Some Financing.
Prices Regarded High
By BYRON SELLER
ciaI Correspondent of Tho Age-Herald
1922, by The Age-Herald)


New York, November IL. - Price
changes in bond quotations this week
were so small on the average as to
be without meaning. On November
1 the average price of 40 represen-
tative bonds was 89.41 and on No
vember 8 the average price OF the
same bands was S9.4S. Certainlysthere
is no indication here of any defi-
mite trend.
Many factors are to be taken into
consideration in any estimate of the
future. First, there Is the need OF
the government Undoubtedly next
month tho Treasury department must
do some sort of financing. The pros
pect of it's being able to float long
term bond issue with per cent
coupon seems very slight with the
new treasury Ids as well as all the
older issues selling below par 1t
is even uncertain what kind of a
reception would be accorded new
offering On 41-4 per cent basis,
Notwithstanding the large over-sub-
scription to the last issue.
This leaves the issue of short
term paper as the only resource.
Such an operation might not depress
the bond market but it ceftRtnly
would not help it.
No Change Expected
The outlook is for no great change
from present quotations SO far as
money goes. On the one hand general
business is absorbing more and more
capital. On the other hand the gem
eral banking situation is SO strong
that there is no reason to anticipate
much higher rates. This would tend
to leave bond prices about where
they are.
Probably the attitude of the ulti-
mate investment holder will be the
controlling factor. And his idea seems
to be that prices are too high. The
decline of the last two months un-
doubtedly has given him the inn
preston. During the long up-swing
the average bond buyer noted with
qualification the steady advance in
market prices for his securities.
Even the least speculatively in
clined are pleased when their prin-
cipal appreciates. Under such con-
ditions they are good customers for
new offerings. Outright speculation
helped along the advance and such
speculation was not confined to any
one class.
Now. all this is changed. Quota
tons have been going down. The
investor with surplus funds has
noted the trend and concluded to
wait. His confluence Is not strength
ened when he sees new offerings
sell a point or two below the issue
price as soon as the syndicate is
dissolved. Doubtless all this atti-
tude will be altered when UNDER
writing houses adjust their offer
ing prices more nearly to the actual
market.
How long it will be before there is
turn. is guess work. Opinion Is
sharply divided.
Business Outlook Good
Meanwhile. the foreign situation
alone excepted, all signs point %
reasonably good business this winter
and coming spring. No one expects
boom. No one can see and indi-
cation of reaction. The railroads
have more business than they can
handle. The shortage in transporta
ton facilities Is becomming daily
more evident. AS far as all this in
dicates increasing production, it is
good. AS far as 1t slows up all
manufacturing processes it is bad.
1t was estimated that approximately
10000 tons of the finished products
of the United States Steel corpora
ton had to be stored in September
because Of lack of cars. The amount
forced into storage In October has
been placed at 100000 tons.
Commodity prices continue on the
upgrade. Both wheat and corn have